Gift card entry into the NFT space

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The transition from traditional gifting to e-gifting or physical gift cards is a notable cultural shift. With the ongoing NFT glory in various industries, it is the best time for the gift cards segment to adapt NFTs into the space. More gift card providers are interested in entering the arena of NFT and helping brands and businesses retain customers through innovative collaborations.

• Innovative partnerships of gift card providers with NFT and blockchain companies

Various brands are interested in engaging consumers via exciting and authentic NFT promotions, and products are expected to be one of the best customer loyalty opportunities in the next decade. For instance,

• Blackhawk Network, a global provider of branded payments, announced its collaboration with Bitski, an NFT and blockchain wallet leader, to dispense the world's first NFT by purchasing a gift card that offers both real and virtual world value. Blackhawk network is also providing the first 100 customers one of 100 limited edition NFTs by Jon Shelley, a.k.a Kryptoz, on purchasing AMC Theatres gift cards worth US$ 50 or more. These gift card recipients can access Jon Shelley's NFT by registering and redeeming through Bitski. Later, they can collect or resell the NFT, cashing it on hidden rewards, or use it in the metaverse.
• Fidira, an Australia-based financial services company, is simplifying users' entry into the crypto ecosystem by using gift cards, and then users can hold Crypto, DeFi, and NFTs. In August 2021, Fidira announced an opportunity for users to enter the NFT marketplace simply by purchasing one of its gift cards that will be available in retail stores soon. After the purchase, buyers can scan the QR code on the gift card, creating a wallet with the gift inside. In addition, users will get a free NFT with every gift card from Fidira or any of its partners, such as ChainGuardians and Babylons.

• Regulations for gift cards and NFTs

The Central Board of Direct Taxes (CBDT) has recently released a circular that clearly explains which digital assets come under the label "Virtual Digital Asset (VDA)" and how they will be taxed in the future. As per the circular, VDAs will exclude gift cards, reward points, loyalty cards, mileage points, and vouchers but include cryptocurrencies and non-fungible tokens (NFTs). The tax will be exempted on gift cards or vouchers redeemed for goods or services, reward points, mileage points, and loyalty cards redeemed on goods or services.

Gift card providers provide users a quick and easy way to enter the NFT marketplace and maximize their passive income, rewards, and governance benefits. Partnerships of gift card companies with NFT and blockchain companies are providing growth opportunities for retailers and consumers to enter the Web3 space. 

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