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Digital vs Physical Mastercard Gift Cards for Employees & Corporate Rewards

~6min reading time
digital gift cards

Both digital and physical gift cards are excellent options for employee rewards. While physical gift cards provide a tangible feel, digital gift cards deliver instant accessibility and more flexibility for modern teams.

Recognising and rewarding employees for their efforts is as crucial as any other business activity. Appreciation not only shows respect for their contributions but also drives higher motivation. Studies show that nearly 83% of employees feel that recognition affects their motivation to work.

Today, the question isn't whether to reward employees; it is about choosing the most effective way to do it. Among the many options, Mastercard gift cards have become a favorite for corporate rewards. In fact, the global gift card market is estimated at USD 1.24 trillion in 2025.

The real decision now lies in selecting between Digital and Physical Mastercard gift cards. While physical gift cards gain the charm of a tangible gift, digital gift cards continue to gain momentum in a world where teams are distributed geographically. Let's look at both these options in detail to find out the best choice for corporate rewards.

What Are Mastercard Gift Cards?

Like the name suggests, Mastercard gift cards are powered by the Mastercard network. This means that the card can be accepted anywhere Mastercard is accepted, both online and offline, and is prepaid.

  • A physical Mastercard gift card can be used like a regular debit card. It can be swiped at any point-of-sale machine where Mastercard is accepted, worldwide.
  • Digital Mastercard gift cards can be delivered instantly via email and linked to digital wallets, making them convenient for online shopping and in-store contactless payments.

Digital Mastercard Gift Cards For Employees

Digital Mastercard gift cards are a modern approach to employee gifting, suited for today's work dynamics. As more companies move towards hybrid and remote work models, access to talent across different geographies has expanded. This shift has created a need for reward solutions that are instant and scalable.

One of the biggest advantages of prepaid digital Mastercard gift cards for employees is their speed and convenience. They can be issued to employees instantly, making them an ideal choice for timely recognition. CleverCards offer digital gift cards that can be delivered instantly via email, and employees can then add them to their digital wallets and use them like a regular card.

Key Benefits Of Digital Mastercard Gift Cards Include:

1. Instant Recognition: Digital prepaid gift cards can be sent instantly. When an employee accomplishes something noteworthy, they can be recognised instantly with a gift card. They do not have to wait for days to be rewarded.

2. Affordable Gifting: There are no shipping, courier, or packaging costs involved. The real cost of gifting a digital gift card is the card and the gift value itself. This also means that companies can distribute digital cards at scale without worrying about extra overhead.

3. Enhanced Tracking: Digital gift cards also provide comprehensive tracking dashboards, both for employees and employers. Employees can track balances, and employers can track distribution and redemption rates.

4. Secure Option: With no physical card involved, the chances of it being lost or stolen are much lower. On top of that, they can be cancelled and reissued quickly and easily, giving both employers and employees a safer and more flexible gifting experience in today’s digital world.

Physical Mastercard Gift Cards For Corporate Rewards

While digital solutions are on the rise, physical Mastercard gift cards continue to hold their own importance in employee recognition. The act of receiving something tangible often carries a higher perceived value, making employees feel truly rewarded.

To order a physical Mastercard gift card, employers can place bulk or individual orders, and the cards are shipped either to the office or directly to the employees' addresses. Once received, employees can use these cards like a debit card, swiping them in-store or entering details to make purchases online.

Key Benefits Of Physical Mastercard Gift Cards For Employees Include:

1. Tangible Gift: Holding a tangible gift is psychologically satisfying. Physical gift cards bring the same sense of appreciation.

2. Premium Feel: Physical cards can be wrapped and presented in a special package. The weight, design, and presentation contribute to making the employees feel valued and appreciated.

While physical cards offer tangibility and a premium feel, these benefits should be compared against the flexibility, convenience, and cost savings of digital cards. In fact, a survey suggests that around 63% consumers prefer digital cards over physical ones due to their instant delivery feature.

Digital vs Physical Mastercards For Employee Rewards

Both digital and physical Mastercard gift cards have their own strengths and weaknesses. Choosing the right option depends on your business needs. Here is a comparison to help you choose the right gift card for your employees:

Key Differences
Physical Gift Card
Digital Gift Card
Delivery
Physical gift cards require shipping and distribution, which means delivery can take several days.
Physical gift cards require shipping and distribution, which means delivery can take several days. Digital gift cards can be delivered instantly via email or SMS. The card can then be instantly activated by adding it to smart wallets.
Usability
Physical cards can be used online or in-store where Mastercard is accepted, but the card must be carried everywhere.
Digital gift cards can also be used globally, both in-store and online. They can be stored in digital wallets.
Cost
Higher operational costs as it includes packaging, shipping, delivery, etc.
Low operational costs since no printing, packaging, or shipping is involved.
Security
The card is at risk of being stolen or lost.
Comparatively safer, as access is digital.
Sustainable
Less eco-friendly due to plastic production and the carbon footprint of postage and packaging.
Environment-friendly as no plastic production is involved.

Why Digital Mastercard Gift Cards Are Better For Employees?

Digital gift cards are designed to match the expectations of today's workforce. Employees no longer want to wait to be rewarded. In a world that is becoming increasingly digital, rewards should be frictionless, fast, and convenient.

Digital Mastercards like CleverCards do exactly that. They are delivered instantly and can be used globally. This makes recognition timely and meaningful, helping companies boost employee engagement even with remote teams.

Looking to buy a digital Mastercard gift card to reward employees? CleverCards offers just that. Fill out the form below to learn more.