The gift card sector in the US alone was estimated at $149 billion in sales in 2017. It is expected that the sector will only get bigger in 2018. In fact, this growth is expected to proceed well into the future. This has presented an opportunity that one company, KUSB, has decided not to pass up. Besides that, the industry is expected to evolve with opportunities being created for expansion into new markets.
The Crypto Connection
Crypto is a new area in the fintech industry, which has experienced a lot of growth in the past few years. One of the major barriers to crypto adoption is just how complicated it can be to acquire crypto compared to fiat money.
There are various ways to acquire crypto, and none is simple. One way to get your crypto is to buy it at an exchange. Besides that, you can arrange a sale with another party to get their crypto. Additionally, you can mine crypto, which entails setting up a complex rig and ensuring it operates at optimal capacity. Lastly, you can offer services and are paid in Bitcoin.
To store or use your Bitcoin, you can use the exchange account, a desktop or mobile application, or a hardware wallet. The creators of this project wanted to find out a way that would make it simple for first-time users of Bitcoin to find their way around the coins.
KUSB Bitcoin Gift Cards On USB Cold Storage Wallets Works
KaiUSB is a startup that wants to bring about the idea of crypto gift cards, using Bitcoin. They will offer a USB soft-hardware wallet that contains ETH or BTC at the time of purchase. The crypto gift cards look like a USB flash drive. However, it has software on it, which accepts an activation code. After that, it sets up the software wallet, which allows customers to spend the balance, just like a gift card.
This idea could prove quite useful in simplifying crypto purchases. It may become a popular way to acquire the Bitcoin compared to the two common methods. The other two are getting coins from an exchange or arranging a purchase on sites such as Localbitcoins.com.
Another benefit of the crypto gift cards is that they are quite safe compared to using the usual gift card. When the payment is made, the user will not have to worry about credit card numbers being stolen or intercepted, leading to loss of the gift card balance. Sending crypto payments will never reveal a private key or the password during the purchase. Thus, as long as you secure this data, the funds cannot be stolen. Besides that, the crypto gift card will not have any maintenance fee like some of the normal gift cards.
In the future, it might be reasonable to expect that this idea proves quite successful. It offers all the benefits of gift cards with none of the downsides. KaiUSB already has a plan in place to collaborate with physical retailers by the end of 2018 to bring this product to the market.