Does the future of prepaid include Blockchain?

first_imgThe initial use of blockchain technology was as the public ledger of Bitcoin transactions. However, innovators from all corners of the financial industry are now exploring new uses for the technology – including in the prepaid market.Gift cards, in particular, are emerging as potential candidates for the blockchain. Digital gift card platform Gyft, for instance, recently announced a partnership with blockchain infrastructure provider Chain to create gift cards to run on the blockchain.Why all the excitement about gift cards on the blockchain? Chief among the benefits of the technology is the potential for fraud reduction.Closed loop (i.e. retailer) gift cards are particularly vulnerable. Any compromised codes will not be revealed until the final recipients try to redeem the cards. At that point (often many months after the compromise occurred), it’s nearly impossible to identify the fraudster. Compromised gift card codes result in a bad consumer experience, financial loss for the issuing retailer and a black eye for the entire prepaid marketplace. continue reading » 7SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblrlast_img read more