Crypto Gift Cards: The Future of Gifting
Cryptocurrencies have become increasingly popular in recent years, with over different coins available as of October 2023. As more people become interested in digital assets, the demand for crypto-related gifts has grown.
In fact, the global gift card market is expected to reach $1.6 trillion by 2026, with a significant portion of that likely coming from crypto-based gifts.Crypto gift cards are digital or physical cards that contain cryptocurrency instead of traditional fiat currencies.
They provide a convenient way for individuals to purchase and store digital assets like Bitcoin, Ethereum, and Tether. These gift cards can be used for online transactions, as well as gifting cryptocurrency to friends and family.
Bitcoin, which began with a value of less than a penny, soared to historical highs of over $73,000. Following Bitcoin’s groundbreaking success, more than 21,000 different cryptocurrencies have evolved, with Ethereum and Tether rounding out the top three in value.
Gifting cryptocurrency presents an opportunity to introduce individuals to this innovative form of currency while offering the potential for value appreciation. However, it's crucial for recipients to understand how to access, secure, and utilize the gift, as well as handle any associated tax obligations.
The widespread adoption of cryptocurrencies is evident, especially among younger generations. A Morning Consult survey revealed that 26 percent of millennials owned Bitcoin, compared to 14 percent of all U.S. adults. However, the rise of cryptocurrencies has also brought challenges, including significant environmental concerns.
Global mining for the largest cryptocurrencies is estimated to generate between 110 and 170 million metric tons of carbon dioxide emissions per year, according to a White House report.
What are crypto gift cards?
A crypto gift card is a digital voucher that allows the recipient to purchase gift cards using cryptocurrencies as a modern payout method. Crypto gift cards provide a convenient way for individuals to acquire digital assets without the need to set up a cryptocurrency wallet or exchange account themselves.
However, understanding that many are still new to the world of crypto, let us check how crypto gift cards are faring in the digital world by quantifying their relevance.
The statistics mentioned earlier highlight the importance of crypto gift cards in the industry. This significance presents an opportunity for gifting companies to utilize the vast potential of the crypto industry to increase their liquidity.
How do crypto gift cards work?
Crypto gift cards are similar to ordinary gift cards. The way they work is really simple: they contain a specific amount of cryptocurrency, like Bitcoin. To activate the card, you need to use the code on the card and transfer the crypto to your crypto wallet.
If you want to buy a gift card crypto, you will need a crypto exchange platform that will allow you to buy it. Once you find one, choose the cryptocurrency you want to gift the amount and then send it.
Benefits of using crypto gift cards
Crypto gift cards offer several advantages over traditional gift cards:
1. Convenience and ease of use
Crypto gift cards provide a simple and easy way to introduce someone to cryptocurrencies. Digital crypto gift cards are easy to send globally, instantly redeemable, and never get lost or misplaced.
2. Faster transactions
Cryptocurrencies enable faster transactions compared to traditional payment methods. The average transaction time for Bitcoin is around 10 minutes, while Ethereum transactions are typically confirmed within 2 minutes.
According to Statista, the average transaction time for Bitcoin is around 10 minutes, while Ethereum transactions are typically confirmed within 2 minutes.
3. Lower fees
Crypto transactions often have lower fees compared to traditional payment methods. For example, the average Bitcoin transaction fee is around $1.50, while credit card processing fees can range from 1.5% to 3.5% of the transaction amount.
In contrast, a $2,587 Bitcoin transaction at the $1.50 average fee would cost 0.0578%. Traditional payment methods like credit cards have even higher fees, ranging from 1.5% to 3.5% of the transaction amount.
4. Enhanced security
Crypto gift cards offer added security features like multi-signature approval and two-factor authentication. Cryptocurrencies also provide more privacy than traditional payment methods, as there is no need to provide personal identification when buying gift cards.
5. Smaller purchase amounts
Crypto gift cards allow users to purchase smaller amounts of cryptocurrency, making it more accessible to a wider audience.
6. Flexibility
Crypto gift cards offer the flexibility to choose between digital and physical gift cards. Digital gift cards can be sent instantly via email, while physical cards can be mailed or delivered in person.
As more merchants accept cryptocurrencies as a form of payment, the demand for crypto gift cards is expected to increase in the coming years. With their global reach, convenience, and potential for growth, crypto gift cards could become the "new normal" in the gifting industry.
Make Xoxoday Plum marketplace yours in minutes. Integrates with your application (web or mobile). Use your preferred SSO mechanism to seamlessly allow users onto the marketplace so that you can avail of the crypto gift cards effectively.
Which cryptocurrencies can you gift?
The type of cryptocurrency that can be gifted in crypto gift cards will depend essentially on the crypto exchange you use. The choices are vast and diverse. Some popular options include Bitcoin, Ethereum, Litecoin, Ripple, and Bitcoin Cash.
How to buy gift cards with cryptocurrency
Now that you're familiar with crypto gift cards and how they work, let’s walk through the steps to purchase one using cryptocurrency.
Step 1: Purchase a crypto gift card
After selecting a platform that meets your requirements, it’s time to purchase the gift card using crypto. This often brings up questions like: Can I buy Bitcoin with a gift card? or Can I use Bitcoin to purchase a gift card?
The process is straightforward—head to your chosen platform, select the cryptocurrency (e.g., Bitcoin or Ethereum) and the amount, and complete the purchase. If you want to buy a gift card using Bitcoin, simply use your Bitcoin balance at checkout. If you're looking to buy Bitcoin using a gift card, apply the gift card’s balance to make your crypto purchase.
Step 2: Choose from a range of popular gift cards
Crypto gift cards come in various forms, including Bitcoin, Ethereum, Tether, Dash, Dogecoin, and others. These cards are a convenient way to buy, store, and transfer digital currencies. They’re ideal for online transactions or for gifting crypto to friends and loved ones.
Step 3: Advantages of buying gift cards with crypto
One of the biggest perks of using crypto for gift card purchases is its global accessibility. You can buy gift cards from international retailers without geographical restrictions. These cards can be used anywhere that accepts cryptocurrency, or even as a way to trade, invest, or introduce others to digital assets.
Step 4: Things to keep in mind when using crypto for gift cards
Before purchasing, be mindful of the volatile nature of cryptocurrency values—exchange rates can shift quickly. Always opt for trusted platforms to ensure a secure transaction. Check the redemption methods, transaction fees, and any usage limitations on the gift card.
Lastly, protect your personal and financial information, and don’t forget to stay informed about any tax regulations related to crypto in your country.
Selecting the right crypto gift card platform
Before purchasing a gift card using cryptocurrency, it's essential to choose a reliable crypto exchange platform. Here are a few key factors to consider:
- Reputation: Always evaluate the credibility of a platform before making any transactions. Check user reviews on sites like Trustpilot, browse their social media channels, and read through discussions on crypto forums to identify common issues or red flags.
- Fees: Fee structures can vary widely between platforms. Look out for high or hidden charges, and make sure to compare multiple options to find one with the most competitive and transparent pricing.
- Security: Make sure the platform is well-established and easily verifiable online. At a minimum, it should offer two-factor authentication (2FA) to help protect your digital assets and personal information.
Enable your users to buy e-gift cards with cryptocurrency with Xoxoday Plum
Crypto gift cards are a major innovation in gifting, transforming how we exchange value and appreciation. As crypto adoption grows, converting digital assets into real-world rewards becomes increasingly valuable.
These cards create a seamless bridge between crypto and traditional economies, helping users unlock their digital holdings for a wide range of products and services. With lower fees, faster transactions, and global access, they’re a compelling choice for businesses to incentivize and reward stakeholders. In essence, crypto gift cards offer a flexible, efficient, and inclusive way to gift in the digital age.
Xoxoday Plum enables seamless integration of a crypto-compliant gift card catalog into your platform with secure, global redemption. Easily embed our marketplace using iFrames and SSO, offer 1M+ reward options across 100+ countries, and ensure safe transactions with industry-leading security standards.
Crypto firms can entice non-crypto users to buy, hold and sell crypto by offering familiar gift cards, accelerating adoption and unlocking growth through increased engagement and loyalty.
To learn more about how Plum can enhance crypto gift card offerings, schedule a demo with our experts today.