PayPal has invested in Loop Commerce, which offers a software-based gifting service for retailers.
PayPal and Loop did not disclose the size of the investment, though PandoDaily reported it as $4 million. PayPal and Loop did not immediately return requests for comment.
Loop's Software as a Service gifting technology integrates into retailers' online stores. Consumers use Loop to notify the recipient of a gift, asking the recipient for information such as a shipping address and preferences such as color or design.
"We are impressed with the Loop Commerce team, approach and technology," says Don Kingsborough, Vice President of Global Strategic Development for PayPal, in a Dec. 11 press release. "Improving the online gift-giving and -receiving experience is of great importance to both retailers and consumers. We believe Loop Commerce represents the next stage in the evolution of the multi-billion dollar gift-card industry, empowering retailers and creating new opportunities through next-generation gifting experiences."
Kingsborough, who was founder and CEO of gift and prepaid card provider Blackhawk Network before joining PayPal, will serve as PayPal's observer on Loop Commerce's board.