Until a few years ago, gifting was only about cash and commodities. But recently, the speedy adoption of the internet, increased online buying behavior, and a greater focus on convenience and practicality have resulted in notable growth in the gift card industry. In fact, digital gift cards have largely reimagined personal shopping, making both online and in-store shopping a truly gratifying experience.
What are Gift Cards?
A gift card is a standard gift voucher that contains a specific amount of funds available for making a variety of purchases. The recipient of the gift card can purchase any product or avail of any service of their choice from the card provider’s online or offline store.
In the past couple of years, gift cards have shifted from being just a simple gifting tool to a value-buying experience. With immense flexibility and versatility, these cards are becoming the new form of accessible digital currency. No wonder the digital gift card industry which was valued at $258.34 billion in 2020 is all set to reach $1101.03 billion by 2030, marking a CAGR of 15.8%.
Most Notable Benefits of Gift Cards
Gift cards often receive more appreciation than any other gift, even if you try to purchase them keeping the likes and preferences of the recipient in mind. Besides offering the joy of shopping, gift cards come with many other benefits that are as below:
- Complete freedom to choose: This is one of the greatest benefits of gift cards. They give the recipient full freedom to choose whatever they like from the card provider’s online or physical store.
- Quick and easy access: Digital gift cards are just like prepaid vouchers. You can simply swipe them in-store or provide an online code to make quick electronic payments.
- Safe and secure: Gift cards work just like debit cards. In case they are lost or stolen, you can freeze the card, ensuring you don’t lose any money in it.
- Convenience: Digital gift cards are often issued directly to the recipient’s email address or mobile phone. Thus, the recipients don’t have to carry them anywhere with them. They simply need their smartphone to quickly access the gift card.
- Tracking: Many times, grown-ups give gift cards to young shoppers as it enables them to monitor and control their spending. This is unlike cash where it is very difficult to restrict the amount of money being spent.
Are there any Pitfalls in the Gift Card Industry?
Although gift cards are an immensely great gifting option for both senders and recipients, the gift card industry faces several pitfalls.
For instance, gift cards are in high demand among the Millennials and GenZ, but they still do not have an easily accessible supply. Additionally, several gift cards have an expiration date that requires customers to use them by a particular date or lose the value of the card altogether. And because of this expiration date, many customers believe that gift cards do not hold the same value as cash or any other currency.
Moreover, gift cards remain considerably more susceptible to fraudulent activities and double-spending. Thus, customers find gift cards scarily easy to hack which abstains them from using these as their most preferred gifting choice.
Can a Transaction through a Gift Card be as simple as a Transaction through UPI?
Gift card transactions are quite simple. When a receiver receives a digital gift card, they can pay for any product using the funds on the card. If they are spending it online, they can select the item and add it to their shopping cart. At the time of checkout, they can input the gift card number in the appropriate field on the payment screen. The company will simply deduct the payment from the digital gift card and ship the item to the recipient.
Earnest Data Analytics Pvt. Ltd. (Meribachat, BenefitWise) is among the leading platforms of gift cards in India, enabling consumers to choose from over 250 brands. It is the best pre-shopping destination where customers can avail of huge upfront discounts on gift cards, enabling them to make additional savings on top of any discounts and deals that the online store offers.