September 7, 2023
The Digital Gift Card Revolution: Unveiling the Future of Gifting
In the ever-evolving realm of modern commerce, the concept of gift-giving has undergone a digital transformation.
Enter the digital gift card, a powerful way to bestow the joy of choice upon your loved ones while embracing the convenience of the digital age.
In this blog post, we’re delving into the world of digital gift cards, exploring their significance, market trends, and how they’re driving a paradigm shift in the way we express our sentiments.
What is a Digital Gift Card?
Digital gift cards, as the name suggests, are the contemporary successors to traditional gift cards. Unlike their physical counterparts, they don’t reside within the confines of plastic. Instead, they manifest as unique gift codes, granting the recipient access to a realm of online retailers for their purchases.
The Rising Tide of Digital Transformation
The digital transformation wave has swiftly embraced the realm of gift cards. Research indicates that a remarkable 60% of all purchased gift cards now exist in the digital domain. This trend was further catalyzed by the pandemic, where the average load of physical gift cards saw a dip of 7% in 2020. However, the gift card landscape as a whole thrived. Open-loop cards witnessed a substantial 31.5% sales surge, with customers purchasing an average of 7.1 cards each quarter. Similarly, closed-loop sales jumped by 20.5%, a testament to their growing popularity.
Gift Card Preferences: A Snapshot
Intriguingly, 76% of consumers have indulged in gift card purchases within the past year. Among these purchases, digital gift cards accounted for a significant 40%. It’s evident that a staggering 92% of consumers harbor preferences when it comes to gift cards. These preferences are reflected in their choices, with 71% opting for gift cards from large retailers, 53% from grocery stores, and 38% from restaurants.
Digital Gift Cards: The Preferred Convenience
The year 2022 brought forth a revelation: nearly 50% of U.S. consumers planned to buy gift cards primarily due to their unparalleled convenience. This attribute places them at the zenith of reasons compelling American shoppers to choose gift cards as their go-to gifting solution.
Demographics and Gift Card Usage
Delving into the demographic landscape, younger Americans are emerging as the frontrunners in gift card usage due to economic considerations: Gen Zers at 50%, followed closely by Millennials at 49%, and Gen Xers at 35%.
The Global Picture of the Card Market
The global card market is soaring to new heights, with its value projected to increase from USD 489.4 billion in 2021 to a staggering USD 521.8 billion by 2030, marking a remarkable growth rate of 7.78%.
Beyond Digital: The B2B Virtual Card Realm
Transitioning beyond the realm of personal gifting, the B2B virtual card market presents a captivating narrative. Valued at USD 278.2 billion in 2021, this market is poised to reach USD 1,291.05 billion by 2030, exhibiting a remarkable CAGR of 21.15% during the forecast period.
The Convenience and Security of Digital Gift Cards
The allure of digital gift cards lies in their convenience and security. These cards cannot be lost or stolen. Upon purchase, customers receive a code via email or text, safeguarding their value until they’re ready to shop.
A Global Reach: The Universal Appeal
When it comes to global usability, certain gift cards reign supreme. Visa, Mastercard, American Express, and Amazon gift cards have garnered global recognition and acceptance, making them an excellent choice for international reward programs.
The Delivery Mechanism: Instant Gratification
The delivery of digital gift cards is a testament to modern swiftness. An eGift card can be promptly dispatched and received via email, app, or text, also ensuring instant gratification for both the sender and recipient.
A Peek Behind the Scenes: The Business of Gift Cards
Behind the scenes, companies often partner with gift card distributors to bring these offerings to life. While producing gift cards internally is possible, collaborations with distributors are more common. These partners facilitate the process, ensuring that the cards themselves, which cost mere cents, are seamlessly integrated into the market.
Joining the Digital Gift Card Movement
Becoming a gift card reseller is now more accessible than ever with zendit. The steps are straightforward:
- Contact zendit gift card provider and create a free account in a few seconds.
- Establish your gift card point of sale and market it to customers;
- Monitor your gift card sales to track their performance and impact.
Embrace the digital gift card revolution and witness how zendit can amplify your gifting experience. Step into the world of seamless transactions, enhanced convenience, and the joy of choice.
Reach out to us today and become a part of the digital transformation sweeping across the gifting landscape.