The global digital gift card market size was valued at $ 258.34 billion in 2020, and is projected to reach $ 1,101.03 billion by 2030, growing at a CAGR of 15.8% from 2021 to 2030. source Allied Market Research
Digital gift cards are widely adopted as a part of development strategies for promoting businesses, increasing brand awareness, reducing fraud activities, and attracting new customers. As a result, these cards find extensive applications across diverse sectors, including food & beverages, retail, hospitality, consumer electronics, and others.
The use and adoption of them soared during the pandemic owing to limited use of cash payments in the market.
In addition, as consumers have increased the usage of more effective & secured payments for shopping online, the key players have an opportunity to implement better product offerings by providing discounts for digital gift cards, during the pandemic situation.
I don't know about you but I've yet to see someone post a picture on social media shouting about the excitement of receiving a digital gift card vs a considered physical gift. For me the whole ROX (return on experience) for all parties is somewhat diluted and leans to far towards the transaction.
It's obviously an extremely convenient thing to do for consumers, yet for companies involved they also have to manage unclaimed spend on the balance sheet, so depending on your point of view this could be a good thing or a growing cash reserve liability?
I came across the Gift Card sector many years ago whilst working with 'Argos' to help them grow their reach, marketing, and communications for the Gift Card sector. It was a growing sector and in the UK the team at Argos were out in front.
There are now many companies around the world utilising these as a way of connecting and sharing their brand with peer groups, including family and friends, something you could argue is helpful when your struggling for what to buy for Birthdays, Anniversaries, and of course the festive season.
Did you know that there are also companies that provide these types of cards for insurance purposes?
Today instead of the insurance company sending you a cheque, or depositing the funds directly into your bank account they will provide you some form of digital gift card that can only be redeemed at any of the insurance providers network of suppliers.
These can range from electrical goods, through to carpets, curtains and even plumbers.
This is a great innovation and cost saving initiative for them, however is it the kind of experience you 'think' your signing up for when you agree to pay those premiums?
What's your thoughts and experience of using this type of gift card from insurance companies?