Gift certificates have come a long way since their introduction in the 1990s. What started as simple paper vouchers redeemable at a single retailer have evolved into sophisticated digitized cards and e-codes that can be used almost anywhere. Early gift certificates only came in fixed denominations like $25 and were mostly single-use. Now, gift certificates are available in any amount and often come with bonuses and additional perks for the recipient. Major gift certificates platforms allow purchases from hundreds of merchants using a single card, giving recipients flexibility to spend however they choose. This level of versatility and choice has contributed hugely to the growing popularity of gift certificates.
Changing Consumer Preferences
Shifting consumer trends have also driven the Gift Card phenomenon. People are increasingly time-starved and prefer quick, low-effort gift solutions. Figuring out the perfect gift used to require hours of browsing stores and online shops. Now, gift certificates take seconds to purchase online and are mailed or emailed immediately. Recipients appreciate the convenient, no-hassle experience too. Younger generations of Millennials and Gen Z in particular favor experiential gifts over material items. Gift certificates empower recipients to choose their own experiences like meals, entertainment, travels and more. This ongoing cultural shift matches well with the intangible, versatile nature of gift certificates.
Convenience and Thoughtfulness
Gift cards strike the perfect balance of convenience and thoughtfulness. As described, they are incredibly easy to purchase online anytime. But the recipient feels their tastes and preferences were considered since a gift certificates gives them complete choice. It’s also thoughtful because it takes the guesswork out of what someone might like. No one wants another unworn item collecting dust. With a gift certificates, the recipient can select an item or experience they’ll truly enjoy and use. Versatile gift certificates also work for anyone of any age, interest or budget level. The options are virtually endless. All of these qualities together make gift certificates a fail-safe, thoughtful gift idea.
Rising Spend and Adoption
This increased spending is evidence of widening adoption – more consumers are selecting gift certificates each holiday season and special occasions. According to surveys, over 50% of recipients are satisfied with a gift certificates compared to a physical gift. The intangible, reusable nature resonates more nowadays than a material item. With growing consumer confidence in digital payment platforms, e- gift certificates have boomed as well, making up over 50% of total gift certificates volume. All signs point to continued rise in both gift certificates usage and preference in the coming years.
Impact of Covid-19
The global pandemic accelerated existing trends and further cemented the popularity of Gift Card. When lockdowns limited in-person shopping in 2020, gift certificates saw unprecedented growth. They provided a low-risk, contactless gifting option when other solutions weren’t feasible. E- gift certificates volume in particular skyrocketed. An estimated 30-40% increase in gift certificates sales occurred that year as consumers shopped and gave remotely more than ever before. Even as retailers reopened, many people continued showing gift certificates preference for hygiene reasons. Touchless gifting gave peace of mind. Long-term, Covid sealed gift certificates as a convenient staple for both celebratory occasions and casual giving. Their flexibility makes them equally suitable for any budget or situation too.
Drawbacks and Pitfalls
While gift cards offer numerous benefits, there are some potential disadvantages recipients should be aware of. Chief among them is the risk of loss, damage or theft of physical gift certificates. Make sure to sign the back of new cards and store safely. For e- gift certificates, keeping digital codes secure is critical since there is no recourse if codes are stolen. Another drawback is that gift certificates usually can’t be exchanged for cash, though some cards may charge small fees if only a small amount is left. Additionally, gift certificates from outlets that later go out of business become worthless. Be sure to use up balances promptly to avoid such eventualities. Gift certificates aren’t a universally appreciated gift either – some may prefer a tangible item instead. So it’s smart to consider the recipient’s preferences when choosing a card. Proper research helps minimize any potential drawbacks.
Continued Rise as Popular Option
Gift cards have rapidly evolved into the preferred gifting option for many people and occasions. Their undeniable convenience paired with thoughtful personalization resonates strongly with contemporary lifestyles and preferences. Steady growth in both spends and adoption prove that gift certificates are anything but a passing fad. Rather, they are firmly entrenched as a gifting staple for holidays, special events, employees and casual giving scenarios. As digital payment platforms advance, innovations in gift certificates will continue enhancing user experiences for both givers and receivers. Barring unforeseen disruptions, all indicators point to gift certificates as retaining their popularity well into the future. Their adaptability has fostered widespread appeal and made them a go-to gifting solution for diverse needs and budgets.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.