Raise secures $63M in funding, backed by PayPal, to expand its blockchain-based Smart Cards system, enhancing gift card security, programmability, and fraud prevention.
Raise Aims to Revolutionize the Gift Card Market With Smart Cards with Paypal
Chicago-based gift card marketplace Raise has secured $63 million in funding, led by Haun Ventures with participation from PayPal, Accel, and New Enterprise Associates. This latest investment brings Raise’s total funding to over $220 million, positioning the company to advance its blockchain-powered Smart Cards system.
Blockchain-Powered Gift Cards to Enhance Security
Raise plans to use the funds to enhance security and programmability in the gift card industry by leveraging blockchain technology. The company’s Smart Cards system converts physical and digital gift cards into blockchain tokens, ensuring immutable transaction records. This innovation aims to reduce fraud, improve interoperability, and enable smart contracts for setting usage conditions.
Raise CEO George Bousis highlighted that the decade-in-development technology addresses long-standing challenges such as counterfeiting and fragmented loyalty programs. With Smart Cards, retailers can encode loyalty rewards, expiration dates, and custom spending rules directly into gift cards, creating a more flexible and secure system.
Retail Alliance Foundation to Establish Blockchain Standards
A portion of the newly raised capital will support the Retail Alliance Foundation, a nonprofit coalition working alongside Raise’s subsidiary, BFG Labs, to establish global blockchain standards for gift cards. This initiative seeks to unify retailers under a shared network, increasing cross-brand compatibility and security while driving mainstream adoption of blockchain-powered gift cards.
Transforming Gift Cards Into a “Retail Currency”
Bousis emphasized that blockchain has the potential to turn gift cards into a programmable “retail currency”, strengthening consumer loyalty and engagement. This vision aligns with projections that the global gift card market will surpass $2.3 trillion by 2030.
While regulatory compliance remains a hurdle for blockchain adoption, Raise is working with industry partners such as WalletConnect and Polkadot to streamline integration. The company is planning a multi-year, nine-figure investment to scale the Smart Cards ecosystem, positioning it as a leading Web3 loyalty and payment tool.
What’s Next for Raise?
With strong financial backing and strategic partnerships, Raise is set to redefine how gift cards are issued, managed, and redeemed. As blockchain adoption in retail grows, Raise’s Smart Cards could become a key driver in the transition toward decentralized, fraud-resistant payment systems.
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