Online credit card firm NextCard Inc.
Tuesday expanded its e-commerce offerings by taking a
stake in Flooz.com, a provider of online
gift currency.
NextCard’s (NXCD)
investment marks its first equity investment in an e-commerce company. Flooz
will use the investment to expand its e-commerce services. Currently it
provides currency that is redeemable at more than 60 e-commerce sites,
including Godiva Chocolatier, TowerRecords.com, Starbucks.com, Gymboree.com, Skechers.com, Eastern Mountain Sports, Babystyle.com, Art.com, MotherNature.com and Fogdog.com.
In addition to the investment, the two companies have formed a marketing
alliance in which Flooz’s online gift currency will be integrated into
NextCard’s e-commerce platform, cardholder services and ongoing promotions.
In return, Flooz will exclusively market and promote the NextCard to its customers and pay
NextCard a referral fee for each new Flooz customer generated from either
NextCard’s application process or current cardholder base.
“Our investment in Flooz.com is an important part of NextCard’s strategy to
provide our customers with the best e-commerce functionality and make it
easier for consumers to shop online,” said Dan Springer, chief marketing
officer of NextCard. “Flooz is clearly the premier online gift currency and
we’re excited to invest in a company whose business complements NextCard’s
vision-to define and enable the consumer’s Internet transaction experience.”
“NextCard’s investment both validates Flooz.com’s core business objectives
and adds a new dimension to our strategy to improve the experience of online
gift-giving and shopping,” said Robert Levitan, co-founder and chief executive officer of Flooz.com.
