From mobile to the American adoption of chip-card tech, payment technology has had a decade. Developments have positively impacted each step of the transaction pipeline: faster processing and settlement times, lower transaction costs, and perhaps most importantly, less fraud. payments great While general payment makes great strides, technology gift card tech is lagging behind. The problems with gift cards are aplenty: The lack of personally identifiable information makes gift cards a prime , and it makes for the perfect platform to . theft target launder money There’s a serious — if you lose your gift card, it’s gone. lack of security While some states require stores and restaurants to refund small gift card balances, it’s not always worth the hassle. Somehow, remain a problem. trapped balances : eBay is chock-full of fraud, you can’t trust Facebook Marketplace or Craigslist, and even some of the gift card resale specialists don’t have the secure transfer of a gift card figured out. The secondary market sucks because of their cash-like traits. It’s estimated that 10% of all online fraud attempts were on downloadable or e-mail gift cards. Those who engage in credit card fraud frequently target gift cards It would be one thing if gift cards only faced one of these issues — but . the relevance of this complete list in 2018 is staggering Solutions are on the way, though they’re not coming from who you might expect — not American Express or Bancorp (issuer of the popular Vanilla Visa Gift Card), but from a set of smaller companies and startups. Ya know, because why would the parties responsible for issuing and selling give a care? is a nine-year old gift card exchange owned by Cashstar. They do this the right way, where gift card sellers sell the card to Cardpool itself rather than to another person on a marketplace. The company role as an intermediate step allows Cardpool to verify amounts and potentially take other steps (like transfer the balance to a new number) to ensure the eventual buyer gets what they paid for. Cardpool While that’s a great immediate step to address of the problem, other companies are entering the picture with their eyes on the entire prize. some , a new entrant to the space, shifts the experience from the existing (plastic or code) experience onto a new, open-source, blockchain-based platform. Tokky Perhaps most importantly, Tokky leverages blockchain to link each gift card with a user account — this logs ownership, secures against theft or unwanted transfers, and serves as a guard against money laundering. The firm plans to offer a secondary marketplace for cards of all amounts, whether it’s the leftover $0.71 or the full $50.00. The ambitious project, which also includes point of sale software and an end-user mobile app, is set to release a public beta this fall. You can register for more information on their . website I have expressed my about this space before — Benja was the victim of a carding attack in late 2016 — and the unfortunate truth is our experience scared us away from the space entirely. frustrations It doesn’t have to be that way, and if Tokky and its competitors have their way, we’ll see the benefits by this time next year. all Andrew J. Chapin is Co-Founder & CEO of Benja , head of the benjaCoin token project, author of Art of the Initial Coin Offering , and an advisor to several crypto projects. This November, Andrew is running the New York City marathon for Athletes to End Alzheimer’s .

Amazon

American Express

eBay

Facebook

Target

Twitter

Visa

About Drew Chapin

Read My Stories

Portfolio

Partner

Too Long; Didn't Read

Developers: Build Less. Deliver More. [Learn how]	

Gift Card Technology Lags Behind, Consumers Lose

Gift Card Technology Lags Behind, Consumers Lose

Too Long; Didn't Read

People Mentioned

Companies Mentioned

Drew Chapin

About Author

TOPICS

THIS ARTICLE WAS FEATURED IN...

Gift Card Technology Lags Behind, Consumers Lose

Too Long; Didn't Read

People Mentioned

Companies Mentioned

Drew Chapin

About Author

TOPICS

THIS ARTICLE WAS FEATURED IN...

RELATED STORIES