Gift cards have become a part of our everyday life, providing a convenient means of giving and receiving gifts. Gift cards have changed their format over time, shifting from plain paper cards to advanced digital cards. Not only has this changed made them easier to use but also more appealing in the minds of consumers and business entities alike.
The Early Days: Paper Gift Cards
Historically, presenting a gift card involved giving a tangible, paper gift card that could be used in-store or online. These early gift cards were primarily used in stores and were a favorite for holidays and special events. They offered an easy way to give the person the appropriate gift card without having to wonder what they would like. Although they were an easy option, paper gift cards had a few drawbacks, such as not being able to easily track balances and the possibility of losing the card.
The Emergence of Digital Gift Cards
With the introduction of digital technology, the gift card industry experienced a significant change. Gift cards have become the preferred option for most consumers, enabling individuals to send gifts through email or mobile applications in an instant. Gift cards can now be used online, and some even provide the feature of loading multiple cards on a single mobile wallet. The use of gift cards has increased substantially as more individuals use digital platforms for shopping and gifting. Whether it is for birthdays, holidays, or promotions, e-gift cards have made the whole process very easy and provided much more convenience in gifting.
The ideal gift card of today can be as customizable as the giver wishes it to be. From digital gaming credits to store-specific cards, there's a digital gift card available for almost any type of gift, so the recipient receives exactly what they need. On top of that, companies have also incorporated digital cards to meet the rise in online purchases, further boosting the appeal of gift cards.
Evolution of the Gift Card Sector
The gift card sector has been growing significantly over recent years, with notable contributions from technological advancements and shifts in consumer attitudes. The gift card industry is estimated to grow at an 18.0% compound annual growth rate (CAGR) through the forecast period, as coherent market insights reports. The overall industry value is likely to be US$ 3,705.24 billion by the year 2032. The growth figure here reflects the significant role gift cards have assumed as a component of the international retail environment.
The integration of digital wallets and compatibility with mobile payment platforms has brought gift cards to everyone's doorstep, again enhancing their popularity. People do not have to stay confined within traditional brick-and-mortar establishments anymore, and gift cards are a cinch to redeem or forward through a mobile phone. Hence, gift card use now spills over beyond the retail industry to other segments like entertainment, restaurant services, and even prepaid debit cards.
Why Gift Cards Will Stay
Gift cards will stick around because they present a plain yet efficient remedy for gift exchange. Because they are simple to use and universally accepted throughout most industries, they have remained the go-to gift option. Physical or online, the impact of gift cards to both customers and businesses can't be discounted. They bring companies a stable source of income and are also a marketing tool, while for customers, they provide convenience and the ability to select precisely what they want.
Since the market keeps going and changing, it's inevitable that gift cards will continue being an integral element of the store experience. Because of the availability to select a right gift card for any and all occasions, they have emerged as one of the most loved and long-lived gift choices out there.
Source:
Nairametrics
Gistmania
Moneycontrol
