they sell gift cards that consumers can use to purchase products from them. Usually, certain individuals or companies would buy gift cards to giveaway to their employees or send it to some loved ones or close friends. Most of the time big companies can get a discount from these companies who offer gift cards but on the business side, it highly favors the companies offering gift cards. Not only that they have sure customers because those gift cards can only be used in their own products but at the same time it is just the same as cash payment but this time the cash was already given in advance by companies who purchased it. They may have provided discounts but for sure they still have earnings to that because no business would propose something without the benefit of the company.
Third and the last, gift cards are time limited. Most of the gift cards have an expiration date. Businesses have their own seasons too. There are months that the sales are high and some months that are very low. The strategies of some companies are that they would give away gift cards at a much-discounted amount. The usual target buyers for this are big companies. For example hotel chains, they would offer gift cards to companies at least price and companies will use it as a reward to their employees. Now, since it is just a reward, employees will just use the services depending on the time it is still valid without asking any options to reschedule it at a later time they preferred. It is very beneficial to both companies involved and at the same time, this ensures that regardless if their gift cards will be used or not, the company is already paid for that period of time.
To sell gift cards and making a business out of it is something that one would consider if they wanted to start a business.