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Why Third-Party Gift Card Distribution Is a Smart Growth Strategy for Brands

A man wearing glasses and a light blue shirt stands on an upper-level balcony inside a stylish, modern resto-bar. He is smiling and looking out over the warmly lit space below, which features elegant lighting, a large chandelier, wooden tables, and patrons dining. The atmosphere is vibrant and upscale, with contemporary decor and natural light streaming through large windows.

Brands with gift card programs already know the value of gift card sales, but some are missing out on the significant opportunities available through third-party distribution. The strategic advantages of brands including gift cards in both first-party and third-party channels shouldn’t be overlooked.


Operational Efficiencies


For brands that already operate a gift card program where customers can buy cards in store or online, this is what’s known as first-party sales. Adding third-party sales distribution is the logical addition to first-party sales that allows growth without expanding existing infrastructure. With systems and processes already in place, third-party distribution helps the operations of brands grow and benefit from economies of scale. With increased sales volumes, brands can improve margins in card printing, inventory management, transaction costs, and more.


Financial Benefits


Gift card programs are already a strong financial tool for brands, and third-party distribution enhances this even further. First, transaction costs are typically lower for gift cards than with other payment methods. Second, when a customer or company purchases gift cards through a third-party channel, brands receive funds immediately, usually well before the card is redeemed for products or services. This cash flow benefit and transaction cost savings adds flexibility and financial strength to business operations.


Marketing Benefits


Gift card distribution through third-party channels is also a powerful marketing lever. It grants brands access to dynamic and growing ecosystems where customers are already shopping for gift cards. These ecosystems span multiple use cases:

  • Employee gifts and rewards
  • Sales incentives
  • Client thank-you gestures
  • Payments and disbursements
  • Social and food insecurity assistance
  • Customer service appeasement
  • Marketing and promotional programs
  • And many more

Being present in these channels elevates brand visibility and mindshare. Third-party gift card programs attract new customers and encourage loyalty from existing ones. For those buying for self-use, it often reinforces brand preference. Additionally, when a customer gives a card as a gift, they’re offering a personal endorsement, essentially word-of-mouth marketing with a monetary value attached. It’s one of the strongest forms of brand advocacy available.

Best of all, this is performance-based marketing. Costs are only incurred when a sale is made, and usage data provides clear metrics to assess ROI. Unlike many marketing programs, third-party gift card distribution is trackable, transparent, and results-driven.


Why Participating in Fundstream’s Distribution Channels is an Easy Choice


Fundstream has been a trusted leader in Canadian gift card aggregation, distribution, and fulfillment for over 20 years. Fundstream’s experience and infrastructure make it easy for brands to tap into third-party opportunities quickly and securely.

We offer three distinct distribution channels tailored to maximize reach and impact:

  • Fundraising: FundScrip, a Fundstream-operated leading gift card fundraising platform, connects brands with cause-based communities
  • Incentives: For corporate clients, employee programs, and more, Fundstream operates a self-serve bulk purchasing platform called Gift Card Warehouse.
  • Fulfillment Client Network: Fundstream's gift card fulfillment services are used by a variety of Canadian rewards and loyalty programs.

Fundstream is trusted by many of Canada’s top brands, offering a bilingual platform, institutional reach, and full Canadian market compliance. Our platform is designed for performance, security, and a seamless customer experience.


Adding third-party gift card distribution to any existing gift card program is a low-investment, high-return strategy that unlocks new sales channels, improves operational efficiency, enhances cash flow, and strengthens marketing efforts. With Fundstream’s turnkey platform and proven expertise, it’s never been easier to take a gift card program to the next level.