Netflix to Turn to Bitcoin to Fight Gift Card Fraud Crisis

Author: GTong

At the recent Internet, Media & Communications Conference held by Citibank, David Wells, Chief Financial Officer of Netflix, the world's largest online video rental service, expressed his optimism about the future of Bitcoin and explained how Bitcoin is gradually becoming the currency of choice in some major industries.

“It would be wonderful if Bitcoin could be used as a universal currency around the world,” Wells said.

Why is Netflix interested in Bitcoin?

Netflix has launched many popular dramas in recent years, but has been constantly defrauded by criminals in terms of finance through gift cards and prepaid card payments, which is why they are eager to use Bitcoin for payment.

Unlike many video sites, Netflix has always provided users and content creators with multiple forms of payment, including traditional payment methods such as bank cards, as well as prepaid payments, gift card payments, etc.

If users come from countries with insufficient financial services such as Argentina or India, or are under the age of 18 and unable to apply for bank cards, they can purchase Netflix gift cards at some gas stations and convenience stores to complete the payment.

In June 2015, Libran Research & Consulting and prepaid merchant service provider CashStar jointly released an article titled "Gift Cards Through the Eyes of Consumer" to analyze the gift card industry and its ecological layout.

Data from the report shows that gift card sales exceeded $129 billion in 2015.

However, as with other financial instruments, rapid growth is also accompanied by a rapid increase in fraud cases.

Tony Martin, a cryptocurrency expert, pointed out in the report that it is not difficult for hackers to break through the security barriers of gift cards and operate on the balance to double it. Some hackers with superficial security knowledge can do it.

As a result, Netflix’s finance team and CFO David Wells turned to Bitcoin as a viable, cost-saving payment alternative to gift cards.