There is a Huge market to sell KO gift card with Alpha User Points = giftcard value
One post into Alpha User Point forum and your sells for this would boost significantly. I will help spread the word and fund your time as a donation. (be gentle on the $ demands though lol)
You would need, it seems:
1.) an admin field input to determine ratio of points to $1, such as numeric 10 entered equals 10 points to $1
2.) input field for how many points they want to use towards this purchase
3.) query to verify the points are available, if true continue, if false error message
4.) points entered should be divided by ratio field entry from admin form equals 'cash value' deduction "discount"
5.) If 'cash value' less than $price, deduct and move to paypal for payment
6.) If 'cash value' is equal to or more than $price, proceed to send gift card
7.) If send successful, deduct points up to $price(ratio field) from alpha user points
In future builds it would be nice for step 2.) to already have pulled points available to be used into the field, but allow them to lessen that amount if they chose to NOT use them all.