California-based digital currency exchange Coinbase has collaborated with London-based startup WeGift to introduce a gift card service that would allow cryptocurrency holders to directly use their virtual assets for purchasing products.
According to WeGift’s recent blog post, customers will now be able to buy products and services from retailers like Nike, Uber, and Google Play, using their cryptocurrency holdings from their Coinbase account. For instance, users can now convert their cryptocurrency into Uber Credits or Nike shopping spree, allowing them to use their digital assets as tender on a daily basis.
WeGift cards are currently accepted in more than 120 retail outlets, allowing cryptocurrency users to purchase a variety of products from a number of stores where WeGift is accepted. To further promote the new service model, Coinbase has also waived its withdrawal fees for those either purchasing the e-gift cards or selected e-gifts offered by retail companies. According to Coinbase’s announcement, the gift card service will be available to even more markets in the next three months, with plans of expanding its launch to users in other parts of the globe currently not included.
For now, the service is limited to a number of territories, including Australia, Spain, Italy, France, UK, and the Netherlands.
The newly launched service follows a previous initiative also piloted by Coinbase in 2013 to introduce an online gift service in partnership with New York-based gift card platform eGifter. However, the new service sets itself apart as it marks the first time in the crypto sphere that a digital currency exchanged has offered “direct withdrawals into e-gift cards.”