Gift cards look simple. You buy one in a store, give it to someone, and they spend it in a store or online. Behind the scenes, however, there is a large ecosystem of companies that make this possible.
This article explains the main players in the gift card industry and how they work together.
The basic idea of a gift card
A gift card represents stored value. Someone pays money upfront. The receiver can later spend that value at a specific brand or within a group of brands.
Gift cards exist in two main forms:
Closed-loop gift cards
These can only be used at one retailer. Examples include cards for a specific store, restaurant, or brand.
Open-loop gift cards
These run on payment networks such as Visa or Mastercard. They can be used almost anywhere that accepts those cards.
Restricted Open-loop gift cards
These can only be used at a limited group of merchants or within a specific program. They combine the flexibility of open-loop cards with restrictions set by the program sponsor, for example allowing spending only within selected set of retailers. Examples are One4all, WunschGutschein, Ilicado, Love2Shop.
Most of the ecosystem described here focuses on closed-loop cards, which are widely used in incentives, rewards, and loyalty programs.
The main players in the gift card ecosystem
Several types of companies work together to make gift cards available worldwide.
Retailers and brands
Retailers are the starting point of the ecosystem. They create gift cards for their brand.
Examples include fashion retailers such as H&M, supermarkets like Walmart of Lidl, gaming platforms like Nintendo, and online marketplaces like Amazon.
Retailers benefit from gift cards in several ways:
- They receive money before products are delivered.
- Customers often spend more than the card value.
- Gift cards bring new customers into the store.
Retailers usually work with technology providers and distribution partners to sell their cards.
Issuers and program managers
Issuers or program managers help retailers create and manage gift card programs.
They provide the technology that powers the cards, including:
- Card generation
- Balance management
- Fraud prevention
- Reporting
- Redemption systems
Some issuers specialize in digital gift cards. Others also produce physical cards that are sold in stores.
They are responsible for making sure the gift card works correctly when someone redeems it in a store or online.
Gift card aggregators
Aggregators connect many retailers to many distributors through a single integration. Examples are Tillo, Runa and BlackHawk network.
Instead of connecting to hundreds of brands one by one, companies can connect to one aggregator and gain access to a large catalog of gift cards.
Aggregators manage:
· Product catalogs
· Currency support
· Global distribution
· Digital delivery
This layer makes the ecosystem scalable.
Without aggregators, the industry would require thousands of direct integrations.
Distributors and marketplaces
Distributors sell gift cards to businesses or consumers.
There are different types of distributors:
Retail distribution
Gift cards sold in supermarkets, convenience stores, or online shops.
B2B distribution
Companies that sell gift cards to businesses for incentives, rewards, or promotions.
Online marketplaces
Platforms where consumers can buy digital gift cards instantly.
Distributors rely heavily on aggregators and issuers to supply the cards.
Incentive and loyalty platforms
Many gift cards are used in reward programs.
Companies reward people with gift cards when they:
· Reach sales targets
· Perform well at work
· Complete surveys
· Join promotions
· Participate in loyalty programs
Incentive platforms and loyalty platforms manage these programs. They integrate with gift card providers so users can choose a reward.
This part of the ecosystem drives a large share of global gift card volume.
Corporate buyers
Corporate buyers are companies that purchase gift cards in bulk.
They use them for:
· Employee recognition
· Sales incentives
· Channel incentives
· Customer loyalty programs
· Marketing promotions
These companies often work with incentive agencies or reward platforms that help manage the programs.
How the money flows
A simple example helps explain the flow of money.
1. A company buys $100 in gift cards for a sales incentive program.
2. The incentive platform purchases those cards from a distributor or aggregator.
3. The aggregator sources the card from the retailer or issuer.
4. The sales employee redeems the gift card at the retailer.
Each layer may earn a small margin or fee.
These margins fund the ecosystem and allow companies to provide services such as technology, distribution, and program management.
Why this ecosystem exists
Retailers could theoretically sell gift cards directly to everyone.
However, global distribution requires:
· Integrations with many systems
· Multiple currencies
· Fraud protection
· Digital delivery
· Partnerships with reward platforms
The ecosystem exists because it simplifies these connections.
It allows thousands of companies around the world to offer gift cards without building the infrastructure themselves.
A global industry
The gift card ecosystem has grown into a global industry worth more than a trillion dollars.
Gift cards are now used in many sectors, including:
· Retail
· Travel
· Gaming
· Entertainment
· Fintech
· Employee rewards
· Loyalty programs
Digital delivery and APIs have accelerated the growth of the ecosystem.
Today, companies can deliver rewards instantly to users in many countries.
Why this matters for careers
Because the ecosystem is complex, it requires many types of professionals.
Common roles include:
· Partnerships and business development
· Account management
· Product management
· Program management
· Technology and integrations
· Sales and marketing
Many people enter the industry from sectors such as fintech, e-commerce, payments, SaaS, or affiliate marketing.
Summary
The gift card ecosystem is a network of retailers, technology providers, aggregators, distributors, and reward platforms.
Each player performs a specific role that allows gift cards to be sold and redeemed worldwide.
Although the product is simple for consumers, the infrastructure behind it is highly specialized.
This ecosystem supports a fast-growing global industry and creates many opportunities for companies and professionals alike.