Prepaid Gift Cards & How They Will Be Received By Your Clients and Distributors for Loyalty Programs

by: Nichole Gunn December 23, 2014

Prepaid debit card rewards are great for your business because they typically drive between 30-60% of your customers back to you for repeat business. When rewarded with prepaid debit cards, they spend more money, without additional offers, and without additional expense. You can even attach coupons and other promotions to the prepaid debit card reward as a way to enhance your customers’ brand experience.

A recent study of more than 1,400 people showed the tremendous power that prepaid reward cards have toward building loyalty. When those surveyed were asked how they preferred to be rewarded for their purchases, they overwhelmingly chose prepaid gift cards in denominations of:

  • $25 (45 percent)
  • $50 (51 percent)
  • $100 (56 percent)

The second most desired prepaid gift card reward type was an Amazon Gift Code:

  • $25 (38 percent)
  • $50 (32 percent)
  • $100 (27 percent)

During the study, researchers found that prepaid cards, unlike rewards paid via check or PayPal, provided a tangible, branded benefit. They also noted that 66% of respondents preferred physical gift cards over digital e-cards.

The reason participants love gift card rewards so much is that they can purchase anything they want with them, anytime they want it. When your participants are able to go out and spend their gift card/prepaid debit card/gift card e-code on the things they want most, they draw an emotional connection the items they purchase with them with your incentive reward program. Also, it’s worth noting that digital gift card use may be still “emerging,” because the survey found that 54% of consumers have never heard of mobile gift cards or e-codes. So use them judiciously.

Gift cards, prepaid debit cards, and gift card e-codes are valuable to you as an incentive program sponsor because they motivate your participants to want to perform the behaviors you ask of them so they can earn their gift card and prepaid debit card rewards, opening the door for limitless rewards and allowing them to use them on whatever they desire. Opponents of gift cards may argue that people typically spend their gift cards on other, and that it diminishes the trophy value of the reward, but the study found that an overwhelming 72% of those who receive a gift card will mainly use it for themselves, and 45% of shoppers will spend more than the value of the gift card at the time of redemption. That means that gift cards are good for your business, and good for the economy too!

Gift cards and prepaid debit cards have been the number one desired gift for people since 2005, and it’s easy to see why with the limitless variety of cards currently available. They’re even more popular and effective when paired with a well-designed incentive reward program!

I hope you have found all of this information on creating loyalty among your clients and distributors with prepaid gift cards valuable.

Steve Damerow

CEO, The ISI Group of Companies

1-866-567-7432

Incentive Solutions

2299 Perimeter Park Drive

Suite 150

Atlanta, GA 30341

Incentive Solutions


About Nichole Gunn

Nichole Gunn is the VP of Marketing at Incentive Solutions, an Atlanta-based incentive company that delivers advanced, agile B2B customer loyalty and channel sales incentives programs.