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The Blackhawk Network has entered the digital card space with the launch of Visa- and Mastercard-branded e-gift cards that can be used in-store and online.
The launch builds on consumers’ growing preferences for QR-code and tap-to-pay technology, the prepaid card company says, as both technologies help streamline the payment process and help reduce the risk of fraud by encrypting card numbers. The cards are being issued through Pathward N.A., a Sioux Falls, South Dakota-based bank.
To help ensure security, packaging for the cards does not contain a physical card, but rather a QR code that when scanned at the point of sale activates the card. Upon scanning the code with a mobile device consumers can load the funds directly to their digital wallet for immediate use online or in-store using tap-to-pay terminals.
The Blackhawk network is making the cards available at more than 15,000 locations nationwide. Retailers carrying the card include The Kroger Co., Wegmans Food Markets Inc., and Weis Markets.
Research by Blackhawk Network reveals that consumers prefer to pay with digital methods that do not require carrying a physical card.
“Many customers want the convenience of adding gift card funds directly to a mobile wallet, a key factor that informed the product’s design,” a Blackhawk spokesperson says by email. “By prioritizing secure, mobile-first solutions, we’re addressing growing consumer demand for products that integrate seamlessly into everyday digital interactions.”
Blackhawk says it designed the cards to minimize the risk of fraud by encrypting the card’s numbers for each transaction.
“Since there is no readable card number for potential theft, the product inherently offers more security against tampering and fraud,” the Blackhawk spokesperson says. “This innovation is part of our broader BHN Protect program, which enhances the security of both digital and physical gift cards.”
The tamper-evident packaging housing the cards was developed as part of the BHN Protect program, the company adds.
