Closed loop multicurrency gift card reduces fraud risks for Global retailers

The global gift cards market is expected to hit US$750bn by 2026 with growth of 15% a year. But for many retailers and those in the hospitality sector that have outlets in different territories using different currencies, most gift cards are single currency and therefore cannot be used across different countries and territories.

This results in retailers offering different products for each market bringing with it organisational and administration challenges as well as poor customer experience. Gift card usability is also often hampered by delayed settlement times, poor security leading to fraud and single currency and market restrictions.

A new ground-breaking multicurrency closed-loop gift card product has been created to solve this issue by retail loyalty and digital marketing company Tranxactor, working with technology company Kornchain which will use blockchain to create efficiencies, speed of transaction and cross-border usability.

CEO of Tranxactor, John Norrie explained the benefits of such a product: “This closed-loop multi-currency product will deliver the flexibility of scheme-based products for cross-border usability, but with a simple consumer-friendly mobile application for lower cost transactions, fast settlement and all with the security that a blockchain brings will be a gamechanger. The blockchain system provides security, speed, transparency and functionality including the protection of customer data.”

Tranxactor provides retail loyalty programmes, gift cards, stored value payments and savings clubs in Australia, New Zealand, Europe and the UK, and so is very aware of the opportunity for a closed-loop multi-currency product.

“There are huge advantages for the consumer,” said Norrie, “if they can use just one gift card as a method of payment, regardless of where they are travelling. It will also save a lot of work for larger organisations working in multiple countries. One gift card product can be offered, allowing the consumer to redeem in any specified currency.”

Animesh Ghosh, CEO of technology company Kornchain said:

“We are developing a suite of products to work on a blockchain and Tranxactor’s concept for a closed-loop multicurrency giftcard will be one of our first to market. We are extremely proud to be working with Tranxactor as this concept illustrates the many advantages of blockchain in retail, hospitality and indeed many other businesses where there is a need to transact and exchange value.”