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SUMMARY: Digital gift cards are a modern, flexible solution for incentive programs, offering real-time delivery, automation, and global reach. They improve engagement by catering to diverse preferences, while also ensuring security and providing tracking for better ROI. Cost-effective, safe, and scalable, they simplify rewards management and help organizations achieve business goals quickly and easily.
We’ve all used gift cards in our personal lives. But what makes them the smart business choice?
Businesses typically use rewards and incentives because they’re trying to achieve a goal, like better employee retention or more customer loyalty. Rewards and incentives need to do something.
And like we’ll explain further below, gift cards are simply the best option when you’re trying to accomplish anything that requires engaging or motivating an audience.
So why not just buy a stack of plastic gift cards at your local drug store and call it a day?
Ultimately, it’s for the same reason you don’t grab a stack of stamps and envelopes when you need to send out invoices or payment slips—digital gift cards specifically are the modern option for modern organizations.
Plus, using electronic gift cards opens up amazing opportunities to improve your programs.
There's no delivery delays (so you can reward your recipients in real-time), you can send them in virtually any amount (even down to a penny, if you’re so inclined—great for points-to-rewards programs), and they let you automate your sending workflow (critical if you have any plans to scale).
So yes—old-fashioned gift cards can still help organizations do something.
But digital gift cards help them do more.
And they make life a lot easier for program managers, freeing them up for bigger picture tasks that will move their programs—and their organizations—forward.
You'll want to use bulk digital gift cards if you need to accomplish any of the following.
Any type of gift card makes a great reward . . . until it gets lost or stolen. With physical gift cards, either you or your recipient will be out of luck when that’s the case.
Meanwhile, it’s easy to see if digital gift cards have been redeemed, and reissue them in just one click—no more lost cards or unhappy customers.
If you buy gift cards and put them in the mail, you have no control over when they’ll get delivered (or if they’ll even get delivered at all).
If specific delivery dates are important for your program (common for work anniversary gifts and other corporate gifts), you'll need to use digital gift cards to schedule the send.
If someone has won a reward or earned a payout , they’re going to expect that reward or payout immediately. Automation ensures every recipient gets their card promptly, saving time and reducing manual work.
If you run a program where automation is essential (common for sales incentives), then digital rewards are the best option.
If you’ve ever tried to manually source gift cards that work in different countries, you know what a nightmare this is.
If you run a program with recipients in more than one country (common when engaging remote and/or hybrid employees), or if you don’t exactly know where all of your recipients are actually located, then global, digital gift card distribution will eliminate a lot of guesswork and legwork.
Some people like Starbucks, others prefer Dunkin’. Some are glued to Google Play, others are Xbox die-hards. Some of your audience might respond to big, global brands like Amazon and Target, while others want to support businesses in line with their values.
If you run a program with large and/or diverse audiences, you'll want to find digital gift card platform that lets you offer choice from an entire gift card catalog to keep everyone happy and engaged.
You’re using gift card incentives to accomplish a business goal. But how can you reach that goal if people aren’t opening your emails and claiming their rewards?
Going digital gives you the data you need to track open and redemption rates in real time. See if people are engaging with your incentives—and if they’re not, make tailored adjustments to improve your efforts.
To make the business case for any incentive or rewards program, it needs to earn more than it costs.
Working with a transparent gift card distributor will give you access to detailed financial reports you can use to stay on top of your budget, analyze which rewards work best, and keep leadership and finance teams happy.
(Even better, if you send a high volume, some companies will also offer discounts and revenue sharing.)
We’re all aware of the level of scrutiny modern organizations should place on any new tech integrations to protect against scammers and fraudsters.
Find a gift card provider with SOC 2 compliance and other security features, and it will be much easier for cautious IT teams to say ‘yes.’
Costs and logistics used to be barriers for companies considering gift card programs. With dated methods, having to manufacture, ship, and sometime replace physical gift cards would steadily eat away at ROI.
Digital gift cards eliminate all these barriers, and they can be delivered in variable amounts, even down to the penny. Some gift card aggregators even offer bulk discounts and revenue sharing for large programs.
Some companies use digital gift cards specifically to generate revenue. They generally follow one of two models:
1. Affiliate revenue model—where a business offers its users gift cards (often through a points-to-rewards setup) to use their app or shopping services.
2. Channel sales model—where a business with an existing app or service works with a gift card distributor to offer incentives like referrals, rebates, or employee retention incentives. They do this to create a new revenue stream that also keeps users on their platform.
If you’d like to learn more about these options, book a call with Matt Brossard, Giftbit Director of Business Development.
SUMMARY: Bulk digital gift cards are the best rewards and incentives because they are instant, cost-effective, and more meaningful than cash, creating a lasting positive association with your brand. They eliminate the delays and logistical challenges of physical cards, while offering recipients the flexibility to choose rewards they truly value. With the right gift card platform, businesses can streamline their programs, boost engagement, and maximize impact.
Digital gift card rewards provide a modern solution for modern businesses that need a reliable, scalable way to engage an audience, whether that’s to motivate employees, incentivize customers, encourage research and survey participation, or otherwise show appreciation.
Gift cards in general make great rewards incentives for the same reason they make great gifts—people love getting them. Case in point: they’ve been the most requested holiday gift for the past 15 years—with 2024 holding strong.
Studies have consistently shown that recipients find non-cash rewards (like corporate gift cards) to be more meaningful than receiving cash.
And the kicker—2 out of 3 people who receive a gift card as an incentive from a company will:
If you send someone cash, maybe via an e-transfer or by adding a little extra bonus to a pay check, that money is going to go right into their bank account to be swallowed up into all the essentials and other expenses. When you use your debit card to buy something, you’re not thinking about whether you’re using this month’s pay check, last month’s refund, or that belated happy birthday gift a family member sent yesterday.
Instead, give your audience a gift card, and they’ll be really excited to spend it. And they'll remember who gave them that ‘special something’ every time they use it.
Added gift card bonus: recipients will also start to associate your brand with the brand of their gift card. We call this ‘branded currency,’ and it’s an easy way to amplify your relevance and reputation.
Clearly, gift cards are great.
But digital gift cards are even better, for a few key reasons.
First, with the right software and/or gift card integrations, digital incentives can be delivered instantly, in real time. Someone earns a reward, and they get that reward right away.
This is important because research shows that the timing of reward delivery impacts the success of the reward. In fact, your program might be more successful if you use sooner, smaller rewards over later, larger ones.
That's because the economic value your recipients place on the rewards they receive will decrease with time (translation: a $5 gift card they get today can actually be more powerful than a $25 gift card they’ve got to wait a few weeks for).
Remember that processing and shipping physical cards can take anywhere from a few days to a few weeks (not counting the risk of things getting lost in the mail). If you want fast rewards, they need to be digital.
Second, digital gift card programs are typically more cost-effective.
Assuming that you’re working with a trustworthy gift card company with transparent pricing, you'll be able to closely monitor ROI, while also enjoying bulk savings and revenue sharing.
You’ll also have options to send smaller denominations of gift cards (translation: you won't be locked into, say, $25 gift cards that might be out of your budget, or simply not appropriate for the program you’re running).
We live in a world where broad consumer choice is not only the norm—it’s what people expect.
And when it comes to offering that kind of choice, digital gift cards win again.
Decades of academic research clearly show that there’s an inherent value in being able to choose your own reward, instead of having that choice made for you.
With the right gift card platform, you’ll be able to let your audience decide for themselves which gift card brand they want. This offers a level of flexibility that’s just not available with physical rewards.
So, maybe you can’t please all of the people all of the time, but letting them choose from a digital gift card catalog with nearly 1,000 popular global brands comes pretty close.
SUMMARY: Digital gift cards work better than other incentive options because they're convenient, flexible, and highly appealing to recipients. They're more cost-effective and easier to manage than physical options, and more memorable than cash and other digital payments.
When comparing reward options, digital gift cards are usually the top choice.
Of course, when you’re considering any type of rewards program for your business, you have several other options.
And if you do decide to go digital, you’ll still have to decide whether to leverage gift card software, or whether you'll try to go it alone.
Depending on your audience and business goals, digital gift cards (and/or finding a gift card partner) might not be the best choice (or the best choice for right now).
The following will help you understand the other incentive options available to you, so you can make a more informed decision for your program.
Digital gift cards in action
Greg Augustine, Project Manager at Prime46, is responsible for managing incentive fulfillment for all of his company’s projects and clients. One of the most tedious and time-consuming parts of his job was manually buying, sending, and tracking Amazon gift cards.
So what happened when Greg took just two days to set up automated sending through a gift card API?
"I can actually quantify my time savings from Giftbit, because we bill our clients hourly,” says Greg. “I’m saving 5 to 10 hours a week.”
SUMMARY: Starting a digital gift card program is easy with the right provider. Look for one that offers seamless integration, transparent pricing, and a robust, accurate catalog. You'll also need one with strong security, global capabilities, and support for programs of all sizes.
Setting up an incentive program that uses digital gift cards is a lot easier than you might think.
Whether you're rewarding employees, incentivizing customers, or providing payouts, all you need is a reliable gift card distributor with flexible integrations and a great catalog.
Your distributor is the partner that’s going to simplify the entire process and help you scale your program with ease. So you’ll want to find one that:
To assess gift card providers, you’ll want to ask them the following six questions:
Not all gift card providers are created equal. Some focus heavily on prepaid cards (like Visa and Mastercard), while neglecting popular egift cards to specific stores.
While prepaid cards are versatile, they’re not always the best fit for every program. But some providers will shoehorn you into using them because they make more money from those cards, even if it’s not what works best for you or your recipients.
Some platforms also require your recipients to download a separate app just to use these prepaid cards, creating extra friction that can hurt the success of your program.
To build a rewards program that works, you need complete flexibility. Finding a provider that treats prepaid cards and store-specific gift cards with equal importance will give you more options to create a seamless and enjoyable experience for your recipients.
It’s all about offering the right rewards in the easiest way possible.
Every provider will tell you they offer excellent support, but here’s the truth: many only prioritize their biggest clients—the ones sending millions of dollars in rewards each year.
If your program isn’t in that top tier, you’ll be an afterthought. Expect long wait times and slow service.
To run a successful gift card program, you need a partner that’s as invested in your success as you are—no matter what size your program is.
This is especially critical for small and mid-sized programs, where every interaction and response can make or break your rewards initiative.
A reliable partner isn’t just nice to have—it’s essential. Look for one that offers dedicated account managers, responsive customer and recipient support, and resources tailored to businesses of all sizes.
💬 “We've had incredible account management support and the team has been great getting us to where we need to be,” says Jenna Adrian, Head of Operations at Zogo.
Transparency is everything when it comes to managing your gift card program. By choosing a provider with clear, flexible pricing, you’ll maximize your program’s impact and keep things hassle-free. You'll also have all the information you need to negotiate a good deal.
Many providers tack on hidden fees, hide the spreads they get on discounts, and are vague about revenue they make on breakage.
Worse, some providers actually optimize for breakage, giving your recipients such an irritating end-user experience that they give up on your reward before they even claim it.
So to ensure you get the best deal, look for a provider with pay-as-you-go pricing and no added fees to use their platform, plus detailed reporting that lets you see actually exactly where all of the money is going.
This will ensure every dollar you spend goes directly toward your incentives—not into administrative overhead and pockets of your provider.
💬 “The most effective incentive programs are ones where the entire budget goes to the reward,” says Giftbit CCO, Nat Salvione. "Order as much or as little as you want from us, and we’ll demonstrate value to you by doing a good job."
No matter how great their pricing and support, your gift card provider is only as good as its catalog.
You need a reliable gift card rewards catalog filled with accurately listed, high-demand gift card brands. If the rewards you’re offering don’t work or aren’t appealing to your recipients, your program will fail before it even gets off the ground.
💬 “Having a reward that works ensures the recipient is happy to receive it and actually able to use it,” says Salvione. “It capstones your entire program.”
After all the effort you’ve put into running your incentive program—tracking, marketing, and verifying results—you want the reward delivery to be flawless. Imagine a loyal customer, thrilled to use their gift card at a grocery store checkout, only to find it doesn’t work. This is an awful (but all too common) recipient experience that undermines all the hard work you’ve done to make a successful program.
Gift card failures can happen for many reasons, like incorrect terms and conditions, formatting errors, or region restrictions. These issues are even more common when companies offer automated systems like gift card APIs without proper oversight. A simple mistake here can ripple across your entire program.
Thankfully, by choosing a partner that takes catalog management seriously, you’ll minimize the risk of errors and create a seamless, positive experience for your recipients
💬 "We always keep the end cardholder in mind when we wrangle all the details,” says Giftbit Head of Partnerships Lindsay Page. “Their positive experience using the card reinforces the whole goal of the incentive program."
Security should always be a top priority when choosing a gift card provider. Handling sensitive data comes with significant responsibility, and outdated protocols or a history of breaches can put your business (and your recipients) at serious risk.
When evaluating providers, you'll want to see a proven track record of security excellence—it’s the foundation of a reliable and trustworthy rewards program. Look for one that invests in advanced encryption, proactive monitoring, and strict compliance with standards like SOC 2.
SOC 2 certification in particular means the provider meets rigorous criteria for protecting data and ensuring privacy, so you can trust that your program and your recipients’ information are secure.
It also often makes for an abbreviated security process for IT teams.
Whether your recipients are spread across the globe, or you might expand internationally in the future, you need international egift cards you can send with ease.
A strong provider will offer universal rewards with a catalog of global brands, ensuring recipients in any country have access to relevant and appealing options. They’ll also simplify funding for international programs, allowing you to send rewards in multiple currencies without the hassle of juggling bank accounts in different countries.
Some providers excel in one region but struggle elsewhere, creating headaches for businesses with a global reach. For example, a provider that works well in the U.S. might not be great at funding programs in Canada, Australia, or beyond.
Meanwhile, good providers will make international gifting as effortless as sending rewards locally to let you focus on growing your program—not navigating unnecessary barriers.
More info: How To Find A Gift Card Provider
SUMMARY: There are two mains ways to automate bulk gift card delivery— either no-code automation via Zapier app triggers, or a fully integrated API. Automating reduces manual work and errors, ensuring seamless reward delivery.
Using a distributor with a solid platform already simplifies your life—no more spreadsheets, lost cards, or endless tracking. But if you’re looking to truly "set it and forget it," automation is the way to go.
Here’s how you can take your bulk digital gift card program to the next level.
Zapier integration lets you connect your gift card program to your favorite apps without any coding. This lets you trigger gift cards to send automatically.
For example, you could set up a Zap to send a reward when someone completes a survey, signs up for a demo, or hits a sales milestone.
Zapier works with thousands of the most popular tools, including HubSpot, Airtable, Google Sheets, Typeform, Qualtrics, and Alchemer. It’s fast, flexible, and lets you streamline virtually any workflow with minimal effort.
This is how Giftbit client and Curipod COO & Co-Founder Eirik Hernes Berre set up his company incentive program in just ten minutes.
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💬 “We needed universal digital rewards and a system that was easy to automate,” he says. “I watched the Zapier video on Giftbit's website and set it up in 10 minutes using Giftbit, Zapier, and HubSpot.”
See the full case study: How Curipod set up a scalable incentive program in 10 minutes flat
A gift card API is the go-to for programs that need more power and customization. A good, open API will let you integrate rewards directly into your own app, website, or CRM, and create a completely white label experience.
This option does require developer resources—more or less, depending on the scope of work involved. A developer-friendly API like Giftbit’s is designed to make this process quick and easy, so that developers can often get up and running in just a few days or even a few hours.
And the long-term payoff is definitely worth it for businesses with complex or high-volume needs.
For example, Prime46’s Greg Augustine reports that API integration was virtually seamless. His developer was able to completely integrate with Sawtooth in just two days.
💬 "It wasn't difficult for our developer to implement at all," he says.
With the right tools, gift card automation can save you time, reduce errors, and ensure your program runs like clockwork—all while delivering a great experience for your recipients.
We recommend a booking quick call with an integration specialist if you’ve got any questions about the process.
SUMMARY: By using a variety of gift card categories, your rewards program will cater to diverse tastes while still feeling tailored to each recipient. Digital gift cards make it easy to show your appreciation in a way that resonates with everyone.
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Once you've chosen how you'll distribute your cards, now comes the fun part: what brands will you send?
Remember, one of the biggest advantages of digital gift cards is the sheer variety of options available.
A DoorDash gift card lets employees enjoy a meal at their favorite restaurant, while options like Home Depot or Apple cater to DIY enthusiasts or tech-savvy users. From Bath & Body Works to Under Armour, there's truly something for everyone.
SUMMARY: Challenges like audience location, personal preferences, and tax compliance can arise when using bulk gift cards, but they don't have to be deal breakers. Working with a reliable provider to handle logistics and compliance and finding the right approach for using digital gift cards can overcome any hurdles to create a seamless and meaningful reward experience.
Digital gift cards are one of the easiest and most flexible options for incentive programs, but that doesn’t mean they don’t come with potential trickiness.
Here are five common hurdles you might face—whether you’re trying to start a program yourself, or trying to convince the decision-makers in your organization.
We’ll also share tips to overcome these challenges.
If your recipients are scattered across different locations, manually finding a good reward and getting it to them can be tricky.
Solution: Opt for universal rewards like the Giftbit USD Virtual Prepaid Mastercard.
Or, offer a choice of global options, so recipients can pick something accessible and meaningful for their region—whether they’re in London, Paris, New York, or rural Saskatchewan.
Everyone’s values and tastes are different. Some recipients might be ethically opposed to certain retailers, while others might simply prefer a more tailored option.
Solution: Offer your recipients their choice of a full rewards catalog. Letting them align their own rewards with their own preferences will keep them happy and engaged.
Gifts you can touch and hold in your hands can be meaningful (although remember that physical rewards introduce their own challenges). But that doesn’t mean that digital gift cards inherently lack the personal touch of their physical counterparts.
Beyond the card design itself, it’s still easy to use digital gift cards to create special moments and acquire physical items.
Solution: Offer rewards from retailers that offer goods so your recipients can choose a tangible, memorable item. They'll get instant gratification from receiving the digital reward, then be delighted again when their choices arrive at the doorstep.
💬 “Digital gift cards are flexible enough that you can always create the right moment for the person you’re giving it to,” says Nat Salvione, Giftbit CCO.
Maybe taxation or compliance issues related to gift card programs seem like more trouble than they’re worth. But with a solid plan in place, it’s simple enough to offset any added complexity, thanks to all the benefits a good program can bring.
Solution: Find a gift card distributor to take care of all those nitty gritty details related to your orders, including cardholder agreements, compliance with regulations, payment processing, and delivery logistics.
Depending on the size of your program and where you’re located, you may also want to work with your finance team to establish a clear tax position for your rewards program.
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