Swedish gifting app Wrapp features a "friend-to-friend marketing platform" that allows users to send digital gift cards to friends and relations. Since launching last year the app has been used to send more than 5 million digital gift cards to recipients' smartphones. More than 180 national and multi-national retailers in eight European countries now offer gift cards through Wrapp.

And now Wrapp has its own friend: PayPal. Wrapp announced that its marketing platform has been selected by PayPal to help it win new mobile payment customers in Sweden.

For Swedish customers who use PayPal rather than a credit card to pay for a digital gift card from Wrapp, the payments provider will tack on an additional SEK 49 ($7.35) to the gift card value.

"PayPal's creative use of our mobile friend-to-friend marketing platform is testament to its versatility and value to more than just giant brick and mortar retailers, and we look forward to expanding our partnership to more markets," said Hjalmar Winbladh, CEO of Wrapp. "We know that Wrapp and digital wallets have great synergy. There are definitely many strategic applications for our technology that can be developed with partners like PayPal."

For its part, PayPal said Wrapp is an innovative alternative for reaching new customers.

Wrapp users will be able to take advantage of the PayPal program during December and January.

For more stories like this, visit the loyalty programs research center.

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