The sale of physical gift cards decreased considerably during the global pandemic-induced lockdown. However, at the same time, the sale of digital gift cards increased by more than 50%. The reason behind the increasing sales of digital gift cards and declining sales of physical gift cards were apparent. With stores closed for months and no physical movement allowed, consumers increasingly shifted online to purchase gift cards.
However, According to PayNXT360’s recent survey, it has been observed that retailers are beginning to experience a significant rise in the sales of physical gift cards. This is primarily due to the impact of the global pandemic starts to diminish and stores opening up for business again. Moreover, consumer sentiment towards visiting retail stores is gradually improving along with an increasing number of fully vaccinated individuals.
According to PayNXT360, gift card buying from physical retail stores started recovering since Q2 2021. According to the same study, more than 51.1% of the gift card buyers purchased a physical gift card from retail stores during this period.
PayNXT360 expects the growth of gift cards to continue its upward momentum across different sales channels. Moreover, the rising sales of both physical and digital gift cards show that consumers have an unparalleled choice in how, where, and when they can purchase gift cards.
Now more than ever before, consumers across different demographics are buying gift cards. Consequently, it is projected that it will be crucial for retailers to meet the evolving needs of consumers to ensure sustainable growth over the next four to eight quarters. For instance, consumers are increasingly looking for environmental-friendly physical gifting options such as recyclable gift cards. Therefore, it has become importnat for retailers to allow shoppers to pick the gifting option that matches their needs.
