Gift cards have come a long way since the paper certificates of the 1930s. Once seen as a last-minute gift option, they’ve evolved into a strategic growth engine. Back in 2023, the UK gift card and incentive market was already valued at £7.4 billion - and it’s expected to keep growing as businesses and consumers embrace new ways to pay, reward, and budget.
If your business isn’t investing in a strong gift card program, you’re leaving revenue and loyalty on the table.
This guide combines insights from our decades-long market experience to help you design, launch, and optimise a program that creates value for both your customers and your business.
Why gift cards deserve a seat at your strategy table
Gift cards are a profitable marketing tool. Let’s take a look at some of the most valuable advantages they offer:
- Brand visibility: Each card acts as a miniature billboard in your customers’ wallets or inboxes.
- Cash flow: Revenue from gift cards is recognised upfront, even before redemption.
- Customer acquisition: Gift cards are a proven way to bring in new customers.
- Upsell potential: In 2023, 43% of gift card users spent more than the value of their card, with an average overspend of £10.
- Budgeting appeal: Consumers increasingly buy cards for themselves to manage spending. With your gift card in their hands, you’ve already guaranteed repeat business.
Key components of successful gift card programs 
A simple overview of the key components to consider when building a gift card scheme ⬇️
Start with strategy, not just SKU counts
A standout program requires treating gift cards like a core product.
That means:
🔷 Customer-first design: Make purchase and redemption friction-free for every demographic.
🔷 Brand consistency: Your card design, messaging, and packaging should reflect your brand identity.
🔷 Lifecycle planning: Evergreen URLs and flexible T&Cs simplify long-term management.
🔷 Channel segmentation: Adjust expiry dates, margins, and packaging for B2C and B2B audiences.
🔷 Data-driven decision-making: Tie card registration to perks, unlocking insights into buying behaviour.
Choose the best gift card type for your business
Selecting the right gift card type determines your reach and compliance needs.
Here’re 4 common types of gift cards to help you select the best one for your business:
Closed-loop 👉 Gift cards are redeemable only with your brand; ideal for loyalty and upselling.
Open-loop 👉 Gift cards usable anywhere the specific card scheme (e.g. Visa/Mastercard) is accepted; great for flexibility but regulated.
Restricted-loop 👉 Perfect for shopping centres or multi-brand environments.
Implied-loop 👉 Marketing-led guidance on redemption without technical limits.
Build an omnichannel experience for your gift cards
Customers want flexibility and they’re proving it with their spending habits. In 2023, 28.6% of monthly gift card shoppers opted for digital, up from 26.5% the year before. While digital adoption is climbing steadily, physical cards remain important.
💡Successful programs create a seamless experience across both formats.
For example, if a physical card works both online and in-store, the digital version should match that flexibility. Distribution across multiple channels (like your website, stores, and third-party retailers) maximises visibility and reach.
Additionally, incorporating mobile wallet integration, push notifications, and in-app gifting can make gift cards a dynamic part of the customer journey rather than a static product.
Seize the B2B opportunity for gift cards
While most gift card programs focus on B2C, B2B channels present a significant opportunity and can dramatically expand your reach. The UK B2B incentives and rewards market is worth billions annually, and brands that tap into it benefit from repeat high-volume orders.
A few points to keep in mind when expanding into B2B channels:
- Offer simple bulk-buying and fulfilment
- Work with trusted distributors to maintain brand standards
- Use redemption data to refine offers and forecast demand
- Build fraud and KYC/KYB controls into the process
Drive business growth through strategic gift card partnerships
Watch this webinar on demand⬇️
Select the right partner for scale and efficiency
Running a gift card program in-house can be resource-intensive. Partnering with processors and distributors can simplify integration, distribution, and compliance, allowing internal teams to focus on strategy and growth.
🔷 Processors handle technical integration, transaction tracking, and infrastructure management.
🔷 Distributors extend your reach, ensure brand consistency, and provide market insights.
Choosing the right partners can save time, reduce risks, and unlock revenue streams that would be difficult to achieve internally.
Thinking about working with distributors? 
Check out our top tips to selecting the right one ⬇️
Optimise post-launch
A “set and forget” approach limits your program’s potential.
Use the 5 Ps framework to optimise performance:
🔷 Product: Refresh designs and formats.
🔷 Promotion: Market gift cards across all channels.
🔷 Placement: Make buying easy and visible.
🔷 Price: Adjust margins or incentives to encourage purchase.
🔷 People: Train staff to promote gift cards effectively.
Consistently analysing these areas drives both profitability and customer satisfaction.
Build a gift card program that is secure 
Tactics to protect your business from gift card fraud ⬇️
Final thoughts
Gift cards have become a lever for growth, combining marketing, loyalty, and revenue generation. By blending a strong user experience, smart partnerships, thoughtful design, brands can create a program that meets customer expectations and drives sustainable results.
Level up your gift card scheme
If you're ready to launch or optimise your gift card program, explore how Edenred Payment Solutions can help you get there faster and with full confidence.
