Why gift cards are a smart growth strategy for businesses
Discover how gift cards help small businesses increase cash flow, attract new customers, and drive repeat visits using the Moneris Gift Card Program.
Education, gift cards
Why gift cards are a smart growth strategy for businesses
May 06, 2026
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As consumer expectations continue to evolve, small businesses are finding new ways to attract customers, encourage repeat visits, and grow revenue without adding operational complexity. One solution that continues to gain momentum across Canada is gift cards.
Gift cards have become a popular choice for both buyers and recipients because they can be redeemed in‑store or online, offer flexibility, and remove the guesswork from purchasing decisions. This shift is reflected in the broader market. The Canadian gift card market is projected to reach approximately US$8.4 billion in 2025, driven by steady adoption from small and mid‑sized businesses and increasing demand for digital options.
Consumer behaviour further reinforces their value. According to Moneris data, 75 per cent of people who redeem gift cards spend more than the value loaded onto the card, resulting in higher transaction values for businesses.
If you’re a small business owner looking to grow, increase cash flow, and attract new customers, a gift card program can help you unlock additional revenue that might otherwise be missed.
Key benefits of offering gift cards at your small business
1. Creating brand awareness
Small businesses are always looking for cost‑effective ways to stay top of mind. Gift cards act as a physical and digital extension of your brand, carrying your business name and logo directly into customers’ wallets and inboxes.
Each time a gift card is shared or redeemed, it drives awareness and encourages customers to visit your store or website. Moneris gift cards support both in‑store and online redemption, giving customers multiple ways to engage with your business.
Pro tip: To increase visibility in‑store, display your gift cards near the checkout or register. Moneris merchants receive a complimentary gift card display stand with their first order, along with premium envelopes included with every card.
2. Increasing immediate cash flow
Gift cards generate revenue at the time of purchase, not at redemption. This means businesses receive funds upfront, helping support cash flow and day‑to‑day operations.
Moneris gift cards integrate directly with existing Moneris POS terminals, so businesses can start selling gift cards without purchasing additional equipment or changing existing workflows.
3. Flexibility and ease of setup
Gift cards are easy to implement and manage. Physical cards can be activated and loaded directly from your Moneris terminal using the same transaction flow as debit or credit cards.
For businesses that sell online, Moneris eGift cards provide a digital option that can be integrated into your website using a secure iFrame. This allows customers to purchase and send gift cards instantly by email or text, expanding your reach beyond in‑store transactions.
4. Encouraging customer loyalty and repeat visits
Gift cards naturally drive customers back to your business. Once a recipient receives a gift card, redemption requires a visit to your store or website.
Moneris reports that over 70 per cent of gift cards are redeemed within six months, helping businesses maintain steady customer traffic and repeat engagement.
Gift cards can also be used as loyalty incentives, such as rewarding frequent shoppers or thanking customers for higher‑value purchases.
5. Attracting new customers through word of mouth
Gift cards function as a form of built‑in advocacy. When existing customers purchase gift cards for friends, family, or colleagues, your business is introduced to new customers without the cost of traditional advertising.
Because Moneris gift cards are closed‑loop and redeemable only at your business, this exposure results in direct store or website visits rather than diluted brand awareness.
6. Appealing to modern, digital‑first consumers
Canadian consumers increasingly expect flexibility and digital payment options. Market research shows ongoing growth in digital and hybrid gift cards as consumers look for convenient, mobile‑friendly ways to shop and pay.
By offering both physical gift cards and eGift cards, businesses can meet customers where they are while supporting both in‑store and online sales.
7. Increasing basket size at redemption
Gift cards do more than bring customers through the door. They also increase how much customers spend. Moneris data shows that gift card recipients are 2.5 times more likely to pay full price than customers paying with cash or credit, helping businesses protect margins while increasing basket size.
8. Reducing the risk of fraud
Security is top of mind for both merchants and customers. Moneris gift cards remain inactive until activated at the terminal, making them more secure than paper certificates or informal store credits.
This added protection is important as gift card fraud losses in Canada exceeded $6.8 million in 2024, according to the Canadian Anti‑Fraud Centre CAFC. Moneris eGift cards also include built‑in fraud prevention tools to help protect online transactions.
Why gift cards work for Moneris small business merchants
Offering Moneris gift cards can increase your bottom line by delivering:
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Immediate cash flow from gift card sales
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Low‑cost customer acquisition through word of mouth
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Higher basket sizes at redemption
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Built‑in store and website visits from recipients
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High ROI with low operational effort, using existing Moneris POS and ecommerce tools
With the Canadian gift card market continuing to grow, gift cards remain a simple, scalable way for small businesses to drive revenue and customer retention year‑round.
Thinking about adding gift cards to your business? Check out Moneris gift card solutions to offer secure, customizable gift cards that work in‑store and online.
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