Silicon Valley-based bitcoin tipping company ChangeTip has entered into a partnership with Gyft to enable its users convert cryptocurrency tips into gift cards that can be used to purchase physical goods. The move will now allow its users to buy coffee from Starbucks using their gift cards with accumulated tips on it.
To date, ChangeTip users were able to use their bitcoin tips only by converting it into fiat currency. Now, they will be able to redeem their tips in the form of gift cards that can be used at brick and mortar shops within the United States. Besides Starbucks, Gyft can also be redeemed at iTunes store, Xbox store and Amazon, among others.
The denomination of gift cards range from $1 up to $2,000. ChangeTip also enables customers to offer doughnuts ($0.35), coffees ($1.50) and high-fives ($5) to other users as a tip.
Gyft is a rewards and loyalty program management company that let clients to acquire, send and manage their gift cards using their mobile devices. The gift cards can be bought via Gyft mobile app with the use of digital currency, PayPal or credit cards. The company’s Gyft Points program was launched in 2013 to reward customers for frequent use of their gift cards.
Earlier, ChangeTip participated in a successful non-profit project targeted at raising money for Nepal earthquake relief. Moreover, the company has recently partnered with non-profit organization Direct Relief to run a bitcoin fund raising campaign that is aimed at providing expecting mothers in developing countries with necessary supplements.
Another US-based gift card platform, called CardCash, plans to integrate payments in digital currency next month. The new bitcoin payment option is aimed at allowing people spend their virtual currency and save money at the same time.
CardCash decided to embrace bitcoin as they realized that many stores in the United States still do not accept cryptocurrency for purchases. The company has partnered with BitPay that will process bitcoin transactions and convert it to fiat currency.
The CardCash users are able to instantaneously buy gift cards via mobile application with the use of bitcoin and then make purchases at stores, like Walmart or Macy’s. The customers can also get a discount ranging from 5 to 20% on their purchases.
To prevent money laundering, the company has implemented special AML and fraud prevention measures. The maximum purchase limit of each gift card is $10000 per day, what will help to prevent misuse and keep control on money laundering.
Currently, the service is available only in the United States.