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All You Need To Know About Digital Gift Cards in 2024

By Oluchukwu Ikemefuna

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One of your initial considerations when creating a thorough reward programme should be digital gift cards. Gaining insight into this kind of reward’s potential is essential to boosting client acquisition, loyalty, and retention rates. 

Especially, given that the worldwide gift card industry is expected to reach a value of $1.4 trillion by 2026 and $221 billion by 2024, thanks in large part to their increasing popularity among millennials and Gen Z.

Well, let’s get started and cover all the information you need to ensure that you’re making wise and efficient use of digital gift cards.

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What Are Gift Cards

To put it simply, gift cards are a kind of digital reward—a card or token that can be redeemed for products or services from a certain company for a predetermined amount of cash. It’s a simple and practical method of rewarding someone. 

Additionally, an E-gift card can only be used at specified and listed businesses—while some do permit holders to exchange or sell unused gift cards—as opposed to cash, which can be spent anywhere. One may wonder why someone would someone prefer a gift card reward over cash.

The present or reward is more closely linked to a specific service or item, which is the explanation. Cash, on the other hand, is fungible and may be used for almost everything, including food and energy bills. 

Therefore, a digital gift card forces your friend or relative to use the money for that item if you want them to use it to obtain something particular that they’ll remember. 

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Types of Gift Cards

There are essentially two forms and two kinds of gift cards.

The types are;

1. Own branded gift cards

In this instance, brand X is offering a digital gift card with a predetermined value that may only be used to purchase brand X goods or services. In essence, the brand is receiving a head start on future sales and is aware that a transaction will occur with it, which will help it either keep or get customers.

2. Third party gift cards

Gift cards from third parties, such as Amazon or Spotify, are provided by brand X and have a predetermined value that can only be used for their goods or services. 

The brand offers gift cards from third parties because it finds it challenging to provide compelling incentives based on its own services and thinks that a gift card from a different brand would be more appealing to its target market. 

The fact that there is an upfront financial fee and that the cash value will be used for a different brand is, of course, a drawback.

The two forms are;

1. Physical Gift Cards

Physical gift cards are usually made of paper or plastic. 

These are generally used by older consumers who prefer to hold something real in their hands.

2. Digital Gift Cards (e-Gift Cards)

E-gift cards are the physical gift card’s digital age equivalent. These are digital versions of physical gift cards that function similarly and can be distributed quickly via email or messaging services. 

This eliminates many of the drawbacks and restrictions associated with real cards, such as tracking, distribution, and loss or damage. 

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Advantages of Using Digital Gift Cards

Digital gift cards, or E-gift cards, completely rethink what it means to engage and incentivize people. Let’s look at some benefits associated with using e-gift cards as a key component of your incentive programme.

1. Seamless Delivery

The versatility of electronic gifting systems is what makes them so beautiful. Digital gift card presents can be efficiently and quickly delivered by using many channels, such as email, social media, or mobile phones. 

Recipients can then use their gift cards through their favorite communication channels nearly instantly.

2. Full Automation

 E-Gift cards’ considerable automation features are what really make them valuable. These platforms can be integrated with back-end systems to automate campaigns with rules or triggers. 

For example, a good platform can match qualified receivers to the offer, automatically start the delivery process, and identify eligible recipients when offering sign-up bonuses for new customers — all without manual intervention. 

This reduces labour expenses and saves a significant amount of time, making the promotion and delivery of gift cards nearly straightforward.

3. Advanced Reporting Capabilities

Additionally, an array of data insights can be accessed through an E-gift card platform. Strong reporting features are provided by good platforms, which enable you to fully visualize and evaluate campaign data in real time. 

By gleaning actionable insights from running campaigns, you can enhance performance and future campaign outcomes. A comprehensive picture of financial success is also made possible by integrating your e-Gift Card platform with other essential sales tools, such as marketing, accounting, and enterprise resource planning (ERP) systems.

4. Logistical Effortlessness

Adopting digital rewards, especially eGift cards, avoids the logistical headaches associated with physical gifts by doing away with worries about postage, delivery schedules, or misplaced goods.

5. Versatility Across Business Dimensions

Digital gift cards have the potential to extend beyond conventional business-to-business (B2B) applications. 

Because of their adaptability, they can be used for a wide range of business requirements, including employee loyalty programmes, digital marketing incentives, survey participation, feedback, and review requests.

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Why are Digital Gift Cards so successful?

Among the factors contributing to digital gift cards’ popularity are the following:

1. Flexibility

The inherent flexibility of digital gift cards is one of their main draws. With these gift cards, the receiver can decide how and when to use their gift—for example, by using it for in-person or online shopping, or a combination of the two.

2. Security 

They won’t shatter and are less likely to be lost or stolen than traditional physical gift cards. They are easily recoverable via a smartphone, email, or app, and the issuer may frequently just send you a new code or email if you unintentionally erase the previous one.

3. Instant gratification 

A physical gift card often needs to be purchased in person or sent by mail, but an electronic gift card may be used right away and is delivered to your email in a matter of seconds, making it more convenient than traditional physical cards. 

4. Accessibility 

Another benefit of digital gift cards is its accessibility, which allows customers to readily access their cards from laptops, tablets, and smartphones whenever and wherever they are. To put it simply, the benefits of digital gift cards are their versatility, strong security features, ease of use, and rapid accessibility.

Why You Need a Digital Rewards Platform

An innovative digital rewards platform is required to manage a gift card distribution programme that is both scalable and economical. 

Due to the ability to send e-gift cards automatically based on business criteria and to manage and audit their distribution and redemption, this will prevent human error and the need for ongoing manual interventions. 

A first-rate distribution platform should have the following characteristics:

1. Access an Extensive E-gift Card Catalog

You can choose from a wide range of digital gift cards with an enterprise digital rewards platform, saving you the trouble of haggling with hundreds of different providers. For instance, Buyapowa’s partners have immediate access to more than 1,000 reward options that are tailored to the requirements of various regions, languages, and business sectors. 

Your campaigns will be more successful if you can offer your clients and potential customers a selection of rewards from that catalog, in addition to having access to a large catalog of gift cards. The receiver should be able to select between, for example, an Amazon gift card, a Spotify gift card, or a charitable donation through your distribution network. 

2. A Streamlined Distribution System

In order to guarantee a smooth and effective distribution of digital gift cards, automation is required for all operational operations to assure precision, expandability, and flexibility. 

This should include figuring out what the qualifying requirements, payout amounts, and gift card possibilities are, as well as enabling distribution in case manual intervention is required. 

By doing this, you can lower operating costs, free up company resources, and drastically cut down on errors. 

3. Higher-Level Analytics

You’ll find it difficult to enhance your programme if you don’t have access to data and analytics that allow you to make data-driven decisions based on useful insights. 

Access to thorough, adaptable reports that you can customize to your needs should be made available by your programme, and ideally, you will have professional assistance available to assist with their interpretation.

4. Scalability 

Your rewards programme should grow with your business. Scalability-built digital rewards platforms guarantee that your programme may expand with your company without interruption. 

This guarantees that the platform can manage growing demands without sacrificing functionality or driving up operating expenses, regardless of whether you’re serving a small number of users or a large worldwide audience. 

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How to Start Working with a Digital Rewards Platform

To start working with a digital rewards platform and leverage the benefits of digital gift cards or e-gift cards, follow these steps:

  • First, sign up or create an account on the platform. Provide the necessary details and ensure the platform is reputable and secure. 
  • Once registered, navigate to the gift card section or marketplace. 
  • Choose from a variety of digital gift cards available for different retailers or services. 
  • Customize your selection based on your preferences or the preferences of the recipients.
  • Next, add the selected digital gift cards to your cart and proceed to checkout. 
  • Some platforms may offer options for personalization, such as adding custom messages or images. 
  • Make the required payment, usually through secure online transactions. 
  • After a successful payment, you’ll receive the digital gift cards via email or within your account on the platform. 
  • Download or share them with the intended recipients.

Now, recipients can easily redeem their e-gift cards online or in-store, depending on the retailer’s policies. 

Digital rewards platforms offer convenient, flexible, and customized engagement with the growing trend of digital gift cards.


What is a digital gift card?

 A gift card, or e-gift card, is an electronic alternative to traditional gift cards. It exists in digital form and is often sent and received through email or online platforms.

How do I purchase a digital gift card?

Purchase a gift card by visiting a rewards platform or retailer’s website, selecting, customizing (if needed), adding to cart, and checking out. Complete the payment online, and you’ll receive the digital gift card via email.

Can I customize a digital gift card?

Many platforms allow customization. In the purchase process, add personalized messages, images, or videos to enhance the meaning of digital gift cards.

What types of retailers offer digital gift cards?

Gift cards are available for a wide range of retailers, including online stores, restaurants, entertainment services, and more. Popular options include Amazon, iTunes, Starbucks, and major clothing brands.

Are digital gift cards secure?

Yes, gift cards often come with security features like unique codes or PINs to prevent unauthorized access. Purchasing from reputable platforms ensures the security of your digital gift card.

How do I redeem a digital gift card?

To redeem a gift card, recipients typically follow instructions provided in the email or on the platform. This may involve entering a code during online checkout or presenting the digital card at a physical store.

Do digital gift cards expire?

The expiration of gift cards varies and depends on the retailer or platform. It’s crucial to check the terms and conditions associated with each digital gift card to ensure timely redemption.


In conclusion, the widespread adoption of gift cards, or e-gift cards, reflects a transformative shift in modern gifting practices. With their convenience, customization options, and accessibility, these digital alternatives have become integral in various occasions. 

Effortlessly purchase, personalize, and send digital gift cards; recipients enjoy flexibility in redeeming for various goods and services.

 Gift cards’ growing popularity reflects their significance in meeting modern preferences, providing a seamless, innovative approach to gift-giving traditions.

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Oluwatobi Olowe
Oluwatobi Olowe

Tobi Olowe has over 3 years of experience as a content writer specializing in Tech discoveries, site optimization, building content that rank well and boosting overall site performance.

Articles: 151

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