3rd party distribution for gift cards | Edenred Payment Solutions

Gift cards have become a powerful tool for driving revenue, increasing brand awareness, and deepening customer engagement. While direct-to-consumer sales are essential, expanding into third-party channels - such as malls, online marketplaces, and B2B programs - can significantly enhance your reach and sales potential.  

During our recent webinar, we discussed the opportunities and challenges that come with this expansion. A well-executed 3rd party strategy can help you acquire new customers, increase brand exposure, and drive incremental sales. However, success isn’t just about making your gift cards available in more places - it requires thoughtful planning and execution.  

In this blog, we’ll take a look at five key considerations to keep in mind when expanding your gift card program to third-party channels. 

Top considerations for expanding your gift card program  

Define your goals and audience
Before diving into third-party distribution, it’s crucial to define your goals. Are you looking to increase brand visibility? Drive customer acquisition? Boost holiday sales? Your objectives will shape your approach. 

Additionally, consider who your ideal gift card buyers and recipients are. Different third-party channels attract different customer segments.  

For example: 

• Retail distribution can increase exposure among impulse shoppers or last-minute gift buyers. 

• Online marketplaces provide convenience and can attract digital-savvy consumers. 

• B2B programs, such as corporate incentives and employee rewards, can open doors to bulk sales and repeat business. 

• Fintech platforms can lead to new customer bases and increase your brand visibility. 

Understanding these nuances will help you identify the right distribution partners and optimise your program for maximum impact. 

Choose the right distribution partners 
Not all third-party channels are created equal, and choosing the right partners is critical. When evaluating potential distributors, consider: 

• Brand alignment – Does the retailer or platform align with your brand identity and target audience? 

• Reach and demographics – Will the channel expose your brand to new customers or deepen engagement with existing ones? 

• Digital vs. physical card support – Some channels specialise in digital gift cards, while others focus on physical gift card products. Understanding their strengths ensures your offering fits their capabilities. 
• Marketing and promotional support - Look for partners that can help amplify your brand through promotions, email campaigns, or seasonal features.  

Selecting partners strategically will ensure that your gift cards are placed in channels that drive meaningful sales rather than just increasing distribution for the sake of it. 

Optimise margins and economics
While third-party distribution can significantly increase sales volume, it also comes with additional costs. Retailers, marketplaces, and B2B programs often take a percentage of sales or require participation in promotional discounts.  

Some key financial considerations include: 

• Wholesale vs. commission-based models – Some partners may require you to sell cards at a discount in bulk, while others take a percentage of each sale. 

• Promotional costs – Participation in featured placements or seasonal promotions can drive sales but also impact margins. 

• Breakage impact – Unused gift card balances (breakage) are a financial factor. Expanding to third-party channels may influence your breakage rate based on customer behaviour and redemption trends. 

Balancing volume, profitability, and customer acquisition costs is key to making your third-party gift card program financially sustainable. 

Ensure seamless integration and fraud prevention
Expanding into new channels means integrating with different platforms, each with its own technical requirements and security considerations. Ensuring a seamless and secure experience for both customers and partners is essential.  

Key areas to focus on include: 

• API and platform compatibility – Make sure your gift card program integrates smoothly with third-party sales and redemption methods. 

• Real-time balance tracking – Providing instant updates on gift card balances reduces friction for customers and improves the redemption experience. 

• Fraud prevention – Gift card fraud is a growing concern. Implement security measures such as unique PINs, activation controls, and fraud monitoring tools to mitigate risks. 

• Customer support readiness – Expanding to third-party channels means handling inquiries and potential issues across more touchpoints. Ensure your support team is prepared to manage new customer interactions. 

A strong operational foundation will not only streamline expansion but also protect your brand and customers from potential risks. 

Maintain brand control and customer experience
Your gift card program is an extension of your brand, and consistency is key—regardless of where the card is purchased.  

When working with third-party channels, consider: 

• Branding and packaging – Ensure that your gift cards, both digital and physical, maintain a consistent look and feel across all distribution points. 

• Marketing messaging – Communicate clear terms of sales to third-party sellers to ensure that the gift card usage and promotional material aligns to your brand ethos. 

• Redemption experience – Make it easy for customers to use their gift cards, whether online or in-store. A complicated redemption process can lead to frustration and lost sales.  

Even when selling through external partners, you want customers to have a seamless, branded experience that reinforces your company’s value and trustworthiness. 

Partnering with Edenred Payment Solutions

As a leading gift card processor, we help brands like yours to unlock new revenue channels through a single integration. Our native connections to both B2B and B2C channels enable seamless expansion, allowing you to maximise reach and drive growth.  

With over 20 years of experience and an award-winning team, we’re here to accelerate your strategy and help you achieve your goals faster. 

Conclusion

Expanding your gift card program into third-party channels presents significant growth opportunities—but only if done strategically. By carefully selecting partners, optimising financial models, ensuring operational efficiency, and maintaining brand consistency, you can maximise the benefits of third-party distribution while avoiding common pitfalls. 

If you missed our recent webinar on this topic, be sure to check out the recording for additional insights and real-world examples.  

Ready to maximise your gift card potential?

If you’re considering expanding your gift card program, we’d love to help! Reach out to our team to explore the best approach for your business.