Commonwealth Bank of Australia (CBA) has acquired a 20% stake in gift card startup Karta by making an undisclosed investment.
The investment in Karta is part of the bank’s strategy to strengthen its shopping offering following its investment in online shopping start-up Little Birdie in May this year.
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By GlobalDataCBA executive general manager everyday banking Kate Crous said: “Simplifying the purchase, delivery and use of gift cards and enabling more businesses to participate in this market will enable CBA customers to better support businesses they love.
“Through our new partnership with Karta, we will revolutionise gift cards as we know them by allowing consumers to purchase a gift card from any participating business, gift it electronically to anyone, anywhere. And their friend or loved one can redeem it from their digital wallet anytime.”
Notably, CBA’s shopping offering also includes a joint venture between the Australian arm of Klarna and the lender’s cashback programme.
Karta CEO David Anderson said: “Karta’s technology platform is scalable globally and is bolstered by a multi-year strategic partnership with Mastercard, leveraging the payment company’s network and tokenisation technology.
“This means that Karta gift cards can be used at any participating business that accepts Mastercard, with no integration needed at the point of sale whatsoever.”
Karta gift cards will be available to customers from early next year.
