US-based bookseller Borders is offering customers the incentive of a $20 gift card with every Kobo e-book reader it sells.
The move comes after rivals Amazon and Barnes & Noble slashed the prices of their e-book readers in the wake of fresh competition from Apple's iPad and a number of newly launched e-book reader devices.
Until recently, the Kobo had been the cheapest e-reader available in the market, offering users a 3G-enabled e-book reader for a very affordable $149.99.
Borders' advantage in the budget market has come under threat with the launch of a new Wi-Fi-only version of Barnes & Noble's Nook, which also comes with a colour screen, at the same price.
Borders believes that bundling the $20 gift card with its e-book reader will provide a much-needed boost to sales. The company has also announced that the members of its Borders Rewards scheme will earn double credit for their purchases, allowing them to accumulate enough points for a $10 credit certificate.