Edenred Payment Solutions Launches Rapid Closed-Loop Gift Card Programme for Toolstation

Edenred Payment Solutions has deployed a new closed-loop gift card infrastructure for Toolstation, enabling the hardware retailer to unify its physical and digital commerce channels. For fintech professionals, this rollout demonstrates how API-first payment platforms can bypass traditional retail IT bottlenecks to launch complex, multi-channel loyalty and currency ecosystems in under two months.

What was announced

Edenred Payment Solutions has launched a comprehensive closed-loop gift card programme for Toolstation, one of the fastest-growing suppliers of tools and building materials in the United Kingdom. The new system is built upon Edenred’s API-based payments platform, providing Toolstation with end-to-end processing capabilities that bridge the gap between physical stores and digital storefronts.

The implementation was completed in a record timeframe of eight weeks, a significant benchmark for a retailer of this scale. The programme is designed to be fully omnichannel; customers can purchase and redeem the gift cards across Toolstation’s entire UK network, which consists of more than 590 branches. Furthermore, the integration extends to the Toolstation mobile app and its primary online website, ensuring a frictionless user journey without the need for external redirects during the checkout process.

Beyond simple transactions, the closed-loop architecture serves as a strategic tool for the retailer. It allows Toolstation to capture first-party data on customer spending habits across all touchpoints. The platform also automates trade rewards and service recovery efforts. By replacing traditional discount codes with a proprietary currency ecosystem, the retailer can manage unspent breakage as high-margin profit while ensuring that refunded or rewarded value remains within the Toolstation brand environment, thereby driving long-term customer retention.

"Integrating across 590+ branches and digital channels in just eight weeks proves that legacy retailers can bypass IT bottlenecks through agile API architecture. The native, frictionless checkout eliminates redirects, preventing cart abandonment and ensuring Toolstation retains total brand control over the user journey."

Rehana Mitha, Managing Director at Edenred Payment Solutions.

The companies involved

Edenred Payment Solutions is a prominent payment services provider that focuses on delivering agile, API-driven infrastructure for brands looking to integrate financial services into their existing customer experiences. The company provides the underlying technology that allows businesses to manage card processing, digital wallets, and bespoke payment ecosystems. By focusing on modular architecture, they enable partners to deploy complex financial products without the long lead times typically associated with legacy banking integrations.

Toolstation is a major player in the UK retail sector, specifically catering to the trade and DIY markets. As one of the country's fastest-growing suppliers of tools, building supplies, and hardware, the company has rapidly expanded its physical footprint to over 590 branches. The brand relies heavily on a high-velocity retail model where speed of service—both in-store and through digital apps—is a primary competitive advantage. This partnership with Edenred Payment Solutions represents a significant upgrade to their financial technology stack, moving away from fragmented systems toward a unified, brand-controlled payment environment.

What FF News has reported before

FF News has closely followed the technological evolution of Edenred Payment Solutions as they continue to remove friction from the digital payment experience. We previously covered the company's efforts to streamline virtual card adoption in Edenred Payment Solutions Launches Web Push Provisioning to Eliminate App-Based Virtual Card Friction and a related report, Edenred Payment Solutions Launches Web Push Provisioning to Kill Virtual Card Friction. Additionally, our coverage of the broader UK payments ecosystem includes Mastercard Launches Best-in-Class ‘BIN Sponsor Plus’ Programme to Support the Next Generation of U.K. Fintechs, which highlights the infrastructure shifts supporting firms like Edenred. We also noted leadership movements in the sector in MiFinity Appoints Payments Veteran Ray Brash as Group Chief Operating Officer to Drive Global Growth.

What this means

This move signals a shift in how large-scale retailers view "simple" products like gift cards. By opting for a closed-loop system powered by an API-first provider rather than a generic third-party processor, Toolstation is effectively creating its own internal economy. The eight-week deployment time is a direct challenge to traditional payment processors who often struggle with the complexities of 500+ physical locations. For the wider market, this puts pressure on other trade suppliers to modernize their loyalty and refund systems. Watch for Toolstation to leverage the resulting first-party data to launch more personalized trade credit or loyalty incentives, further locking in their professional customer base.