Different Types of Gift Cards You Need to Know – Updated May 2025

The gift card market is said to have reached $474 billion by 2024 and is projected to grow to $510 billion by 2025. With the popularity of online shopping and e-gifts, this didn’t catch me by surprise!

A gift card is a pre-loaded card that can be used to replace cash payments during shopping.  Gift cards are a convenient way to give gifts that satisfy individual needs and interests. This is why they come in different categories and types to meet specific needs, like the purchase of gaming contents, beauty products, trendy wears, tech gadgets, meals, groceries, and many others. 

In this article, you will get an in-depth understanding of all types of gift cards, including their categories and forms. This will guide you to make the perfect gift choice either for yourself or a loved one. I have also included the functions and how to sell your gift card for cash in Nigeria. Let’s explore!

4 Gift Card Categories

All gift cards can be grouped into two categories, namely:

1. The open-loop gift cards
2. The closed-loop gift cards
3. E-gift cards 
4. Physical gift cards

What is an Open-Loop Gift Card?

Open-loop gift cards, as the name implies, are gift cards that are open to all merchants and retail stores. In other words, they can be used to make purchases anywhere they are accepted. They function like normal debit cards and are issued by payment networks. 

Examples of open-loop gift cards are Visa, Mastercard, American Express, and Discover. 

What is a Closed-Loop Gift Card?

“Closed-loop gift cards” are gift certificates that are used as payment methods at one particular retail store. You can also call them a “single-purpose gift card”.

“Closed-loop gift cards” can be used on websites like Amazon, Apple, Steam, Nike, and other local stores.

What is an E-Gift Card?

An E-gift card is the digital form of a physical gift card. Instead of receiving a plastic card, a digital code is sent to the recipient via email or SMS.

What is a Physical Gift Card?

A physical gift card is the direct opposite of E-gift cards. They are tangible and usually plastic cards that can be held and touched. They can be used to shop both online and in physical stores with their sealed back code.

15 most Popular Types of Gift Cards in Nigeria and their Uses

1. Steam Gift Card – Upgrade your PC gaming
2. Walmart Visa Gift Card – Shopping on the move
3. Razer Gold Gift Card – Refresh your gaming experience
4. Visa Gift Card – No restriction on shopping
5. Foot Locker Gift Card – Sneakers at your fingertips
6. iTunes Gift Card – Access to entertainment at Apple
7. Google Play Gift Card – Endless Android app downloads
8. American Express Gift Card – Spending accepted by all
9. Nike Gift Card – Sporty looks unveiled
10. Sephora Gift Card – Beauty at its peak
11. Nordstrom Gift Card – High-end fashion treats
12. Macy’s Gift Card – All-in-one delight
13. Amazon Gift Card –  Endless online shopping
14. eBay Gift Card – Shop anything you can think of.
15. Vanilla Gift Card – Flexible spending

Functions of Gift Cards

1. Get more Clients

Gift cards entice customers who patronize your competitors to have a look at your services and products. Future returns for more purchases could follow from this.

2. Boost Brand Recognition

Most gift cards, if not all, are made to carry the company’s logo. Therefore, the more people buy gift cards, the wider the audience your brand reaches.

3. Increased sales

Most gift cards come with preloaded value, but this doesn’t stop many users from spending more. Customer entry and product browsing are encouraged by the gift card. As soon as they start browsing, more products entice them and possibly cost a little bit more than the amount on the gift card. 

4. Reduce fraud

Using a digital gift card enables a part of the redemption value, which leads to a remaining gift card balance without cash back. Gift cards can also be used to purchase store credit, reducing the fraud committed when clients attempt to exchange expired refunds for cash. 

How to Sell Gift Cards for Cash in Nigeria

Gift card trading is a common phenomenon in Nigeria. This is because most gift card retailers are foreign, and their stores are not often easily accessible from Nigeria. Moreover, converting gift cards to cash is more profitable for most Nigerians.

Follow the steps below to sell your gift cards for cash in Nigeria:

1. Visit the Nosh platform or download the Nosh App

2. Register to create an account

3. Confirm your email

4. Log in and navigate to the Buy/Sell Gift Cards option

5. Tap the Sell Gift Cards option

6. Select the category and sub-category of your gift card

7. Upload gift card images

8. Proceed to complete the transaction details

The Naira equivalent of your gift card will be sent to your local account in less than 10 minutes. 

Frequently Asked Questions about All Types of Gift Cards

1. How many types of gift cards do we have?

Gift card types are numerous, but they can be categorized into four basic forms:

• Open-loop gift cards
• Closed-loop gift cards
• E-Gift cards
• Physical gift cards

2. What is the most popular gift card?

Amazon is recorded to have consistently ranked highly popular because of its high level of versatility, flexibility, and up to a 5% discount. The second most popular gift card is the Visa gift card.

3. What is a Nosh gift card?

Nosh is an innovative platform that offers gift card brokerage as one of its services. It is one of the most secure and reputable gift card trading sites in Nigeria. Other services provided on the Nosh platform include digital remittance and bill payments.

4. What are the types of gift cards in the USA?

The top 5 most popular types of gift cards in the USA are:

1. Retail gift cards
2. Entertainment gift cards
3. Online shopping gift cards
4. Travel gift cards
5. Beauty and Spa gift cards.

Final Note

As 2025 unfolds, remember that no gift is as perfect as a pre-loaded package that suits passions and preferences. Whether it’s a spa treat, wardrobe upgrade, or simply covering everyday needs, the diverse world of gift cards offers the best solution. 

And for those holding onto unused gift cards, platforms like Nosh provide a seamless process to convert your gift cards to Naira.

Therefore, with the options of E-gift cards, physical gift cards, open, and closed-loop gift cards, let your gifting be as versatile as the options themselves. Happy gifting!