Japanese Gift Card Company – Amaten has announced it will partner blockchain network provider Aelf to issue tokenized gift cards on the blockchain; enabling giftcards to be exchanged and managed using blockchain technology.
Both companies look to curb fraud by enabling gift cards to be tracked from issuers to customers, to know where the card has been utilized or redeemed.
According to Amaten boss Tom Kanazawa, the current technology used to issue gift cards are obsolete and have failed to keep up with emerging digital trends and needs. In his words:
The current system and technology used for gift cards is completely obsolete and dates all the way back to the mid 90s. It still suffers from basic fundamental shortcomings and is very inconvenient. I believe that the gift card industry can be a perfect use case for blockchain. The two are a completely natural fit.
The chairman further states that the use of blockchain will ensure transparency and eradication of all gift card scam centres.
Amaten says its blockchain gift card options will kick off in Japan, with a subsequent spread to other countries including China and Korea.
It is worthy of note that the global gift card industry dominated by brands like Amazon, Apple iTunes and more, is worth over $340 billion; with Japan accounting for $21 billion of this figure.
From figures and transaction numbers, crypto, gift cards and other digital payments amount for over one billion transactions yearly; and this relevance is given further credibility as preference moves to cashless transactions and online purchases.
These statistics have steered global brands such as Coinbase to herald the era of crypto gift cards in a bid to offer more dynamic payment options. Although still in its early stages of development, it is predicted that whoever pioneers the blockchain giftcard niche will gain major traction.
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