Gift cards have gone well beyond their original purpose of gifting; they can support user acquisition, provide instant rewards, and enable immediate payouts – eliminating settlement delays. This versatility makes gift cards a valuable tool for driving engagement and customer loyalty.
In an era where flexibility, scale, and user experience define the success of corporate payment strategies, open loop gift cards have emerged as a powerful tool.
More than just a way to reward staff or incentivise customers, these cards offer enterprise leaders a pathway to deliver seamless, brand-aligned experiences—without being locked into a single ecosystem.
In this article we’ll cover what open loop gift cards are, and how your business can harness them for greater agility and efficiency. Let’s break it down.
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Open loop gift cards are prepaid payment cards backed by major networks like Visa or Mastercard. Unlike their closed loop counterparts—which can only be used at a specific store or group of stores—open loop cards work wherever the card network is accepted. Think of them like a debit card without the bank account. They're preloaded with funds and ready to use at millions of locations, online and in-person.
For example, a company might issue employees a branded Mastercard gift card as a performance bonus. That card can then be used to pay for groceries, travel, or dinner out—anywhere that accepts Mastercard.
In short: closed loop gift cards are great for retailer promotions. But open loop gift cards are built for versatility—making them far more suitable for corporate applications.
At a glance, open loop programs might seem simple: load money onto a card, and distribute them. But under the hood, there’s robust infrastructure powering these programs—particularly when delivered at enterprise scale.
Here’s how it typically works:
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The appeal of open loop gift cards goes far beyond convenience. For enterprises, these programs unlock several strategic advantages:
Because open loop cards work across any merchant that accepts the card network, they eliminate the friction of recipient preference. There’s no need to guess what your employees or customers might value. They can choose for themselves. This makes the cards universally appreciated—and highly effective as incentives.
With the ability to use the card wherever, recipients enjoy a frictionless experience. Many platforms also offer mobile wallet support, so users can tap and pay just like they would with a regular card. That consumer-grade experience reflects well on your brand.
Whether you're launching a rewards program across the UK, Europe, or globally, open loop cards scale with ease. No need to deal with regional retailer restrictions or logistics headaches. It’s one infrastructure, one card network, one global standard.
From a finance and operational perspective, open loop cards can streamline processes and reduce overhead. No chasing bank details. No fiddly reimbursements. Just load, issue, track.
With great flexibility comes a need for compliance. Enterprise leaders must ensure any gift card program meets relevant financial regulations—especially when operating across jurisdictions.
Each region has its own rules. In the EU, e-money regulations apply. In the UK, open loop cards may fall under the FCA’s oversight. For international programmes, you'll need to navigate multiple compliance frameworks.
This is why working with a regulated partner is essential.
Edenred Payment Solutions offers the full package for enterprises looking to implement open loop gift card programs at scale. As a trusted card issuer with deep regulatory expertise, we provide:
Whether you’re looking to build a customer loyalty engine, digitise your employee perks, or streamline reimbursements, we can help you design a scalable, compliant, and future-ready solution.
Explore our embedded card issuing solutions.
Open loop gift card programs are no longer a niche offering—they’re a strategic lever for enterprise growth. With the ability to offer use-anywhere rewards, automate payouts, and enhance the cardholder experience, they present a modern, flexible solution to a wide range of business challenges.
For enterprise leaders looking to stay agile, meet rising expectations, and deliver seamless experiences, open loop gift cards are well worth considering.
With the right infrastructure—and the right partner—you can launch a program that’s secure, compliant, and primed to scale.
Take your gift card strategy to the next level
Talk to our team of experts and explore how we can help you unlock new channels to distribute your gift cards and capitalise on the opportunity.