Over the past decade, Digital gifting has significantly evolved. This can be heavily attributed to technology which has created awareness and attractiveness about them. The growth in the gift card market is due to the rise in demand for gift cards in various sectors, including the corporate sector.
What is Digital Gifting?
You may be wondering, “what exactly is digital gifting?” What does it entail? and how does it work? Digital gift cards are Electronic gift cards sent by retailers usually to your Email after payment. Electronic gift cards perform the same function as physical cards, they both have Gift codes and can both be used as an alternative means of payment the major difference is Digital gift cards cannot be held unless it’s printed.
Thanks to technology, everybody can get their hands on an E-card from the comfort of their homes and offices. Retailers are all over the internet, all you need to do is search for the particular brand you want and amount on secure websites.
Many brands over the years have incorporated digital gift cards to avoid being left behind. Recently, Card owners now enjoy funding their Digital cards due to the ease it provides when it comes to making payments. Also, some of these E gift cards have high cashback value when considering selling the gift code. Which has created a bit of confidence in the minds of Card owners. The fact that purchasing these cards is not permanent provides a sense of relief. However, you should ensure to watch out for the fakes and trade on trusted platforms. A recent gift card survey stated that consumers tend to go for reloadable gift cards over regular gift cards as they can reuse them.
The request and sales for digital over paper ones skyrocketed in the past decade. Studies have hinged this on environmental issues as regards plastics. It is also projected that physical gift cards may soon be outdated.
Analysis
A gift card survey once said ‘The growth in e-gifting sales, from $300 million in 2012 to an expected $3 billion this year, supports a healthy trajectory of growth for the market as a whole.’
The e-gifting trend has helped propel continued growth in the gift card market. Over $140 billion in sales since 2016. E-gifting has topped $10 billion and filled a niche for customers looking to buy and send their gifts to recipients they do not have to meet in person.
In 2020, the adoption of e-Gift cards increased tremendously during the global pandemic; covid-19.
This trend boosted the continued growth in the gift card market with an excess of $140 billion in sales since 2016. Digital gifting is advantageous and eliminates the process of having to meet the recipient in person before the gift card can be received.
Due to its convenience and flexibility, digital gifting has added a significant impact to the gift card industry. It has also brought about various considerations to limit or reduce the number of physical card productions.
In the United States alone, the gift card industry is expected to record a compound annual growth of 9.2% during 2020-2024. The market is expected to increase from US$ 163,050.7 million in 2019 to US$ 221,146.6 million by 2024. These numbers are estimated on the continued adoption of physical and digital gift cards by millennials, rising e-commerce, and an increase in demand for cryptocurrencies in the USA.
Conclusion
We are now in a time where the world is conforming to Blockchain technology, digital currencies and gifting. People are finding alternative and easier methods of making payments. As a brand to further provide convenience for your customers, you should seriously consider how to incorporate Gift cards into your business if you are not already on board.
