$63M Investment Fuels Raise’s Blockchain-Powered Smart Cards

Raise, a Chicago-based gift card marketplace, secured $63 million in funding led by Haun Ventures and backed by Paypal to expand its blockchain-based Smart Cards system, the company announced this week.

Paypal-Backed Raise Raises $63M; Aims to Revolutionize Gift Cards via Blockchain

The funding round, which included Accel, New Enterprise Associates and others, brings Raise’s total raised capital to over $220 million. The company says proceeds will enhance security and programmability for gift cards through blockchain tokenization, aiming to reduce fraud and enable smart contracts for usage conditions.

Smart Cards convert physical or digital gift cards into blockchain tokens, creating immutable transaction records. Raise CEO George Bousis said the decade-in-development technology addresses industry challenges like counterfeiting and interoperability. The system allows retailers to encode loyalty rewards or expiration dates directly into gift cards via smart contracts.

A portion of the funds will support the Retail Alliance Foundation, a nonprofit coalition partnering with Raise subsidiary BFG Labs to establish global blockchain standards for gift cards. The initiative seeks to unify retailers under a shared network, improving cross-brand compatibility and security.

Bousis emphasized the potential to transform gift cards into programmable “retail currency” that strengthens consumer loyalty. The move aligns with projections of the global gift card market surpassing $2.3 trillion by 2030.

While blockchain adoption may face hurdles like regulatory compliance, Raise’s partnerships with firms like Walletconnect and Polkadot aim to streamline integration. The company plans a nine-figure investment over several years to scale the ecosystem, positioning Smart Cards as a Web3 loyalty and payment tool.