September 15, 2025

Digital vs. Physical Gift Cards: Choosing the Right Format for Your Corporate Program

Compare digital and physical gift cards for rewards. Discover the best format for your team with Assembly’s new program.

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Gift cards have become a cornerstone of modern corporate rewards, employee recognition, and client appreciation programs. As organizations look to maximize engagement and streamline operations, the question arises: should you choose digital or physical gift cards for your corporate program? The answer depends on your goals, audience, and the experience you want to deliver.

In this article, we’ll break down the pros and cons of each format, offer a practical decision framework, and introduce Assembly’s soon-to-launch gift card program designed to make corporate gifting effortless and impactful.

The Rise of Corporate Gift Cards

Gift cards are popular for a reason: they’re flexible, universally appreciated, and easy to distribute. As remote and hybrid work models become the norm, digital solutions are gaining traction, but physical cards still hold a special place for certain occasions. Understanding the strengths and limitations of each format is key to building a successful rewards program.

Digital Gift Cards: Fast, Flexible, and Scalable

What are digital gift cards?

Digital (or eGift) cards are virtual codes delivered via email, text, or within a platform. Recipients redeem them online or in-store, just like a physical card.

Advantages:

  • Instant Delivery: Send rewards in seconds, perfect for remote teams or last-minute recognition.
  • Cost-Effective: No printing or shipping costs, making it budget-friendly for large-scale programs.
  • Easy Tracking: Real-time analytics and tracking simplify program management and compliance.
  • Eco-Friendly: No plastic or paper waste.
  • Customizable Experience: Platforms like Assembly allow you to add animations, personalized messages, and even kudo boards for a memorable moment of delight.
  • Self-Service Options: With Assembly, you can send 1:1 or 1-to-many gifts for free, automate gifting, and create e-cards for occasions like birthdays, anniversaries, and more.

Drawbacks:

  • Less Tangible: Some recipients may miss the physical “unwrapping” experience.
  • Digital Literacy Required: Not all employees or clients are comfortable with digital formats.
  • Potential for Email Issues: Spam filters or incorrect addresses can delay delivery.

Physical Gift Cards: Tangible and Memorable

What are physical gift cards?

These are traditional, plastic or paper cards delivered by mail or in person, often presented in branded packaging.

Advantages:

  • Tangible Value: The physical card feels more substantial and can make a bigger impression at in-person events.
  • Personal Touch: Handing over a card can be more meaningful for milestones like retirements or anniversaries.
  • No Tech Barriers: Ideal for recipients who prefer traditional rewards or lack digital access.

Drawbacks:

  • Higher Costs: Printing, packaging, and shipping add up, especially for distributed teams.
  • Slower Delivery: Physical cards can take days or weeks to arrive.
  • Risk of Loss or Theft: Cards can be misplaced or stolen before use.
  • Environmental Impact: Producing and shipping physical cards leaves a carbon footprint.

How to Choose the Right Format

Know Your Audience

Are your employees tech-savvy? Do they work remotely or on-site? For a distributed, digital-first workforce, eGift cards are often the best fit. For traditional or in-person teams, physical cards may resonate more.

Consider the Occasion

Milestone events (retirement, anniversaries) may call for a tangible card, while everyday recognition (thank you, congrats) is perfect for digital delivery.

Budget and Logistics

Digital cards save on costs and time. Physical cards require more planning and budget for production and shipping.

Brand Experience

Digital platforms like Assembly let you create branded, animated experiences and even allow recipients to send a thank you back, adding a layer of engagement that physical cards can’t match.

Flexibility

With Assembly, you can offer both formats, letting recipients choose their preference for maximum satisfaction.

Assembly’s New Gift Card Program: Effortless, Engaging, and Free to Start

Assembly’s new gift card program is designed to make corporate gifting simple, delightful, and accessible for any organization. Here’s what sets it apart:

  • Free to Sign Up: The first tier is free and included in all paid Assembly plans.
  • Self-Service Gifting: Send 1:1 or 1-to-many gifts and cards at no cost. Recipients can receive via text, email, or within the Assembly platform.
  • Automated Gifting: For company-wide automation, talk to Assembly’s sales team.
  • E-Cards & Kudo Boards: Create customizable, animated e-cards for any occasion—thank you, retirement, birthday, anniversary, marriage, and more.
  • Flexible Gifting Options: Send money for the full catalog, specific categories, or curated rewards. Choose from gift cards, swag, or personalized experiences.
  • Delightful Receiving Experience: Recipients enjoy animated moments and can easily send a thank you back to the sender.
  • No Hidden Fees: Enjoy robust gifting features without extra costs.

Ready to see how Assembly can transform your corporate gifting? Schedule a demo with Assembly today!

FAQs

What are the benefits of digital gift cards for employee rewards?

Digital gift cards offer instant delivery, easy tracking, lower costs, and are ideal for remote or global teams. They can be personalized with messages and animations, making recognition more engaging.

Are physical gift cards still relevant for corporate programs?

Yes, physical gift cards remain popular for in-person events, milestone celebrations, and for recipients who prefer tangible rewards. They offer a memorable, personal touch but come with higher costs and slower delivery.

Can I use both digital and physical gift cards in my corporate program?

Absolutely. Many companies offer both options, allowing recipients to choose their preferred format. This hybrid approach maximizes satisfaction and accommodates diverse needs.

How does Assembly’s gift card program work for businesses?

Assembly’s program is free to sign up and included in all paid plans. It offers self-service gifting, automated options, customizable e-cards, and a delightful recipient experience—all managed from a single platform.

Browse our Free Employee Recognition Guide

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Frequently Asked Questions

Is Assembly SOC 2 compliant?

Yes, at Assembly, security is a top priority. Each quarter, we have ongoing security work that is everyone’s responsibility. While we maintain a strong security posture, it was important for us to prove to our customers that we do everything we claim to do. This led us to pursue a SOC 2 Type II report that would provide evidence of our compliance with industry gold-standard security practice.

What's the ROI for employee recognition?

There is study after study showing that employee recognition leads to increased engagement. This in return creates an environment where employees are happier and more motivated which increase productivity and reduces voluntary turnover significantly. In order to filled critical roles, companies tend to spend nearly twice the value of an annual salary. Assembly is an investment in your employees that supports your bottom line.

Does Assembly offer longer-term contracts?

Yes, we will offer contracts for companies with longer-term agreements to help larger customers have more certainty around future costs.

The minimum agreement term is a 12-month subscription.

Does Assembly offer onboarding support?

We do and for FREE! Any new customer needing further support to get started with Assembly to ensure you're set up for success can request custom onboarding support. Improving your employee experience is about much more than just using our amazing software; it’s about transforming your business to create a workplace that people love. That’s much easier to do with the personal support and advice from our passionate people experts.

How much do rewards cost?

At the time of redemption (when your employees exchange their points for a paid reward) you'll pay face value. If a reward is a $10 Amazon gift card, your cost will be $10. All paid rewards are billed for on a monthly basis.

The good news is that you don't have to pay for rewards upfront because we only charge you when points are redeemed, not when they're earned.

Does Assembly offer discounts?

We offer discounts or educational or charitable organizations. In order to secure a discount, you'll first need to book a demo with a customer support specialist.

For all other organizations, we are willing to consider longer-term agreements in exchange for discounts. To set up annual plans or longer, you will need to book a demo with a customer support specialist.

How do I cancel my plan if needed?

If you're on a month to month plan, you can go here and cancel anytime. If you're having concerns or need help setting up your account for success, you can always book a demo with a customer support specialist.

If you're on a longer-term custom plan, you'll need to reach out to your customer support specialist to cancel your account or email us at support@joinassembly.com.

What customizations are available?

Great question! You can customize your core values to match your organization's to boost and track alignment. You can change your currency from the 🏆 emoji (our default) to any emoji of your choice. You can swap our logo for your own. You can also set up company culture rewards such as, "Lunch with the CEO," "Buy a book on us," and so much more!

Who can give or receive recognition?

While we recommend a peer to peer set up where anyone in your organization can give or receive recognition, you can set up Assembly however you want. If you need to limit the people who can give or receive recognition, that's perfectly fine and can be done from your Admin, here.

What integrations are available?

Assembly connects to the tools your employees use every day to offer an easy, seamless experience with minimal change management.  

Assembly has integrations with HCM/HRIS systems like ADP, Google, Office 365, and Slack. We also integrate with communication tools like Slack and Teams so you and your employees can access Assembly wherever they work now.

What's your average adoption rate?

That depends on the company's permissions set up. That said, over 90% of the employees on Assembly's platform are recognized on a monthly basis. That means nearly every employee across all of our customers are receiving regular recognition from their peers, managers, or leadership. We're extremely proud of this.

Must rewards be set up to use Assembly?

They are not required. You can use Assembly without having rewards set up. However, we don't recommend it if you intend to have a high adoption and usage rate. You can always keep the costs down by offering internal culture rewards that are fulfilled by you internally.

Are points required to use Assembly?

No, you can remove allowances from anyone or everyone. It's up to you but we do recommend using points whether they're worth a real dollar value or not. Companies that use points have a much higher engagement rate even if those points don't exchange for real dollars.

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