Kroger is expanding its business-to-business prepaid card offerings through an enhanced partnership with Blackhawk Network. The agreement adds Mastercard and Visa prepaid cards to Kroger’s bulk gift card program through Blackhawk’s Velocity B2B Software as a Service (SaaS) platform, providing businesses with additional options for purchasing and distributing prepaid rewards.
The Kroger Blackhawk Network partnership comes as the prepaid industry looks for new growth opportunities following pandemic-related challenges in closed-loop gift card sales. By expanding into open-loop prepaid products, Kroger can better serve corporate customers seeking flexible solutions for employee rewards, consumer promotions, incentives, and charitable distributions. The Velocity B2B platform also supports high-volume purchasing and customization, helping businesses streamline their prepaid card programs.
Kroger Expands B2B Prepaid Card Offerings with Blackhawk Network
In a move to accelerate growth of its B2B gift card offer, Kroger has expanded its partnership with Blackhawk Network to add Mastercard and Visa prepaid cards through the Velocity B2B Software as a Service platform. As the Mercator 2022 Outlook: Prepaid identified, the pandemic negatively impacted closed-loop sales. Solutions like the Kroger and Blackhawk Network agreement allow for Kroger’s non-retail customers to spur growth in their prepaid card business ,as highlighted in Progressive Grocer.
“While the B2B gift card market in the U.S. is already estimated to be nearly $30 billion, there is no doubt that there is still a lot of room to grow,” said Tom Boucher, head of Velocity B2B at Blackhawk Network. “Through our complete, comprehensive gift card solutions for business buyers, we’re helping merchants like Kroger stay ahead of the game.”
Velocity B2B Platform Supports Bulk Prepaid Card Purchases
In addition to tapping into the B2B market with new products, the utilization of a SaaS platform and Visa and Mastercard branded cards allows both Kroger and the purchaser to reduce risks associated with utilization of prepaid cards while providing customer with the ability to customize orders in a high volume environment.
The Kroger Blackhawk Network partnership expands the retailer’s ability to serve corporate customers seeking flexible prepaid payment and incentive solutions. By adding Mastercard and Visa prepaid cards to its bulk purchasing program, Kroger can offer businesses more choices for distributing rewards, promotions, and other forms of prepaid value.
The use of Blackhawk’s Velocity B2B platform also highlights the growing role of technology in commercial prepaid programs. SaaS-based solutions can simplify high-volume ordering, support customization, and help businesses manage prepaid card distribution more efficiently while addressing operational risks.
As the B2B gift card market continues to develop, the Kroger Blackhawk Network partnership positions both companies to pursue opportunities beyond traditional retail gift card sales. The combination of expanded prepaid products and streamlined purchasing capabilities supports continued growth in corporate rewards and incentives.
Overview by Jordan Hirschfield, Director of Research at Mercator Advisory Group
