Amaten, the largest gift card company in Japan, has recently started a new partnership with Aelf, a blockchain firm. Now, the two companies will band together in order to provide blockchain-based gift cards to their clients.
The plan is to create a framework that would be used to tokenize gift cards and let people use them via a blockchain-based platform. This way, people will be able to easily track them, which can end up decreasing fraud in the sector.
According to Tom Kanazawa, the chairman of Amaten, the current system was never really evolved. The digital revolution changed the world some time ago and the industry continued to be stale. Now, the company will have to evolve together to remain competitive and offer a better service to its customers.
Kanazawa also affirmed that the current system has some very basic flaws and that they make it really inconvenient for people to use the system. This is, he believes, the perfect use case for the blockchain technology.
The gift card industry is huge in Japan. According to the official data, it is a $21 billion USD industry locally. However, the global market is worth $340 billion USD. This means that Amaten will initially focus on Japan, but the company is ready to move forward internationally after some time.
With the upgrade, the company is expected to hold its position as the leader of the industry, its chairman affirms. At the moment, Amaten holds 70% of the market, so only extreme staleness could ruin the dominance of the company.