The official use of the challenge coin started from World War 1. The need of challenge coins arose due to an aircraft event, and then the issue of identity arose. To tackle this problem, challenge coins came into use by all the military forces to identify their soldiers. Identity is one of the most important elements of the war, and this is possible through challenge coins.

If you unable to identify your friend and foe, you can never be able to win the war. In another way,  it is also important to encourage the soldiers and to define the ranks of your soldiers. Now these coins are equally important for businesses as well. These challenge coins are being used to promote the brand and sales of business. Even in the social events, these challenge coins are also used in the place of business cards.

Their most important role can be seen in the businesses in the promotion of their product and brands. The business owners are offering these coins as a gift for those customers who purchase a certain amount of goods from their store. It also works as a reminder for their customer to visit again. It is also easy for a customer to refer your store to any other potential customer who wants to purchase the similar kind of product.

Organizations are also using these challenge coins to appreciate their employees who work hard and total commitment and devotion, and also accomplish their business tasks better than others. Looking this, other employees of the organization work hard to achieve the same reward. In this competitive environment,  the sale of business automatically increases. These challenge coins have become the essential part of business organizations, schools, colleges and being used in almost all the organizations of the world.