Cryptocurrency is becoming mainstream banking on the popularity of the gift cards

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A sustained interest in digital payments has created an increased demand for cryptocurrency. Consequently, merchants, big and small, online and in-store, want to accept crypto payments as consumers, mostly young customers, now look for more crypto payment options. Regarding payment options, gift cards are one of the most convenient payment methods; thus, over the last four to six quarters, the usage of crypto-funded gift cards has seen an uptick used globally. As a result, crypto platforms are either in a partnership or standalone, strategizing to make crypto more accessible to general consumers through gift cards. For instance, 

• In September 2022, India-based cryptocurrency exchange, Flitpay, launched virtual and industry-first physical crypto gift cards with the onset of the Indian festive season. These crypto gift cards are designed to deliver the receiver a higher value for money with an effect of a gifting emotion. While physical crypto cards can be pre-ordered and delivered anywhere across India, virtual crypto gift cards can instantly be sent to friends and family. The company designed these customized gift cards with attractive designs, high security, and an easily convenient redemption. 

• In September 2022, a Bitcoin gift card provider, BitCard, announced to merge its services on a digital gift card platform called Tillo. This integration will enable several customers to purchase cryptocurrency without having a proper crypto account or wallet. 

Notably, BitCard is a gift card platform that allows customers to purchase Bitcoin to put on a gift card, which the customer can easily redeem. Moreover, customers can also use the BitCard to buy from the platform's official resellers. Consequently, this platform makes it very easy for customers to access cryptocurrency prices and card amounts through the BitCard website. Now, the new collaboration will allow Tillo's brands to capture more customers as BitCard provides tech-savvy digital customers with easy cryptocurrency ownership. 

• With the increase in the usage of cryptocurrency globally, crypto platforms are also increasingly adding new payment methods to buy cryptocurrency. For instance, in August 2022, crypto payments technology company BitPay announced to include Best Buy gift cards to its range of gift cards that will help consumers to buy with cryptocurrency easily. This new addition of gift cards will allow consumers to easily spend Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and other cryptocurrencies at any online retailer.

Under Best Buy, thousands of brands exist, and this collaboration with BitPay will consequently enable more customers to buy gift cards with cryptocurrencies. All in all, the customers will be able to use fifteen different cryptocurrencies to buy gift cards on the BitPay website.

According to PayNXT360 estimates, more than 26 million customers in the United States have used cryptocurrencies for online purchases in H1 2022. Use of crypto for in-store purchases has also increased over the last four quarters. Moreover, around 17% of crypto users have purchased cryptocurrency-based gift cards online.

Though there is a drop in the price of Bitcoin, cryptocurrency continues to remain popular in the United States. Thus, PayNXT360 expects more such collaborations with gift card platforms, thereby making crypto payments easier and more accessible for customers.

• To make crypto payments more accessible to a wider customer base, Binance Gift Card launched a new feature called Trust Wallet in August 2022. Notably, Binance Gift Card is an e-gift card that helps users send and receive crypto and selected fiat currencies. Now, with this new functionality, 'Redeem to Trust Wallet,' an individual can claim their gift card even if one is in a place where Binance does not work. 

Binance Gift Card introduced this new feature on its website in collaboration with cryptocurrency wallet service provider Trust Wallet, which dissolved the geographical limitation issue. Through this collaboration, the gift card platform is expanding its user base so that it can provide services to consumers at a global level. Moreover, Trust Wallet is a crypto wallet designed with high-security features to protect clients' crypto holdings against possible hacking and theft. Additionally, the gift card platform launched an exclusive customizable Trust Wallet collection only in September. Thus, PayNXT360 anticipates this new feature to capture more customers generating higher revenue over the long run.

On the other hand, gaming platforms are entering the crypto space through gift cards. For instance, in October 2022, GameGuru, a 3D game-maker, announced the launch of a crypto marketplace for e-gift cards and digital gaming codes. The gaming platform entered the space to develop its brand banking on the billion-dollar digital card sales industry. Therefore, PayNXT360 expects more such innovative initiatives to make crypto more accessible for common people over the long run.

To know more and gain a deeper understanding of the global gift card market, click here.