The Future of Open Loop Gift Cards
The gift card market continues to experience significant growth. It was valued at USD 984.31 billion in 2023, with an expected CAGR of 17.74%, and is projected to reach USD 5,039.3 billion by 2033.
Open loop gift cards have become much more than a gifting solution that offers convenience and flexibility.
Today, businesses use them for various purposes, including employee acquisition, retention, and engagement. From large corporations to small companies, businesses of all sizes use these versatile cards as a strategic tool for boosting employee motivation and customer loyalty.
Today, businesses use them for various purposes, including employee acquisition, retention, and engagement. From large corporations to small companies, businesses of all sizes use these versatile cards as a strategic tool for boosting employee motivation and customer loyalty.
This blog explores the trends and innovations in open loop gift cards to help shape your outlook. Dive in!
Emerging Trends and Innovations in Open Loop Gift Cards
Open loop gift cards, which function as prepaid debit cards, offer flexibility for use anywhere that accepts the card’s payment network. Whether for online or in-store purchases, they cater to various consumer needs.
Here are the key trends and innovations driving the future of open loop gift cards:
Here are the key trends and innovations driving the future of open loop gift cards:
1. Shift Towards Personalized Gift Cards
Open loop gift cards are no longer limited to regular features and common designs. The evolution of personalized gift cards has opened up incredible opportunities for incorporating unique designs and impactful presentations. You can create one-of-a-kind cards that resonate with user preferences.
For example, you can opt for metal cards engraved with your company logo or cards featuring a personal branding of your company.
For example, you can opt for metal cards engraved with your company logo or cards featuring a personal branding of your company.
The global gift card market was valued at USD 818.52 billion in 2022. In less than two years, this valuation has increased to USD 1,158.92 billion in 2024.
The increasing popularity and demand for personalized gift cards contribute to this growth spurt.
2. Integration of Technology
Technological integration is another factor driving the adoption of these digital gift cards. Their integration with mobile wallets like Google Pay and Apple Pay allows easy storing and redemption of these cards directly from the wallets.
While this results in enhanced convenience and flexibility, it enables you to access multiple open loop gift cards through your smartphone.
Additionally, digital gift card marketplaces are gaining traction as they facilitate purchasing open loop cards effortlessly.
You can also customize the redemption rules of these cards. For instance, you can allow the cards to be redeemed when spending a certain amount or purchasing items of a specific SKU.
While this results in enhanced convenience and flexibility, it enables you to access multiple open loop gift cards through your smartphone.
Additionally, digital gift card marketplaces are gaining traction as they facilitate purchasing open loop cards effortlessly.
You can also customize the redemption rules of these cards. For instance, you can allow the cards to be redeemed when spending a certain amount or purchasing items of a specific SKU.
3. Robust Encryption Techniques
One key prepaid card trend is the integration of robust encryption techniques. These techniques help safeguard data and offer protection against fraud and unauthorized usage.
In other words, they enable the safe and secure use of gift cards, which has helped instill confidence and fuel growth in the industry.
In other words, they enable the safe and secure use of gift cards, which has helped instill confidence and fuel growth in the industry.
4. Sustainability Initiatives
Open loop digital gift cards reduce the environmental impact of gifting. By eliminating the need for plastic card processing and physical distribution, they align with the growing consciousness of practicing sustainable gifting.
Open loop gift cards are becoming widely accepted as an eco-friendly gifting option. From large business organizations to individuals, these cards effectively contribute to their sustainable gifting initiatives.
Open loop gift cards are becoming widely accepted as an eco-friendly gifting option. From large business organizations to individuals, these cards effectively contribute to their sustainable gifting initiatives.
Factors Driving the Growth of Open Loop Gift Cards
The global gift card industry is witnessing significant growth and popularity. Edged by the ease of acquiring and using open loop gift cards, this industry is getting strong support from retail and corporate segments. Several factors are driving the growth of open loop card solutions.
Some of the main factors are as follows:
Some of the main factors are as follows:
1. Increased Convenience
Convenience is a primary factor behind the increasing adoption of open loop gift cards. Consumers can use these cards at any place that accepts the relevant network. Further, they can store these digital cards on their mobile phones, which makes it easy to carry them around.
Whether shopping for groceries in-store or purchasing flight tickets online, these cards can be used to make payments instantly, which has contributed to their growing popularity.
Whether shopping for groceries in-store or purchasing flight tickets online, these cards can be used to make payments instantly, which has contributed to their growing popularity.
2. Technological Advancements
With new technologies, open loop card solutions have become more secure. For instance, today, gift cards are embedded with EMV chip technology, which incorporates an additional layer of security to the card.
Due to this, fraudsters find it more difficult to tamper with such cards or steal card information. Consumers can even use digital gift cards to make contactless payments from their mobile phones, eliminating the need to carry physical cards.
Due to this, fraudsters find it more difficult to tamper with such cards or steal card information. Consumers can even use digital gift cards to make contactless payments from their mobile phones, eliminating the need to carry physical cards.
3. Evolving Consumer Preferences
Changing consumer preferences are playing a big role in the growth of open loop cards. In today’s fast-paced world, consumers want fast, secure, and simple payment systems. Open loop gift cards stand true on all these counts and more.
Consumers also appreciate that open loop cards offer wide flexibility. This enables them to choose cards that correspond to their needs, thus increasing user satisfaction and driving growth.
Consumers also appreciate that open loop cards offer wide flexibility. This enables them to choose cards that correspond to their needs, thus increasing user satisfaction and driving growth.
4. New Applications
Gone are the days when gift cards were used only in a few scenarios, such as gift-giving, purchasing at relevant retail stores, budget control, etc. Now, open loop gift cards serve various applications across different sectors, fueling their growth further.
For instance, experiential gifting is on the rise. Consumers use these cards for experiences like spa sessions, dining adventures, traveling, etc. The healthcare industry applies these cards for healthcare promotions and patient incentives.
Open loop cards are also used in charitable and NGO fundraising campaigns. Educational institutions use them to reward students for extracurricular activities, academic excellence, and other achievements. Businesses use them to engage customers.
For instance, experiential gifting is on the rise. Consumers use these cards for experiences like spa sessions, dining adventures, traveling, etc. The healthcare industry applies these cards for healthcare promotions and patient incentives.
Open loop cards are also used in charitable and NGO fundraising campaigns. Educational institutions use them to reward students for extracurricular activities, academic excellence, and other achievements. Businesses use them to engage customers.
5. Universal Acceptance
The acceptance level of a card has a big impact on its popularity and growth. Open loop gift cards have gained wide acceptance. Consumers can use them anywhere that accepts the associated card network (such as Mastercard or Visa), making them a versatile payment option.
Benefits of Open Loop Gift Cards for Businesses
Open loop gift cards can benefit businesses of all sizes. Businesses can leverage these cards to expand their customer base, increase customer loyalty, drive sales, and engage customers.
1. Tap Into the Impulsive Buying Behavior
According to a market report, 84% of shoppers purchase items impulsively. These impulse purchases increase by 28% when they use credit cards instead of cash. Open loop cards function similarly to credit cards. By issuing these cards, businesses can tap into consumers’ impulsive buying potential and increase their sales.
2. Expand Customer Base and Reduce Acquisition Cost
By offering promotional gift cards, businesses can attract new customers. When such customers visit the store to redeem the cards, they get introduced to the brand and its products or services, which they may not have explored otherwise.
If the business succeeds in making a positive impression on the customers, they may return for more and become loyal customers. It is an effective means of obtaining new customers at a reduced acquisition cost.
If the business succeeds in making a positive impression on the customers, they may return for more and become loyal customers. It is an effective means of obtaining new customers at a reduced acquisition cost.
3. Enhance Customer Loyalty
Businesses can use open loop cards to foster customer loyalty. When customers visit a store to redeem a gift card, the company has an opportunity to extend an exceptional shopping experience. This can motivate customers to repeat visits, thus increasing engagement and sales.
Advantages of Partnering With Qwikcilver by Pine Labs for Open Loop Gift Cards
Open loop gift cards have evolved into valuable assets for businesses. Given their growing significance, choosing the right gift cards to ensure maximum impact becomes important. By partnering with Qwikcilver by Pine Labs, you can elevate your gifting strategy to the next level.
Here are a few Qwikcilver by Pine Labs innovations that can help you explore the potential of open loop gift card solutions:
Here are a few Qwikcilver by Pine Labs innovations that can help you explore the potential of open loop gift card solutions:
1. Designed for All Payment Needs
Qwikcilver by Pine Labs offers open loop gift cards designed to meet all your payment needs. These cards are suitable for everything from various business payment requirements to new-age use cases.
For instance, you can use them to cover travel, meals, conveyance, medical, and other expenses. These cards also help streamline B2B payments, such as vendor payouts and petty cash transactions.
For instance, you can use them to cover travel, meals, conveyance, medical, and other expenses. These cards also help streamline B2B payments, such as vendor payouts and petty cash transactions.
2. Powerful Features
These cards have powerful features that make them preferred payment solutions for businesses. They can be issued instantly, redeemed, and managed in real time.
These open loop gift cards can be used for cashless transactions at all places, including retail stores, restaurants, fueling stations, etc. The best part is that you can easily track the transactions.
These open loop gift cards can be used for cashless transactions at all places, including retail stores, restaurants, fueling stations, etc. The best part is that you can easily track the transactions.
3. Payroll and Reward Solutions
With the open loop gift cards from Qwikcilver by Pine Labs, you can ensure easy payouts to employees, channel partners, and contractors. You can also use these cards to distribute incentives to relevant parties.
Another advantage of these cards is they can be used as corporate rewards. Whether it’s a festive occasion, work anniversary, annual employee reward program, or any other occasion, you can reward your employees by giving them these cards.
Another advantage of these cards is they can be used as corporate rewards. Whether it’s a festive occasion, work anniversary, annual employee reward program, or any other occasion, you can reward your employees by giving them these cards.
4. Available in Different Forms
You can customise the open loop gift cards from Qwikcilver by Pine Labs to meet your needs. They can be physical or virtual, and you can opt for cards with reloadable or non-reloadable capability.
Once you select the cards, you can configure denomination, set validity, input redemption rules, and specify MCC restrictions. In other words, you can create custom templates for the cards.
Once you select the cards, you can configure denomination, set validity, input redemption rules, and specify MCC restrictions. In other words, you can create custom templates for the cards.
5. Scalable Solutions
The robust platform of Qwikcilver by Pine Labs is designed to build and deliver scalable gift card solutions. Whether you have a small business or handle a large brand, these scalable solutions can greatly boost your business. The platform is designed to handle large volumes seamlessly.
Wrapping Up
Open loop gift cards are here to stay and grow. They can play a vital role in enhancing your business through effective branding and personalization.
Qwikcilver by Pine Labs can address your needs for such card solutions. As a well-known and reputed name in the global card industry, we offer the best-in-class open loop card gifts. Our cards are incorporated with the latest security features, ensure seamless transactions, and are widely accepted.
