Prepaidify has adopted blockchain technology in their digital gift cards bringing together retail industries and cryptocurrency.
Anyone must have wondered at some point in their lives what role digital gift cards play within cryptocurrency. The crypto topic remains mind-boggling to most people while some companies are welcoming its concept.
The gift card industry being one of them continues to embrace crypto as more programs and wallets that accept gift cards are being created. Prepaidify makes ownership of crypto gift cards possible.
Most people are clueless about this matter. However, this article is going to demystify how digital gift cards are becoming involved in cryptocurrency. Read along and be informed!
So, what is cryptocurrency?
Currency is the monetary system used in a particular country. Cryptocurrency, therefore, is a medium of exchange in virtual or digital form. It is decentralized as opposed to the centralized banking system. It uses blockchain technology to verify and secure transactions.
Cryptocurrencies are emerging and growing every day and according to Forbes, there are 2,530 cryptocurrencies with a $123 billion value. The most popular crypto is Bitcoin, Ethereum, and Litecoin.
How do digital gift cards come into play?
Applications are starting to make capital of the interchangeability of crypto and digital gift cards. They interact in the following ways:
As Bitcoin gift card
This allows customers to offer Bitcoin gifts to people without fear of risk. It makes it easy for the average consumer to access it, making buying Bitcoin painless.
Payment option
Some programs like Swych, Gyft, and eGifter offer crypto as a payment option during the purchasing point. When checking out you will see this option among the payment methods like PayPal and card type.
Crypto wallets and apps
Various applications allow the cryptocurrency to be spent in online stores. Buyers can pay for products using crypto gift cards.
Advantages
- New consumers: Using crypto as a way of buying digital gift cards makes it accessible to new audiences or consumers.
- Multiple currencies with zero interchange fees: Using crypto to buy digital gift cards make it accessible to a worldwide audience with different currencies. This also means no interchange fees.
- Safer transaction: Most payment options like credit cards have reversible transactions while cryptocurrencies are irreversible. Upon confirmation of the transaction in the network, the transaction cannot be attacked or rolled back. This makes purchasing gift cards online safer.
Disadvantages
- Stage of growth: Crypto is in the early stages of development. No data exists as to how much crypto is being used for digital gift cards or cashed out. Some applications are recording constant cashouts which may not be much as compared to digital gift card programs.
- Fraud: Cyber security is on the rise in the digital age as cybercriminals steal crypto. Trust is bestowed on the security strength of your crypto of choice.
Conclusion
In summary, cryptocurrency is a new and somewhat hard topic to comprehend. There is so much to learn about it as it pops up in the gift cards arena. Gift cards like Prepaidify may help crypto holders to purchase in online retail stores around the globe in multiple currencies.
