Physical vs digital gift cards – pros and cons

Physical vs Digital Gift Cards: Pros and Cons

Gift cards have become a very common choice for corporate gifting, employee rewards and customer engagement. Two main formats dominate this space: physical gift cards and digital gift cards. Both have clear strengths, and the right choice depends on the occasion, audience and distribution method. Solutions such as Hubble’s physical gift cards make it easier for brands and organisations to use the offline format without getting stuck in operational details.

What Are Physical Gift Cards

Physical gift cards are printed plastic or paper cards that carry a code or value and can be handed over in person or shipped. They feel tangible, presentable and are often treated like a premium gift. For brands, they also act as a small but visible branding touchpoint at the recipient’s home, wallet or store.

• Ideal for in-person events and ceremonies
• Suitable for offline retailers and brand-led experiences
• Can be packaged with envelopes, kits or gift boxes
• Work well as part of welcome packs or hampers

Platforms such as Hubble’s physical gifting portal help businesses order these cards in bulk and manage printing, packing and delivery from one place.

What Are Digital Gift Cards

Digital gift cards are issued and delivered online. They are usually sent through email, SMS or a shareable link and can be stored on a phone or in an inbox. They are often preferred for fast campaigns, remote teams and large-scale programmes where speed matters.

• Instant delivery to recipients
• No printing or courier handling
• Easier to track and report in real time
• Very helpful for last-minute gifting

Pros of Physical Gift Cards

• Tangible presence: The card can be handed over on stage, in meetings or at events
• Premium feel: Works well for VIP guests, partners and senior leaders
• Packaging options: Can be paired with boxes, ribbons, notes or other branded elements
• Useful for offline locations: Particularly effective for brands that rely on store-based redemption

Cons of Physical Gift Cards

• Printing and logistics add time and cost
• Risk of loss or damage during transport
• Harder to use for urgent or same-day needs
• Inventory planning is required for high volumes

Pros of Digital Gift Cards

• Near-instant delivery across cities and countries
• No physical storage or stock management
• Easy integration with CRM, HRMS or campaign tools
• Simple tracking of sends and redemptions

Cons of Digital Gift Cards

• Less ceremonial for on-stage or formal presentations
• Emails and SMS can sometimes be missed or lost in inboxes
• Not ideal in settings with low digital comfort or poor connectivity

Which Format Should You Choose

If you are planning an event, conference, on-ground activation or in-store activity, physical gift cards usually create a stronger presence and feel more memorable in that setting. If your recipients are remote, spread across geographies or you want quick fulfilment, digital cards are often a better fit.

Many organisations use a mix of both. They rely on physical gift card solutions for events and offline partners, and digital gift cards for ongoing rewards, loyalty and referral programmes. The best choice depends on your campaign goals, timelines and the way you interact with your audience.