Gift Cards as a Rewards Foundation (Not a Consumer Product)
Published
December 22, 2025
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Rethinking Gift Cards
In consumer contexts, gift cards are treated as gifts.
In FinTech systems, gift cards function as programmable value units.
They act as controlled instruments for distributing value without holding cash balances.
Why Gift Cards Are Used in Rewards Systems
Gift cards offer:
- fixed denominations
- predictable settlement
- brand choice for users
- low regulatory overhead compared to wallets
- controlled redemption paths
These properties make them suitable for rewards infrastructure.
Gift Cards vs Cashback vs Wallet Credit
This is why many Indian FinTechs default to gift cards for rewards.
Infrastructure Challenges with Gift Cards
At scale, gift cards introduce challenges:
- partner availability
- redemption failures
- fraud and resale
- reconciliation delays
- expiry and breakage accounting
Infrastructure platforms exist to manage these complexities.
How Infrastructure Platforms Use Gift Cards
Platforms like Hubble:
- aggregate multiple brands
- standardise redemption APIs
- monitor failures and abuse
- manage settlement cycles
This allows gift cards to function as reliable reward rails rather than consumer products.
tldr;
Short summary
In FinTech, gift cards act as programmable value units—not just gifts—enabling controlled, compliant distribution of rewards. Their fixed value, predictable settlement, and regulatory simplicity make them ideal for reward systems. Platforms like Hubble manage gift card aggregation, redemption, and reconciliation at scale, turning them into reliable infrastructure for digital rewards.
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