The Rise of Digital Gift Cards: Why Brands Should Be Paying Attention

As consumer expectations shift toward instant, digital-first experiences, gift cards have become an everyday payment choice rather than an occasional purchase. At the same time, brands are discovering that digital gift cards can do much more than generate revenue—they can attract new customers, increase average order values, and strengthen long-term engagement.

To better understand these trends, we combined leading industry research with exclusive insights from the Fluz marketplace to explore how digital gift card adoption is changing—and what it means for brands.

Digital Gift Cards Are Driving Customer Acquisition

One of the biggest misconceptions about gift cards is that they're simply another payment method. In reality, they're one of the most effective customer acquisition tools available.

Recent industry research found that 61% of Gen Z consumers say they'd try a new merchant because they received a gift card, with Millennials close behind. Younger consumers are increasingly willing to discover new brands through digital gift cards, making them a valuable channel for customer acquisition and long-term loyalty.

Customers Spend More Than the Card Value

Digital gift cards don't just generate purchases—they often increase them.

According to industry research, 64% of consumers spend more than the value of their gift card, helping brands increase average order value while encouraging additional purchases during checkout.

Rather than replacing an existing sale, digital gift cards frequently lead to larger baskets and incremental revenue.

Digital Expectations Continue to Rise

Today's consumers expect convenience.

More than half of consumers prefer receiving digital gift cards electronically, and shoppers increasingly expect instant delivery, mobile redemption, and seamless checkout experiences.

At the same time, businesses are embracing digital gift cards as a modern solution for employee recognition, customer incentives, and loyalty programs, with 81% of consumers saying they'd like to receive a gift card from their employer.

What We're Seeing at Fluz

The trends reflected in industry research are mirrored across the Fluz marketplace.

Between 2024 and 2025, digital gift card sales experienced strong year-over-year growth across several major spending categories:

• Home & Home Decor: +122%
• Travel: +113%
• Grocery: +111%
• Big Box Retail: +93%
• Dining: +39%

These trends reinforce that digital gift cards are no longer reserved for holidays—they've become part of everyday consumer spending across essential and high-value categories.

Why It Matters

Digital gift cards have become more than a gifting product—they're a measurable growth strategy.

They help brands:

• Acquire new customers
• Increase average order value
• Drive repeat purchases
• Support loyalty and incentive programs
• Generate measurable marketing ROI

With more than 1,000 digital gift card brands available on Fluz, $100M+ in rewards earned by users, and an average 8–10× ROI from funded merchant campaigns, brands have an opportunity to turn digital gift cards into a scalable growth channel.