Choose The Right Type of Gift Card For Reward & Payout Programs

Though they may look straightforward, the types of gift cards on the market today are surprisingly varied. 

From physical and digital cards to open-loop and closed-loop options, each type offers its own benefits and audience fit. They can be customized, combined, and distributed in all sorts of ways to match your unique business goals.

Choosing the right option can certainly feel overwhelming. Narrowing down what works best for you often depends on cost, convenience, and the preferences of the people you’re rewarding. In this article, we’ll help you do just that, so you can use the right type of gift cards to take your reward program to the next level.

The types of gift cards available for businesses

Gift cards have become a go-to solution for many reward and payout programs, but there’s no one-size-fits-all approach. With so many types available, it's easy to get lost in the weeds. 

The following are the main distinctions between all these options—along with tips to choose the right type for your business needs.

→ Jump to the gift card brands that are most popular with recipients

Physical gift cards vs. digital gift cards

At the most basic level, gift cards fall into one of two categories: physical or digital. In most cases, you’ll choose between them based on the experience you want to offer, along with the logistics you’re willing (and able) to handle.

Some people still enjoy physical gift cards, and they can the right choice for certain programs and audiences.

But it costs between $.65 and $1.25 just to manufacture, encode, and ship a plastic gift card. So if you work with a gift card distributor, they'll simply have to charge more for physical options than digital.  

Further complicating things, processing and shipping physical cards can take several days or even weeks.

And of course, there’s always the risk that they get lost in the mail.

For these reasons, gift card programs that rely on physical gift cards and gift certificates often need to use higher reward amounts to keep engagement high. A recipient’s not going to be that excited to just wait around for a $5 reward.

In contrast, using digital rewards (i.e., e-gift cards) provides several key benefits:

• Immediate delivery

• Unconstrained reward amounts (i.e., feel free to send low denomination gift cards, even those worth just a penny!)

• Ability to automate and scale programs

Ultimately, a successful reward or incentive program comes down to engagement and behavior change. Companies generally use them to meet a business goal, like improved employee engagement or sales enablement.

And most of the time, electronic gift cards are simply the best way to reach those goals.

That said, your audience may simply prefer or require physical gift cards. For example, if your audience isn't online very much, they might not want something that needs to be redeemed online. 

Remember, too, that physical gift cards can often be used online, while digital gift cards can often be used in brick-and-mortar locations (i.e., this distinction is primarily about gift card distribution itself). 

For example, an Apple gift card from Giftbit gives the recipient to option to spend their reward in Apple Store, apple.com, in the Apple Store app, the App Store, iTunes, Apple Music, Apple TV+, Apple News+, Apple Books, Apple Arcade, iCloud+, Fitness+, Apple One, and other Apple properties (phew).

Open-loop vs. closed-loop (i.e., prepaid cards vs gift cards)

Spending flexibility is another way to break down the types of gift cards available for business programs. Again, your choice will come down to your goals and audience preferences.  

Open-loop cards are prepaid cards backed by major networks like Visa®, Mastercard®, and American Express®. They are preloaded with a set balance that can be used anywhere these networks are accepted, both in-store and online. Some, like the Giftbit Virtual Prepaid Mastercard, can even be used internationally.

Critical note: Open-loop cards are formally referred to as prepaid cards. For example, Giftbit offers prepaid cards from Visa and Mastercard. These are NOT gift cards, even though they’re often informally referred to that way. 

Benefits of open-loop prepaid cards include:

• Flexibility: Recipients can spend funds at a wide range of global merchants.

• Broad appeal: Suitable for diverse recipient preferences.

• Ideal for: Global rewards programs, large-scale incentives, and programs emphasizing recipient choice.

Meanwhile, closed loop gift cards are brand-specific, one-time load cards designated for specific retailers or brands, like Starbucks or Amazon. As such, they’re only redeemable at the issuing merchant’s locations, whether that’s online or in store.

Benefits of closed-loop gift cards include:

• Targeted Rewards: Send recipients to specific retailers to align with your program's objectives (for example, if you want your team to treat themselves to a cup of coffee before your next meeting, you might send them a Starbucks gift card).

• Partnership opportunities and brand alignment: Enhance collaborations with specific retailers. 

• Ideal For: Brand-specific promotions, employee rewards, and customer loyalty programs.

Summing up, choosing the right type of card here depends on your program goals and recipient preferences.

Open-loop prepaid cards work best when flexibility and broad acceptance are your main priorities. Closed-loop gift cards are often a better fit for targeted rewards and  brand alignment.

Ideally, your gift card provider will let you mix and match both options. That way, you can cater to everyone on your rewards list, while continually adjusting your program based on what works best.

Custom gift cards vs full choice gift cards

If you're new to gift card programs, then you may not appreciate that there’s a third critical way to differentiate the types of cards you send. 

Namely, you can choose to give your recipients a gift card to one specific brand (or a curated list of specific brands).

Or, assuming you are using e-gift cards, your gift card company might give you the opportunity to send gift cards that offer complete choice of a full rewards catalog. 

For example, Giftbit clients have the option to send ‘full choice’ gift cards, so that their recipients can choose for themselves from among the nearly 1000 options in our gift card catalog.

Again, deciding how much choice to offer your incentive recipients depends on your program goals and audience preferences.

Custom selections focus on curated options, making it easy to align rewards with specific events or themes. They’re ideal for:

• Targeted programs: Offer food delivery cards (e.g., Uber Eats, DoorDash) for webinars or convenience brands (e.g., Starbucks, Dunkin’) for quick treats. Jump to more ideas for pairing brand-specific gift cards with the right situation or campaign. 

• Employee rewards: Essentials like grocery gift cards or gas gift cards often resonate well.

• Themed rewards: Support wellness, mental health, or professional development initiatives with relevant, curated options.

Meanwhile, a full choice gift card provides recipients with access to a broad range of brands, giving them ultimate flexibility. It works well for:

• Maximizing engagement: Empower recipients to pick what they truly want, boosting satisfaction and loyalty.

• Scalable programs: Suitable for growing, diverse, and international audiences with varying preferences.

• Continuous Updates: Ensure rewards stay relevant with a constantly refreshed catalog

Pro-tip: Find a gift card platform that lets you mix and match both approaches. 

Global roundup: the most popular gift card options

Retail gift cards, restaurant gift cards, entertainment gift cards, online shopping, travel gift cards, gas and grocery gift cards, beauty and spa gift cards, sports gift cards ... the amount of options you have for gift card programs can feel overwhelming. 

So how do you choose?

Many program managers simply want to send the most popular gift cards— fool-proof brands and retailers with built-in, near universal appeal

To help you figure out what those might be, we've analyzed Giftbit data from 2024 to determine which brands are most popular among our clients and their recipients. As you might have guessed, Amazon.com gift cards and Walmart gift cards are always popular—but so are many other options. 

Unless noted, the following data shows the brands that recipients have chosen for themselves most often, when given full choice rewards. 

In other words, when recipients get to choose which gift card to select from a global catalog with hundreds of brands, these are what they go for. 

If you're still not sure what type of gift card is best for your business, we always recommend a quick chat with incentive specialist Matt Brossard. As the Director of Business Development here at Giftbit, he's helped hundreds of CEOs, marketers, HR professionals, and program managers to figure out exactly what works best for their bespoke needs. 

Please note: We do not include Visa and Mastercard prepaid cards in the following lists, even though they are popular options in virtually every country that sends them. Remember, prepaid cards are not gift cards, and the following data focuses on gift cards only. 

Most popular gift cards for US recipients 🇺🇸 

The most claimed gift cards among Giftbit recipients based in the US include:

• Amazon.com
• Walmart
• Starbucks
• Apple
• Target
• Domino's
• Dunkin'
• DoorDash
• Papa John's
• Chipotle
• Uber Eats
• The Home Depot
• Lowe's
• Blaze Pizza
• Grubhub
• Uber
• California Pizza Kitchen
• eBay
• Google Play
• Airbnb

Other notable mentions include Macy's, Hulu, Hotels.com, Krispy Kreme, Best Buy, Panera Bread, Chili's, Applebees, Baskin Robbins, Taco Bell, CVS Pharmacy, Panda Express, Barnes and Noble, Burger King, AMC Theatres, Albertsons, SONIC, Sephora, The Cheesecake Factory, Nike, Bass Pro Shops, Kroger, Lyft, Cold Stone Creamery, GameStop, Southwest Airlines, Delta Air Lines, and Marriott.

Most popular Canadian gift cards 🇨🇦

The most claimed gift cards among Giftbit recipients based in Canada include:

• Amazon.ca
• Walmart
• Starbucks
• Esso and Mobil
• Apple
• Indigo
• Uber Eats
• Winners
• Cineplex
• The Home Depot
• Uber
• DoorDash
• Ultimate Dining Card
• Sobeys
• SkipTheDishes
• Montana's BBQ & Bar
• Marshalls
• Old Navy
• Earls
• Bath & Body Works

Other notable mentions include Subway®, Hudson's Bay, Gap Canada, RW & Co, HomeSense,  Harvey's, Airbnb, Air Canada, Wayfair, Swiss Chalet, Davids Tea, FreshCo, East Side Mario's, Penningtons, Xbox, PlayStation Store, Ardene, Petro-Canada, and Kelsey's.

Most popular gift cards in India 🇮🇳

Popular gift cards among both Giftbit senders and recipients in India include: 

• Bigbasket
• BookMyShow
• Barbeque Nation
• Bluestone
• Ratnadeep
• Decathlon
• Allen Solly
• Apollo Pharmacy
• Fabindia
• American Eagle
• ONLY
• Café Coffee Day
• BookMyShow
• Westside
• Fastrack
• PUMA
• Costa Coffee
• MAX
• PVR Cinemas
• Levi's
• KFC
• Xbox

Most popular gift cards in Euros 🇪🇺

The most claimed gift cards among Giftbit recipients using Euros include:

• Just Eat
• Uber Eats
• Dots.eco (offset carbon emissions)
• Dots.eco (plant trees where needed most)
• Carrefour
• Airbnb
• MediaMarkt
• JACK & JONES
• ASOS
• Decathlon
• Fnac
• Tesco

Note: As an Amazon gift card distributor, Giftbit offers gift cards for Amazon.fr, Amazon.de, Amazon.co.uk, Amazon.it, and Amazon.es (among others), all of which are incredibly popular. 

Most popular Australian gift cards 🇦🇺

The most claimed gift cards among Giftbit recipients based in Australia include:

• Big W
• Coles
• Bunnings
• Apple
• Kmart
• Sephora
• Priceline
• PlayStation®Network
• JB Hi-Fi
• Myer
• IKEA
• David Jones
• EB Games
• Event Cinemas
• Target
• City Beach
• Foot Locker
• ASOS
• Catch.com
• BWS
• Airbnb

Other popular brands include Amart Furniture, Best Restaurants, Dymocks, Country Road, Be Fit Foods, Xbox, BCF, Supercheap Auto, Youfoodz, and Catch.com

Most popular gift cards in Brazil 🇧🇷

Popular gift cards among both Giftbit senders and recipients in India include: 

• Netshoes
• Casas Bahia
• C&A
• Riachuelo
• Carrefour
• Casa Riachuelo
• Zattini
• Pontofrio

Choosing the best type of gift card for your program

Choosing the best type of gift card for your program often comes down to three things: your goals, your recipients, and your budget.

So you don't have to get bogged down by all the different options—just focus on what works best for the people you're trying to motivate and the outcomes you need to see.

You can start by asking, “How do you want your reward to feel?”

Since most audiences today value speed and convenience, digital gift cards (also called e-gift cards) are usually the top pick. They arrive in your recipients’ inbox right away, can be sent at any denomination (even pennies), and make automated distribution a breeze.

But if your audience loves having something they can physically hold, or if they aren’t online much, physical cards might be the ticket—even though they’ll add some cost and shipping logistics.

Next, think about spending freedom. If you want recipients to spend their reward wherever they like, open-loop prepaid cards from Visa or Mastercard let them do exactly that.

Instead, you might send a “full choice” digital gift card, giving recipients the freedom to choose from a big rewards catalog.

Or if you’d rather steer them toward specific brands—like sending a coffee gift card for your next all-hands meeting—then a closed-loop gift card is a better fit. 

And don't be afraid to get creative! A large reward catalog like Giftbit's allows for unique and engaging campaigns. 

For example, you might consider:

• Using a Nordstrom gift card to celebrate a project milestone, to reward top performers, or to drive holiday engagement. Nordstrom is known for style and quality, which makes it perfect for recognizing all those achievements that call for a little luxury. Recipients can shop for new work outfits, cozy home goods, or that one high-end accessory they’ve been eyeing.
• Using an eBay gift card to encourage creativity, fuel a DIY challenge, or let recipients score secondhand treasures. eBay’s massive marketplace means there’s something for everyone. People can find everything from vintage collectibles to the latest gadgets, making this an appealing choice for teams with diverse interests.
• Using a Google Play gift card for tech-savvy teams, online learners, or employees who love entertainment on the go. Recipients can use this on apps, games, movies, books, or music. We’ve seen managers use Google Play gift cards to support personal development—like buying productivity or language-learning apps—or simply to give folks an easy way to unwind and recharge with their favorite streaming content.
• Using a Sephora gift card for beauty-themed marketing campaigns, brand partnerships with lifestyle influencers, or any promotion that wants to highlight a sense of luxury and personal style. Sephora’s broad inventory of cosmetics, skincare, and fragrances lets marketers align their products or offers with a premium vibe. We’ve seen folks pair a Sephora gift card with influencer-led campaigns or run “treat yourself” promotions tied to product launches. That way, recipients feel special and get to try out new items—making your brand stand out from the crowd.

 

We've seen that the best programs combine these ideas and leave room for flexibility and growth. That might mean using a full choice digital gift card for everyday initiatives, while leaving room for more personalized brand options when you want to offer something extra.

Ultimately, there’s no one-size-fits-all solution here—just a handful of smart considerations to keep your rewards effective, memorable, and fun.

A final option: standard rewards vs. promotional rewards

So far, we’ve looked at gift card types by format (physical vs. digital), spending flexibility (open-loop vs. closed-loop), and choice (custom vs. full catalog).

These differences all have to do with the actual gift cards. But with Giftbit, you'll have some more choices about the reward itself. 

Specifically, another crucial consideration will be your expiration policy—do you want to use a standard reward, which never expires, or a promotional reward that must be claimed by a certain date? Here’s how each option plays out:

Promotional rewards (expiring)

• Why use them: These work best when you want to drive fast action—like clicking a link to schedule a demo, filling out a survey, or registering for a webinar. Having a claim-by deadline encourages people to jump on the reward right away.
• Key benefits: Create a sense of urgency. Expiration windows can also help you manage costs by limiting how long each offer remains active. At Giftbit, for example, we offer complete pricing transparency around costs along with revenue-sharing on unused rewards.

Standard Rewards (never expiring)

• Why use them: Standard rewards shine when you’re thanking people for a job well done, celebrating referrals, sending owed payouts, or rewarding milestones. Recipients can claim their reward whenever it’s convenient for them, which helps build goodwill over the long term.
• Key benefits: This option offers total flexibility, so there’s no time pressure for your recipients. It’s perfect for programs geared toward appreciation, recognition, and retention. It's also good for programs where people have earned their reward. 

Ultimately, choosing between standard and promotional rewards hinges on your goals. If you want to spark immediate action, set a short timeframe. If you prefer a more open-ended “thank you” approach, go with no expiry.

You can even mix both for different stages of your program—like using promotional rewards for a quick marketing campaign and standard rewards for ongoing recognition.

Note: If you opt for promotional rewards, the claim window may expire, but once recipients redeem their gift card, the gift cards themselves typically don’t expire.

What is the easiest gift card to use?

Easy gift cards to use for business programs are those that offer full transparency on costs, a flexible distribution platform, and human support when you or your recipients need it.

Meanwhile, the best gift card providers offer a user-friendly dashboard for quick reward deployment, plus a robust gift card API so you can seamlessly integrate digital rewards and/or digital payouts into your existing workflows and marketing automation.

You’ll also want an up-front pricing model with no hidden fees, so you always know exactly what you’re paying for, along with a way to track real-time performance so you can optimize your budget. 

And of course, you'll also want dedicated, ongoing support for both you and your recipients. 

In short, go with a solution that offers both simplicity and peace of mind for administrators and recipients alike. That’s the sweet spot for an easy to use gift card experience.

Giftbit makes it easy to use the right type of gift card for business programs of all shapes and sizes. Sign up for a free account now to start sending.