Cardpool

Cardpool operated as an online gift card exchange, a secondary market where consumers could sell unwanted gift cards or purchase them at a discount. The company was established in 2009 by co-founders Anson Tsai and Timothy Wong, who identified a common frustration among consumers holding gift cards they were unlikely to use. Prior to Cardpool, Tsai had co-founded the music service Anywhere.FM. The startup gained early traction, securing $125,000 in a 2010 seed funding round from investors including the accelerator Y Combinator.

The business model was centered on acting as a marketplace intermediary. Initially, Cardpool would purchase unwanted physical or electronic gift cards from consumers for a percentage of their face value, offering up to 92% in cash. These acquired cards were then sold to other customers at a discount, which could be as much as 35% off the card's balance. Revenue was generated from the spread between the purchase and sale prices. To build trust, the company verified the balance of every card and provided guarantees on the purchased value. In a strategic evolution of its services, Cardpool introduced a peer-to-peer "Marketplace" in 2017. This platform allowed sellers to list their gift cards directly and set their own prices, with Cardpool facilitating the transaction and collecting a service fee, offering an alternative to the direct-sale model.

In 2011, Blackhawk Network, a major player in the gift card distribution industry, acquired Cardpool, viewing it as a strategic entry into the secondary gift card market. Cardpool continued to operate under its own brand. However, the business faced challenges, including declining revenues, and in 2017 Blackhawk Network announced its intention to sell the unit. By 2019, Cardpool was sold to CPL Acquisition LLC, a company reportedly owned by a former Blackhawk employee. The company's final years were marked by customer service issues, a significant data breach in 2019 that exposed millions in gift card value and customer payment data, and financial difficulties. Cardpool ultimately ceased operations and permanently shut down in early 2021.

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