Gift Cards: Where Are They Going In 2023?

The gift card industry is expected to reach USD 1787 billion by 2026. Learn more about what is driving this growth and how businesses can benefit from it.

Published on 2023-02-03

Gift cards are here to stay. Businesses benefit greatly from this cost-effective, revenue-boosting, client-base generator strategy. Brands like, Apple, Target Corporation, Starbucks Corporation, Walmart, and many others are some of the most prominent players in the gift card marketplace. According to reports, this market will grow considerably in the next 5 to 7 years.

In this article, we will go over which consumer trends are fueling the growth of the gift card industry and how businesses can get the best out of it.

Consumer habits that drive the growth of the gift card industry

1. Personalization

The name “gift card” is no longer an apt name for what is happening in the market. It is common now for people to buy gift cards for themselves. What drives this? Well, personalization.

Consumers today value customization more than ever. Never before have we had the opportunity to experience tailored products and services as much as we do today. And we love it. Personalization is no longer a luxury reserved for the most exclusive clients. Everyone experiences marketing tailored to their interests and spending habits, so why wouldn’t they also expect a brand to go out of its way to suit them? Gift cards give consumers the sense that they are in control.

When gifting, you want the recipient to feel in control and satisfied. Because you value personalization, you understand others will too.

2. Convenience

Due to flexibility and convenience, many market transactions happen through smartphones. Consumers value their time and prefer to buy something with a click than spend time at a store selecting a gift. One of the best indicators that show gift cards are becoming more and more popular is the number of apps developed to manage gift cards. Today, you can download an app that allows you to upload gift card codes to use them while shopping.

3. Control

For some, buying gift cards for themselves allows them to have control over their budgets and financial goals. Many consumers are looking for gift cards to limit spending and help them stick to their budget. Others buy cards at a discount on sites like CardCookie to anticipate future expenses. Also, many take advantage of rewards offered by brands or credit cards. For instance, you could spend money on gift cards to reach the airline miles you need for an upcoming holiday and save the actual purchase for later.

Benefits for businesses that fuel gift card market growth

1. People spend more on gift cards than on gifts.

For a business, a gift card represents both the money spent by the person who purchased it and the amount the recipient will pay above the gift card’s value. Reports indicate that two out of three gift card recipients will spend at least 35% more than the value of the card.

2. People spend more than the gift card value.

Because the price tag is no mystery to the recipient, consumers tend to spend more on gift cards than they would on an actual gift.

3. Little investment

Businesses can put forth little investment and receive revenue and visibility at a low cost. What is more, gift cards increase customer flow and help a brand gain visibility without having to look for those new clients themselves.

A few tips for consumers

Now, as the gift card market expands, as a consumer, there are a few risks that can be easily avoided by becoming aware.

1. Fine print

Read the terms and conditions for the gift cards you buy to know what you’ll get.

2. Avoid scams

When a market becomes profitable, some will try to benefit from unfair and deceptive practices. Avoid losing money to gift card scams by doing the following:

  • Buy cards from trusted brands and reselling stores
  • Compare gift cards or emails with gift codes to the one you know is real
  • Save your gift card receipts
  • Never give anyone the gift card code by phone or text message
  • Only access secure websites with the lock icon, and check spelling to ensure you enter the right URL.
Looking to learn more smart ways to save money? Read all about it here. Or better yet