The use of e-cards offers other benefits for retailers like higher loyalty and engagement with their customers. The gift card segment will experience further digital acceleration in 2025 as and will become more customized, including folding the cards into loyalty systems, enhancing eco-friendly initiatives, and other forms of gift cards.

Convenience

With the increase in digital adoption, customers expect gift cards to work seamlessly across channels. They want the flexibility to use them wherever they shop without needing an envelope or waiting for someone else to deliver it; providing such an easy experience helps brands maximize revenue and foster customer loyalty.

Gift cards can help businesses both reward repeat business and attract new customers. For instance, beauty brands might use digital gift cards as part of a referral program that rewards existing customers who refer others. Furthermore, companies could use gift cards instead of traditional trophies for celebrating employee milestones such as project completion, anniversary milestones or any other forms of success within their workforce.

An effective e-gift card solution should integrate seamlessly with all channels to provide customers with convenience and consistency. 99minds’s omnichannel solutions allow customers to purchase and redeem digital gift cards across multiple sales platforms (point-of-sale as well as online) leading to increased conversion rates and custom branding options that ensure digital gift cards represent your brand ethos and target audience effectively.

Personalized Experiences

According to a study by McKinsey, tailored experiences are now regarded as a pivotal feature with gaps for improvement opportunities in today’s advanced digital economy. Consumers nowadays expect to be treated on a personal basis with brands as they transact with them and are ready to sever ties with brands that do not offer this. By providing personalized communications and relevant recommendations, organizations are able to meet customers’ expectations more effectively which in turn promotes advocacy, customer satisfaction, and loyalty.

With the help of advanced Artificial Intelligence and Machine Learning, unfathomable amounts of data can be collected and analyzed, allowing for experience customization to the individual level for enhanced customer interactions. That said, special care must be taken to ensure no violation of privacy policies occurs when collecting such data – a user-specific approach will guarantee greater conversion rates, revenue, and retention.

E-gift cards can be an excellent way to provide personalized digital experiences. Sephora uses them as a way of offering their customers gift vouchers they can redeem online or in store for makeup and skincare products, providing more relevant experiences while maintaining its reputation as an innovative brand.

Eco-Friendly Options

Gift cards are an eco-friendly alternative to physical presents, offering instant redemption through online or messaging apps without extra packaging waste or shipping costs. Furthermore, gift cards make it easier to track them reducing waste through possible misuse or loss.

From raising participation rates in marketing campaigns to enhancing survey completion rates, e-cards can serve multiple purposes when it comes to employee motivation. They also serve great value for corporate gift giving such as, but not limited to, greeting cards that can be turned into plants, drinkware, or cooking classes and weekend trips.

Separating cards into physical and virtual categories may seem to place e-cards to be more environmentally friendly but it is prudent to consider the fuel consumption used to power servers along with the computers that are used to view said messages. Using solutions such as Pluxee’s virtual card can significantly aid in reducing one’s carbon footprint.

Flexibility

E-cards or gift cards offer recipients many advantages. Streaming service gift cards allow recipients to select their preferred movies, shows or music while gaming gift cards allow gamers to purchase content and subscriptions in-game. Brands looking to capitalize on this trend might consider providing tailored cards based on customer purchase history.

Digital gift cards can also be automatically reloaded or used to redeem loyalty points, increasing their utility and value for customers. Brands can use digital gift cards within their apps to build customer loyalty and engagement; for instance beauty brands might use them as loyalty rewards with premium e-cards or incorporate them as part of referral programs.

E-cards and gift cards hold great promise in the future, with brands taking advantage of technology and strategic partnerships to deliver more customized experiences to their customers. By making this shift now, businesses can remain relevant with consumers while taking advantage of an emerging market – don’t hesitate – start selling digital gift cards now!

Secondary Market

As the COVID-19 pandemic reduced physical gift card sales, retailers turned their focus toward digital versions as an opportunity to provide tailored experiences and draw in new customers while cutting operating costs and growing revenues. Now is the time for this industry to thrive.

This trend results from the widespread adoption of digital gift cards across various industries and sectors. Take, for instance, the consumer goods industries. They are now using these services to customize gifting options for their clients, thereby enhancing brand loyalty. In addition, social media has been instrumental in expanding the digital gift card market.

We explore the strategic motivations for firms’ use of gift cards and find that they don’t always meet consumer objectives (such as avoiding social stigma associated with cash gifts, or business buyers whose organizations prohibit handling it). Instead, we identify an unanticipated rationale for gift cards, increasing sellers’ pricing power by raising product prices for cardholding customers while rejecting rival cards raises profit margins resulting in the practice known as escheatment which neither your local pizzeria nor Target want to deal with.