Why gift cards deserve your attention
The gift card market is experiencing strong and sustained growth. According to several recent market studies, the global gift card market was already worth close to $1 trillion in 2024 and could exceed $2 trillion by 2034, with annual growth rates estimated between 9% and over 14%, depending on projections.
For merchants, the impact is far from marginal: in some fashion retail brands, gift cards account for up to 4% of total revenue (Monext data).
These figures raise a natural question for ecommerce merchants: how can you accept gift cards and integrate them effectively into your payment flow? This article walks you through the process and highlights the key success factors.
Understanding the gift card ecosystem
Before integrating gift cards into your online store, it is essential to understand the main types of solutions available.
Closed-loop gift cards
Closed-loop gift cards are specific to your brand. Customers can purchase them as gifts and redeem them exclusively in your store. This model strongly supports loyalty and ensures that funds remain within your commercial ecosystem.
The main advantage lies in full control over the customer experience and the certainty that every unit of value will be spent with your brand. These gift cards can be issued in physical or digital form, depending on your needs.
Multi-brand gift cards
Multi-brand gift cards operate differently. Accepting these cards means joining a wider ecosystem and gaining visibility among customers who may not have discovered your brand otherwise. In practice, multi-brand gift cards are an effective acquisition channel, introducing new customers through gifting. They are available both as physical cards and digital formats delivered by email or SMS for immediate use.
Monext enables merchants to accept several widely used gift card solutions, including Cadhoc, Illicado, Up Gift Card and Sodexo, simplifying access to this high-potential market.
Tangible benefits for ecommerce businesses
Increasing average order value
One of the most immediate benefits of gift cards is their impact on basket size. According to the BuyBox report “2024 Gift Card Market Figures”, 41% of gift cards generate an additional payment, with an average top-up of €74.
This behaviour is driven by purchasing psychology: customers are more inclined to spend beyond the gifted amount, adding extra items to their basket and increasing transaction value.
Acquiring new customers
Every gift card represents a personal invitation to discover your brand. The recipient, influenced by the implicit recommendation of the gift-giver, is more likely to make a first purchase.
Gift cards therefore act as a low-friction acquisition channel, lowering the barrier to entry and encouraging first-time conversions.
How to accept gift cards
Direct integration: a tailored but demanding approach
One option is to build direct integrations with each gift card issuer. This means developing a dedicated connector for every scheme you want to accept. For example, accepting Cadhoc, Illicado and Up Gift Card would require three separate integrations.
This approach comes with significant technical constraints. Each issuer provides its own gift card API, with specific authentication methods, data formats and operational rules.
Managing mixed payments adds further complexity. When a gift card does not cover the full purchase amount, you must orchestrate a combined transaction: checking the balance, debiting the available amount, and triggering a second payment for the remainder. Each scenario requires custom logic, increasing development effort and operational risk.
Using a payment service provider: a turnkey solution
The alternative is to rely on a payment service provider (PSP) such as Monext. This approach dramatically simplifies integration.
From the merchant’s perspective, a single integration is sufficient to accept all supported gift card solutions. Instead of building and maintaining multiple connectors, you connect once to the Monext platform.
All gift card connectors are already developed, tested and continuously maintained. When an issuer updates its API or a new scheme is added, Monext handles the changes transparently.
Mixed payment processing becomes seamless. The platform natively manages scenarios where customers combine a gift card with a card payment, PayPal or another method. Balance checks, partial debits and complementary payments are handled automatically, ensuring a smooth checkout experience.
Ensuring a successful integration
Once the technical foundation is in place, two factors determine success: checkout experience and promotion strategy.
Delivering a smooth checkout experience
Gift cards should be clearly visible at checkout without overwhelming the interface. Too many options can reduce conversion. Features such as Monext’s Smart Display help surface the most relevant payment methods based on context.
Partial payments must be frictionless. When a gift card does not cover the full amount, the remaining balance should be clearly displayed and alternative payment options offered immediately.
Mobile compatibility is essential. With the continued rise of mobile commerce, the gift card experience must be optimised across all devices. A complex mobile flow leads directly to abandonment.
Promoting gift cards effectively
Timing matters. According to the National Retail Federation (2023), 55% of holiday shoppers want to receive a gift card. Beyond Christmas, key moments include Valentine’s Day, Mother’s Day, birthdays and sales periods.
Performance tracking is equally important. Monitor ecommerce KPIs such as gift card conversion rates, redemption rates and average top-up amounts. These insights guide optimisation and campaign adjustments.
Take action: integrate gift cards into your payment strategy
Gift cards are now a proven growth lever for ecommerce merchants. They increase average order value, attract new customers and strengthen loyalty. Integrating them into your payment journey directly addresses evolving consumer expectations.
Three elements are critical to success: a reliable technical integration, strong visibility within the checkout and ongoing performance monitoring. Combined, they turn gift cards into a sustainable competitive advantage.
With a fast-growing market and mature technical solutions, adopting gift cards today positions your business as modern and customer-centric.
Monext supports merchants through native integration of leading gift card solutions and dedicated technical support. Contact us to discuss your project and choose the gift card solution best suited to your business.
