Introduction

The gift card industry has grown significantly, with billions of dollars in transactions occurring annually. However, a major issue persists – many gift cards go unused, leading to substantial unredeemed balances. Consumers often receive gift cards they don’t use, while businesses lose potential revenue from inactive funds.

Secondary marketplaces have emerged to address this issue, allowing users to sell and buy gift cards at discounted rates. These platforms provide liquidity for gift cards and offer consumers a way to maximize savings. One of the most prominent platforms in this space is Raise, which has expanded its role by integrating advanced payment solutions and blockchain technology.

What is Raise?

Source: Raise website

Raise is an online marketplace that facilitates the buying and selling of gift cards. Launched in 2013, it provides a platform where users can sell unwanted gift cards for cash and purchase discounted gift cards from various brands. This model enables consumers to save money while ensuring that gift card balances are fully utilized.

The company has developed a secure and efficient system that verifies transactions, reducing fraud risks in the secondary gift card market. Over the years, Raise has expanded its services, introducing features like the Raise App, API integrations for businesses, and blockchain-powered Smart Cards to enhance transaction security and flexibility.

With strategic investments and technological advancements, Raise has positioned itself as a digital gift card industry leader, bridging the gap between traditional gift cards and modern digital payments.

History and Evolution

Source: Website

Raise was founded in 2013 by George Bousis as a solution to the widespread issue of unused gift cards. The idea behind the platform was to create a secondary market where consumers could sell unwanted gift cards for cash and buyers could purchase them at a discount. The goal was to maximize the utility of gift cards and reduce the waste associated with unredeemed balances.

In its early years, Raise secured significant venture capital funding, which fueled its expansion. In 2014, the company raised $18 million in Series A funding from investors like Bessemer Venture Partners. This allowed Raise to develop its technology and expand its network of retailers. By 2015, it had completed a Series B funding round of $56 million led by New Enterprise Associates, further solidifying its growth in the gift card industry.

Raise quickly became a major player in the digital payments space. The company introduced a mobile app, making it easier for users to buy and sell gift cards on the go. It also expanded its partnerships with retailers, offering direct savings to consumers. Over the years, Raise refined its business model, adjusting its commission structure and adding security measures to protect transactions.

In 2025, Raise took a major step by integrating blockchain technology into its platform. This move aimed to enhance security, reduce fraud, and create a more transparent marketplace for gift cards. The company also launched the Retail Alliance Foundation, a nonprofit coalition focused on standardizing and securing digital gift cards.

With over a decade of growth, strategic investments, and technological advancements, Raise has positioned itself as a leader in the gift card marketplace, adapting to industry changes and expanding its offerings to remain competitive.

Business Model

Raise operates as an online marketplace where users can buy and sell gift cards. The platform provides a structured environment for transactions, ensuring security and reliability for both buyers and sellers. Its business model is built around commission-based revenue, strategic partnerships, and expanding digital payment solutions.

How Raise Works

Raise connects individuals who want to sell unused or unwanted gift cards with buyers looking for discounted options. Sellers list their gift cards at a price they set, typically below face value. Buyers can browse through various retailers and purchase these discounted gift cards for personal use or as gifts. Raise takes a percentage-based commission from each sale as its primary source of revenue.

Revenue Model

Raise generates revenue through:

• Commission Fees: The company takes a 12% commission from sellers on each transaction.
• Affiliate Partnerships: Raise collaborates with major retailers to offer direct discounts and cashback rewards, earning a portion of each transaction made through the platform.
• Premium Services: The platform offers features like expedited payment processing and promotional tools for sellers who want to optimize their listings.

Security and Fraud Prevention

Raise has implemented security measures to reduce fraud and ensure safe transactions:

• Verification Process: Gift cards are checked for validity before being listed.
• Money-Back Guarantee: Buyers receive protection in case a purchased card is invalid or has an incorrect balance.
• Blockchain Integration: With the adoption of blockchain technology, Raise has enhanced the traceability and security of digital gift cards, reducing the risk of fraud.

Scalability and Market Expansion

Raise continues to expand its marketplace by increasing the number of supported retailers and enhancing its technology. The company is also focusing on blockchain-powered “Smart Cards,” which aim to improve transparency and efficiency in the digital gift card space.

This business model has allowed Raise to establish itself as a leading player in the secondary gift card market while exploring innovations that align with the broader trends in digital payments.

Blockchain Integration

Raise has integrated blockchain technology into its platform to improve security, transparency, and efficiency in the gift card industry. This development is a response to common issues in traditional gift card systems, such as fraud, lost balances, and limited traceability. The introduction of blockchain-powered “Smart Cards” marks a significant shift in how digital gift cards function.

Why Blockchain?

Traditional gift card systems rely on centralized databases, which can be vulnerable to fraud, hacking, and unauthorized duplication. Additionally, tracking balances, transfers, and redemptions across multiple retailers can be inefficient. Blockchain addresses these issues by providing:

• Immutable Transactions: Every transaction is recorded on a distributed ledger, preventing unauthorized modifications.
• Enhanced Security: Smart Cards reduce fraud risks by ensuring that transactions are verifiable and traceable.
• Decentralization: Instead of relying on a single entity, blockchain technology ensures that gift card data is managed transparently across a secure network.

Introduction of Smart Cards

Raise’s Smart Cards leverage blockchain to function as programmable digital assets. Unlike traditional gift cards, Smart Cards offer:

• Real-Time Balance Updates: Transactions update instantly on the blockchain, reducing errors and discrepancies.
• Increased Transferability: Users can transfer, split, or resell Smart Cards with greater flexibility.
• Retailer Customization: Businesses can program Smart Cards to include rewards, expiration conditions, or special discounts.

Impact on the Gift Card Industry

By integrating blockchain, Raise aims to set a new standard for digital gift cards. The technology minimizes fraud risks, increases user control over assets, and enhances interoperability between retailers. This system also benefits businesses by reducing administrative costs associated with managing traditional gift card programs.

Raise’s blockchain integration positions it as a leader in digital payments, bridging the gap between traditional gift card systems and emerging decentralized finance (DeFi) solutions. The company continues to expand its blockchain-powered offerings, strengthening its role in the evolving digital economy.

Raise’s Product Offerings

Source: Website

Raise provides a range of products that cater to both consumers and businesses, streamlining gift card transactions and integrating advanced payment solutions. These offerings support the platform’s goal of increasing flexibility, security, and efficiency in digital payments.

Raise App (Consumer Offering)

The Raise App allows users to earn and redeem Raise Cash at partnered brands. It provides a centralized platform for purchasing, storing, and using discounted gift cards, giving consumers direct savings on everyday purchases.

API Solution (Business Offering)

Raise offers an API Solution for businesses looking to automate gift card transactions, loyalty programs, and payment processing. This integration enables companies to enhance customer engagement and streamline digital transactions.

GCX (Gift Card Exchange)

GCX serves as the largest marketplace for buying and selling discounted gift cards. The platform enables users to list unwanted gift cards for sale while allowing buyers to purchase them at reduced prices, increasing liquidity in the secondary gift card market.

Smart Card (Coming Soon)

The Smart Card is an upcoming blockchain-powered product designed to introduce a personalized retail experience. It aims to enhance consumer-brand interactions by enabling customized spending options, programmable rewards, and secure transactions.

Recent Developments

​In February 2025, Raise secured $63 million in a funding round led by Haun Ventures, bringing its total funding to over $220 million. This investment is earmarked for further development of its blockchain-based Smart Cards and the expansion of the Retail Alliance Foundation, a nonprofit coalition focused on creating a more secure gift card network.

The funding round also saw participation from notable investors such as Amber Group, Anagram, and GSR, highlighting the confidence in Raise’s vision and technological advancements. ​

In December 2024, Raise expanded its services to Canada, introducing consumers to the Raise App, a platform where they can shop and save with their favorite brands. This expansion signifies Raise’s commitment to broadening its market reach and providing innovative solutions in the digital payments space.

These developments underscore Raise’s commitment to innovation and its strategic efforts to enhance its platform, expand its market presence, and solidify its position as a leader in the digital gift card industry.

Conclusion

Raise has established itself as a key player in the digital gift card industry by providing a marketplace where users can buy and sell gift cards securely. Since its launch in 2013, the company has expanded its offerings, secured major investments, and introduced blockchain-powered Smart Cards to enhance security and efficiency.

The platform’s business model, which generates revenue through commission fees and retailer partnerships, has allowed it to scale while addressing common issues in traditional gift card systems. The recent $63 million funding round reinforces investor confidence in Raise’s vision and its potential to further innovate in the digital payments space.

By integrating blockchain technology, Raise has positioned itself at the forefront of the evolving gift card industry. The company continues expanding its services, improving fraud prevention, and providing greater flexibility for consumers and businesses. As digital payments and decentralized finance grow, Raise will likely play a significant role in shaping the future of gift card transactions.