Four McMaster students are helping a local gift-card cash-exchange company grow unexpectedly quickly in a relatively untapped Canadian market.
GiftCash is an online service startup based in Dundas that buys unredeemed or partially redeemed gift cards from customers in exchange for a percentage of the remaining value.
The company was co-founded in 2017 by Colin Moffat, a McMaster actuarial mathematics graduate, and his partner Kaya Harrod.
““Everybody buys gift cards and everybody receives them as gifts, and, a lot of time, people don't really want them,” Harrod said.
GiftCash runs a relatively simple but effective service. Prospective clients can go onto the site and check their gift card balance before submitting it. From there, the company offers a percentage of the card’s value. If the customer accepts, they receive an e-transfer payout within five business days.
Harrod and Moffat, are both from Ontario. Before starting the business, Moffat was playing professional poker in Las Vegas while completing his undergrad.
Inspired by a friend, Harrod and Moffat started the company as Moffat finished his degree. They officially incorporated GiftCash in August 2017, and hired their first employee in November.
Since 2017, GiftCash has grown quickly. Currently, more than 10,000 ‘orders’ of gift cards have been submitted to GiftCash, amounting to more than 40,000 cards redeemed by clients in total.
According to MarketWatch, Americans spent $130 billion on gift cards in 2017, but $1 billion were unspent.
One estimate in 2011 found that Canadians spent $6 billion a year on gift cards.
Because the Canadian gift card exchange industry is not as well-developed as the American market, Harrod and Moffat targeted Canadian clients at first.
“Raise and and CardPool kind of monopolized everything in the US, and they bring in millions of revenue themselves. There's nothing really like that in Canada,” Harrod said.
GiftCash’s biggest gift-card exchange competitor in Canada is CardSwap, which was founded in 2009.
However, encouraged by their early success, GiftCash expanded to the U.S. last year.
The company now already receives more orders per month from the U.S. than Canada.
GiftCash has fostered a close connection with McMaster as it has grown.
Including Moffat, eight GiftCash employees out of a total of fourteen in Canada are McMaster graduates or co-op students.
The company hired its first McMaster co-op student in 2018.
Currently, there are four co-op students working as data analysts, and Harrod and Moffat are looking to add to their team.
Harrod admits that she and Moffat did not expect the business to take off as fast as it did.
“Honestly, we didn't realize how big of a market this was until we kind of started. We kind of just jumped in headfirst and decided to do everything that we could,” Harrod said.
Harrod hopes GiftCash will be able to take the next step and become a major player in the Canadian and American market.
“Hopefully, by the end of this year, we'll have better infrastructure on the web site side, and we'll have a larger workforce,” Harrod said. “We'll be maybe not totally up there. I think that's a little bit of a high achievement. But at least we’ll be making a peg in the wall as we climb up to the top with our competitors.”
Students can find out more information about the startup at https://giftcash.ca/.
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By: Elizabeth DiEmanuele
The Student Success Centre is pleased to launch the Undergrad Peer Tutoring Network (UPTN), a new network for students to access affordable, quality student tutors, both in-person and online. The platform is powered by TutorOcean, a relatively new start-up company that was selected in partnership with the McMaster Engineering Society. Differing from other academic services available, this network is a chance to connect with another student who successfully completed the course; tutors must have received an A- to provide services.
“Through the Student Life Enhancement Fund, all McMaster undergraduate students who access the network receive a subsidy for the first seven sessions, meaning they only pay $9 per hour,” says Jenna Storey, Academic Skills Program Coordinator for the Student Success Centre. “Tutors are available from all Faculties and an important part of this service.”
Gina Robinson, Director of the Student Success Centre, adds, “Providing quality and affordable tutoring is an important objective of this initiative. Finding sustainable funding for subsidy will need to be part the plan moving forward.”
Understanding that there are a number of gatekeeping courses (mandatory courses for students to complete their degree), the Student Success Centre continues to work with Faculties to ensure that these courses are available on the network. The Student Success Centre has also incorporated measures to ensure that tutors are well-prepared, offering a number of different sessions for tutors to become “McMaster Certified.”
As Jenna shares, “Students are encouraged to find a tutor who has a ‘McMaster Certified’ badge on their profile, indicating they have completed the tutor training session in accordance with best practices. This training focuses on running an effective session, ethical standards, and communication skills.”
The Undergrad Writing Centre continues to be another support available for students, and can be used at any stage of the writing process. All Writing Tutors have undergone training through the Student Success Centre, which has been externally recognized by the College Reading and Learning Association (CLRA).
Students can book up to ten appointments per semester for free. This semester, new drop-in writing support is also available Tuesdays and Wednesdays from 3:30 p.m. to 6:30 p.m. The Undergrad Writing Centre is located in the Learning Commons on the second floor of Mills Library.
Jill McMillan, Academic Skills Program Coordinator of the Student Success Centre, shares, “Writing remains is a key academic and life skill requirement. We are thrilled to have received certification recognition that demonstrates the quality of this peer based service. Students are supported in meeting their writing potential.”
Students looking for quick study tips and other academic support can connect with Academic Coaches, located in the SSC Lounge as well as in the Learning Commons on the second floor of Mills Library every Monday-Friday from 2:30 p.m. to 4:30 p.m.
Learn more about the Undergrad Peer Tutoring Network here.
Learn more about the Undergrad Writing Centre here.
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