Gift cards: shifting consumer behaviors and new strategic opportunities

Gift cards are no longer just store credit. They’ve evolved into a strategic asset—shaping consumer behavior and embedding themselves in retail marketing strategies. In 2024, their usage is undergoing a major transformation, driven by digital adoption, the rise of “self-use,” and the growing impact of the B2B market.

Today’s consumers aren’t just giving gift cards—they’re using them for themselves, maximizing their purchasing power and expecting a seamless, personalized experience. These new behaviors are forcing brands to rethink how they offer and integrate gift cards within their ecosystem. Let’s explore these shifts and their implications for modern retail.

The rise of digital gift cards

Digital gift cards are now the preferred format for consumers. In 2023, adoption grew by 15%—2.5 times faster than for physical cards. In the UAE, 93% of gift cards are digital, compared to 52% in the UK and 40% in the US. This trend is further supported by mobile wallet adoption, with 30% of gift cards in France stored in digital wallets.

Why are digital gift cards thriving?

• Convenience: Available 24/7, sent instantly, and easy to store on mobile devices.
• Sustainability: Digital cards reduce plastic waste.
• Omnichannel compatibility: 53% of consumers want to use their gift card both online and in-store.

But the shift to digital goes beyond convenience—it unlocks hyper-personalized experiences. Today, many programs allow users to add personal messages, custom visuals, photos, or even videos. This personalization enhances emotional value and boosts recipient loyalty.

Brand impact: Offering both digital and physical formats is now essential. The purchase and redemption journey must be smooth and intuitive, with flexible personalization and delivery options. But beware of overcomplicating the experience—simplicity and speed are key.

The rise of “self-use”: gift cards as a personal payment method

Once primarily seen as a gift, the gift card is now being used by consumers for their own purchases. In the US, 59% of gift card buyers purchase them for personal use. In the UK, that figure is 47%. Across Europe, 74% of buyers now use gift cards to optimize their budget.

Why? In the US, they help with budget control—setting a fixed spend at a specific retailer. In Europe, “self-use” is driven by corporate benefits platforms and loyalty programs offering discounted gift cards (e.g., €50 card for €40). This appeals to price-sensitive shoppers seeking to stretch their purchasing power.

Gift cards are now a mainstream payment method—alongside credit cards and digital wallets. They simplify transactions, especially on marketplaces and in retailers offering gift card-exclusive deals.

Brand impact: Make sure self-purchase is an obvious, frictionless option online and in-store. Test marketing campaigns positioning gift cards as acquisition and retention tools to increase average basket size and build loyalty.

Multi-retailer gift cards gain momentum

Multi-brand gift cards are increasingly popular. In 2024, 38.8% of buyers prefer them—up from 34.5% in 2023. In Germany, the UK, and Scandinavia, the trend is even stronger, reflecting a growing desire for flexibility in spending.

Why consumers love them:

• Avoid unused cards
• Offer greater choice
• Work for both individuals and B2B reward programs

Brand impact: Retailers should strive to be included in multi-brand cards to increase visibility while continuing to promote their own branded cards as acquisition and loyalty drivers. These are complementary strategies, not competing ones.

Experiential & themed gift cards are booming

Gift cards are no longer just about buying products—they’re a gateway to experiences. Consumers are increasingly choosing cards for travel, spas, restaurants, and leisure activities—a segment that grew 17.7%. Millennials and Gen Z are fueling this shift, favoring memorable experiences over material goods.

This shift encourages brands to rethink their offerings—pairing gift cards with subscriptions (Netflix, Spotify) or immersive experiences. The act of giving becomes personal, emotional, and aligned with the values of younger generations.

Brand impact: Explore co-marketing campaigns with complementary brands.
Example: TheFork and Lastminute bundled their gift cards at a discounted price.
Or Blissim and Kiabi, who launched joint sweepstakes to cross-grow their communities using gift cards.

B2B: the growth engine behind gift cards

Today, two-thirds of gift card sales come from B2B, versus one-third from B2C. In France, CSE (works councils) account for 60% of B2B gift card sales. In Germany and the US, they are key tools for employee rewards and engagement programs.

Businesses value gift cards for their flexibility and motivational power. Unlike cash bonuses, they avoid tax complications and integrate easily with loyalty and incentive platforms through APIs, enabling fast and automated distribution.

Brand impact: Tapping into the B2B market lets retailers reach new audiences—employees and members—via partner platforms (loyalty, employee benefits, etc.). By making access to their cards seamless, brands gain visibility and market share in a rapidly growing segment.

Fraud & security: managing growing risks

The growth of digital gift cards comes with increased fraud risk—impacting around 12% of digital transactions. To fight back, brands are adopting tools like biometrics, blockchain, and IP tracking. In the US, regulations now require anti-fraud alerts at the point of sale to protect consumers.

Brand impact: It’s vital to educate customers, add trust signals throughout the gift card journey (purchase and redemption), and proactively address potential concerns.

Branded currency: integrating gift cards into the brand ecosystem

Gift cards are increasingly used as branded currency. Retail giants like Decathlon now let customers convert loyalty points into gift cards, promoting circular spending within the brand. Zalando, meanwhile, uses gift cards as a core element of its acquisition and retention strategy.

This shift reflects a move toward creating a virtuous engagement loop: the customer buys a card, discovers the brand, and returns for more. With AI and social listening, brands will soon be able to adapt gift card offers in real time to match customer behavior.

Brand impact: Make gift cards a core part of your acquisition, retention, and loyalty strategies to unlock their full potential.

Understanding recipient behavior: a powerful lever

The gift card experience goes well beyond redemption. 78% of gift card holders spend more than the card’s value. This “boost effect” is even stronger in categories like fashion, beauty, and electronics, where recipients are more likely to trade up.

Gift cards create a bridge between the act of giving and the shopping experience, strengthening emotional ties with the brand. Each redemption—online or in-store—is an opportunity to convert recipients into loyal customers.

Brand impact: The goal is to capitalize on the first visit.
If the recipient is a new customer, wow them. If they’re already loyal, deepen the relationship.

As consumer behavior evolves, gift cards are no longer just about gifting—they’ve become a strategic asset for brands. From driving engagement and increasing average order value, to acquiring and retaining customers, gift cards are now an integral part of the retail playbook.

Brands that embrace this transformation will stand out—offering a modern, fluid, and personalized experience that matches today’s expectations and tomorrow’s opportunities.

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