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Digital vs Physical Gift Cards: Why Going Digital is the Smart Move in 2025

Posted on 5 February 2025
Read time 2 mins
Author Katie 🧩

The world of gift cards is evolving, and in 2025, it’s clearer than ever: digital gift cards are no longer just an option—they’re the smart move for brands and consumers alike. 

While physical gift cards still have their place, digital options are stealing the show with their convenience, flexibility, and environmental benefits. Let’s explore why digital gift cards are leading the charge in 2025.

Convenience reigns supreme

Digital gift cards are the ultimate in hassle-free gifting. They can be purchased, personalised, and sent in seconds—perfect for last-minute shoppers or those looking for a seamless experience. Plus, with the rise of mobile wallets and apps, redeeming a digital gift card is easier than ever.

In 2025, brands offering one-click gifting or QR code redemption are setting themselves apart. Customers are expecting speed and simplicity, and digital cards deliver both in spades.

Environmentally conscious gifting

Sustainability is top of mind for consumers in 2025, and digital gift cards are an eco-friendly alternative to their physical counterparts. No plastic, no packaging, and no shipping—just instant, waste-free gifting.

For brands, this shift aligns with a broader push toward sustainable practices. Offering digital gift cards isn’t just good for the planet; it’s good for business, too, as customers increasingly support brands that reflect their values.

Reaching a wider audience

The beauty of digital gift cards is their versatility. They’re perfect for both personal gifting and corporate rewards, with the ability to customise and scale like never before.

In 2025, we’re seeing brands leverage digital gift cards to tap into B2B markets, offering discounts and promotions that make them a valuable tool for employee rewards, customer acquisition, and beyond. The flexibility of digital cards allows businesses to meet the needs of diverse audiences worldwide.

Omni-channel opportunities

Digital gift cards seamlessly bridge the gap between online and in-store shopping. Customers can redeem them wherever and whenever they like, creating a truly omni-channel experience.

In a world where convenience drives loyalty, brands that integrate digital gift cards into their eCommerce platforms and physical stores are staying ahead of the curve. They’re also benefiting from valuable data insights that help them understand customer behaviour and preferences.

The numbers speak for themselves

The digital gift card market continues to grow at a phenomenal pace. In 2024, it was valued at $493.12 billion, and in 2025, it’s expected to hit $583.34 billion—an 18.3% increase in just one year. Projections suggest the market could soar to $1 trillion by the end of the decade.

This growth reflects the rising demand for digital solutions across all industries, from retail and hospitality to travel and entertainment.

Why your brand should go digital

In 2025, digital gift cards are a must-have for any brand looking to stay competitive. They’re convenient, sustainable, and versatile, offering benefits for both businesses and their customers.

At Jigsaw, we specialise in helping brands create and optimise their gift card programs. From designing eye-catching eCommerce websites to building seamless omni-channel systems, we ensure that your gift card offering stands out in a competitive market.

Ready to go digital?

Let’s talk about how we can help your brand take its gift card strategy to the next level.

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