Bitcoin is growing both in consumer and small business owner demand for its use due to cost savings, efficiency and global transfer ease. Coin Desk reports another venture capital in a start-up program yesterday named GOGOCO which plans to sell bitcoin in gift card form.
There are many small business owners who accept bitcoin payment for the above reasons and I sought out a digital gift card company that has been using bitcoin for payment of their gift cards. Here is an interview today with Tyler Roye, CEO and co-founder of eGifter, a social and mobile gifting marketplace and for businesses; it’s also a white-label platform that retailers can adopt for use in their own customer channels.
Q. Tyler, please tell me about your company’s digital gift card service.
T.R. Our Marketplace (eGifter.com and mobile apps for iOS and Android) sells eGift cards for more than 200 top brands and offers consumers an easy, personalized way to send digital gift cards in an animated eGreeting and video message via web or mobile. We offer flexible payment options, including all major credit cards, PayPal, and even most major cryptocurrencies (Bitcoin, Dogecoin and Litecoin).
Our system works with what businesses of any size already have in place for a gift card program or a retailer’s entire product catalog, gift registry or wish list. All of our solutions are available for both web and mobile and are fully cross-platform compatible, so users can send a gift from any device and retrieve it on any device.
Q. Since you cover a wide range of options for devices and payment amounts, how is the spending process with the consumer in using eGifter?
T.R. When someone gives an eGift card as a gift, the risk of returns, which costs businesses, especially smaller ones, significant money, is eliminated. In addition, a consumer will often spend an average of anywhere from 30 percent to 50 percent more than the gift card value when shopping for the actual gift.
Q. What services do you provide in gift cards that meet the cryptocurrency needs of the business owner?
T. R. For a business owner not yet ready to take the plunge into accepting cryptocurrency payments, we offer the ability to sell your gift card in our Marketplace for Bitcoin, Dogecoin, or Litecoin—a great way to pilot the opportunity.
By trying eGifter, a business owner can benefit from our large user base of cryptocurrency shoppers looking for places to spend their coins from a new audience.
Q. Have you noticed a jump in gift card usage in the past 90 days to Bitcoin or other cryptocurrency?
T.R. We have noticed a nice jump in sales overall, including Bitcoin sales. We attribute this to a combination of our growing brand awareness in the market, in addition to the continued growth of cryptocurrencies in mainstream retail.
Q. Who do you use to partner for the transfer of Bitcoin?
T.R. We partner with Coinbase in order to accept Bitcoin and GoCoin for Dogecoin and Litecoin. They accept the cryptocurrencies and convert them to cash, so we never touch them. This shields us and our brands from the market fluctuations and other risks associated with taking cryptocurrencies as a payment option.
Q. Is Bitcoin and cryptocurrency a trend that's taking off due to privacy and cost efficiency?
T.R. I think both cost and privacy play a role for many merchants, including eGifter. Given the risks for online merchants relating to “card-not-present fraud,” and the very low margins in our business, the prospect of a fraud-free transaction at a cost of only 1percent compared with over 2 percent and higher for credit cards is a very attractive alternative.
There is also a very passionate community who supports cryptocurrencies for the inherent privacy it offers and the potential for crypto currencies to revolutionize payments is also driving adoption
Q. What else do you see on the horizon for bitcoin payment and other variables in the payment system for business owners?
T.R. One of the biggest advantages to accepting Bitcoin and other cryptocurrencies is that it has attracted a whole new market of early adopters to our application and marketplace. These communities are eager to find new and creative ways to spend their coins.
Thank you to Tyler for sharing his experience with Bitcoin and cryptocurrencies. You may find more information about Bitcoin and payment options on their website.