Microsoft will be adding the option for consumers to utilise gift cards on the Windows Store and Xbox Live, but the company has already enabled the payment gateway on the Windows Phone Store. Adding a gift card to the Wallet, a feature in Windows Phone 8, smartphone owners can use the cards to charge app, music and media purchases.
It's similar to the current Microsoft Account system, where people can redeem codes to add to their balance e.g. Bing Rewards in the US or the $25 Store credit for the Verizon Lumia 928. This new option though is specially handy for those who would like to purchase a physical prepaid gift card for someone who owns a Windows Phone (much like Apple App Store cards).
A few weeks ago, the Verge detailed the upcoming Gift Card system, which is replacing the current usage of Xbox and Microsoft Points (see above image).
Remember to keep your Wallet safe, even on a Windows Phone. Be sure to check out our quick guide to securing your payment gateways. We'll keep an eye out for when the option for gift cards is available on Windows Store and Xbox Live.