Gyft, an online gift card and loyalty program management company has been accepting bitcoin payments for a while now. People can use bitcoin to buy gift cards for various online as well as brick and mortar shops like Amazon, Target, Best Buy, Starbucks etc. which do not accept bitcoin payments. These gift cards offers an alternative way for users to purchase in these shops with bitcoin.
Since the introduction of bitcoin payments in 2013, Gyft has for the first time reported a huge decline in bitcoin usage on the platform. During the initial days, Gyft received bitcoin payments for over 90 percent of the orders while other conventional payment methods like credit cards and PayPal made up for the rest 10 percent. However, the scenario seems to have changed drastically now. Compared to those days, total bitcoin payments have reduced by over 80 percent, accounting for only 10 percent of sales on Gyft platform.
The main reasons for the fall in bitcoin payments on the platform can be attributed to various factors. The number of online and offline stores accepting bitcoin payments have increased since Gyft started accepting bitcoin payments. Also, there are many other players in the market, offering services similar to Gyft. Some of these services include Fold and CardCash. Another reason for drop in bitcoin payments in the recent drop in bitcoin prices. Many bitcoin users prefer not to spend the bitcoin they have when prices goes low for obvious reasons. They would prefer to wait till the prices again go up, at least close to the value at which they would have received those bitcoins.
In spite of experiencing the drop in bitcoin payments, Gyft is heavily invested in blockchain technology that powers the bitcoin network. The company will soon be launching Gyft Block, a gift card trading platform built on blockchain technology. Gyft Block is developed in partnership with Chain and API developer. It will offer a neutral third party technology instead of proprietary databases generally used by gift card companies.
I see, I think and I do… passionate about digital currency, start-ups and social good. I believe that if you mix them right, you can change the world. Find me @gautham_n on twitter or /gautham,nm on facebook
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