Physical vs Digital Gift Cards: Key Differences

Vom höhlenbewohnenden Mann, der einer Frau ein kleines, glänzendes Stück einzigartigen Gesteins schenkte, bis hin zum hochmodernen Modus Operandi der digitalen Geschenke hat die Tradition des Schenkens - der schönste Ausdruck von Dankbarkeit, Liebe und Respekt gegenüber anderen Menschen - einen langen Weg hinter sich.

And like a rule of concomitance, corporate gifting hasn't been left untouched by it. In fact, one needs to acquire special blindness to ignore the growing sway that digital gifts have on the current world, both personal and professional.
In this blog, we will thoroughly explore the differences between physical and digital gift cards and how digital gift cards outperforms physical ones.

What is a physical gift card?

Physical gift cards are tangible, preloaded cards—usually made of plastic or thick paper—that carry a specific monetary value and can be used as a form of payment at designated retail stores, restaurants, or online platforms.

They often feature a barcode, magnetic strip, or unique code for redemption and are commonly used for personal or corporate gifting, offering recipients the flexibility to choose what they want to buy.

Currently, virtual gifts are around 10% of the overall gift card market but are growing at an incredible 200% rate, year by year.

➼ The global gift card market is projected to grow from $1.09 trillion in 2023 to $1.29 trillion in 2024v, reflecting a compound annual growth rate (CAGR) of 18.4%. This surge is attributed to the rise in e-commerce, increased disposable income, and greater adoption of mobile payments.

➼ A significant trend in 2024 is the rapid rise of digital and e-gift cards. As digital payments and e-commerce grow, more consumers are opting for the convenience of virtual gift cards, which can be delivered instantly and are easier to use via mobile apps and online platforms.

➼ The global digital gift card market size reached USD 453.4 billion in 2024 and is expected to grow at a CAGR of 13.32% to reach USD 1,531.5 billion by 2033. This growth is driven by the expanding e-commerce sector and the increasing adoption of digital gift cards for their convenience and flexibility.

What is a digital gift card?

A digital gift card, also known as an electronic, virtual, or mobile gift card, is a virtual gift option that enables one to redeem the gift of choice on electronic platforms. It can be in the form of codes or reward-based links and sent to the recipient via phone or email.

Eine digitale Geschenkkarte funktioniert genau wie eine normale Geschenkkarte. Je nach Anbieter der Karte können Sie diesen Code online und im Geschäft verwenden. Beachten Sie, dass sie eine gültige Alternative zu Bargeld ist.

Abgesehen von der Einfachheit des Versendens und Empfangens bringen digitale Geschenkkarten sowohl dem Absender (Unternehmen) als auch dem Empfänger (Mitarbeiter, Kunden, Partner) einen bedeutenden Wert. Die folgenden Wertmerkmale sind nur die Spitze des Eisbergs.

Physical vs. digital gift cards: The difference

When you compare this mind-boggling acceptance and growth of digital presents to physical gift cards — a steady 6%, even the slightest doubt about the former's supreme rein will vanish as quickly as vapor. What is making digital gift cards so popular among corporates and non-corporates alike?

Here is a short comparison:

Merkmal	Physische Geschenkkarten	Digitale Geschenkkarten
Delivery Time	Physical gift cards can take days or even weeks to reach the recipient due to printing, packaging, and courier delays.	Delivered instantly or scheduled for a specific time, offering speed and flexibility.
Time Consumption	High—managing inventory, packaging, dispatch, and tracking takes significant effort and coordination.	Low—digital gifts can be sent within minutes, even to large groups, using automation.
Redemption Method	The recipient needs to visit a store or enter the card manually, which can be cumbersome.	Recipients can redeem instantly online or in-store using the code, link or points.
Gift Choice Limitations	Often restricted to a particular brand or store, which may not suit every recipient.	Offers access to a wide catalog—recipients can choose gifts that suit theirii5 preferences.
Customization Options	Limited personalization—usually just the printed message or card design.	Extensive options—custom messages, themes, values, and branding for events or occasions.
Risk of Loss/Damage	Cards can be lost, stolen, or damaged before use, leading to customer dissatisfaction.	Minimal risk—digital gifts are stored in email, SMS, or apps and can be reissued.
Environmental Impact	Involves plastic, paper, and carbon emissions from logistics—less eco-friendly.	Eco-conscious—eliminates the need for printing, packaging, and delivery vehicles.
Skalierbarkeit	Hard to scale—bulk ordering, warehousing, and shipping logistics make mass gifting slow.	Highly scalable—perfect for large teams, global customers, or survey incentives.
Cost of Distribution	Includes printing, packaging, shipping, and handling—adds up quickly.	Very low—most platforms only charge for the value of the gift and optional platform fees.
Integration with Digital Tools	Limited or no ability to plug into HR, CRM, or loyalty platforms.	Seamlessly integrates with CRMs, HRMS, rewards, and loyalty systems via APIs.
Tracking & Reporting	Manual tracking is required, which increases errors and slows down reconciliation.	Digital tools provide real-time tracking, redemption reports, and performance insights.
Ideal Use Case	Great for in-person events, luxury presentations, or traditional corporate gifting.	Ideal for remote workforces, real-time recognition, and global incentive programs.

Why are digital gifts better than physical gifts?

Here are ten reasons that justify why digital gifts are better than physical gifts:

1. Enormer Spielraum für Personalisierung

The perceived value of the gift generates deeply from the personal connection that it evokes, and countless studies staunchly support it.

Consumer demand for personalization: Deloitte's 2024 Consumer Loyalty Survey indicates that consumers increasingly seek personalized, flexible, and digital-centric loyalty programs.
Personalization enhances customer loyalty: A report by Forrester reveals that consumers value personalized experiences that are relevant and valuable, suggesting that personalization efforts can significantly impact customer loyalty.
Personalization as a competitive advantage: Gartner's insights suggest that companies leveraging consumer trends to create personalized and engaging customer experiences see higher customer satisfaction and loyalty.

Mit der Freiheit, die Stückelung festzulegen und sich nicht an einen vorgegebenen Betrag halten zu müssen, alle Elemente der Geschenkkarte zu verändern, vom Gesicht bis hin zu einer feierlichen Fliege zum "Auspacken" der Karte, können die Absender mit virtuellen Geschenken den denkbar höchsten Grad an Personalisierung erreichen.

2. Sofortige Befriedigung macht geografische Barrieren unbedeutend

Digitale Geschenkkarten werden per SMS, E-Mail oder über spezielle Geschenk-Apps an den Empfänger gesendet. Dies garantiert eine sofortige Zustellung - und macht digitale Geschenkkarten zur besten Wahl, wenn Ihre Mitarbeiter oder Kunden in einem anderen Land oder Kontinent leben.

Sie ersparen sich damit nicht nur die Verzögerungen, die durch grenzüberschreitende Probleme entstehen können. Sie ersparen Ihren Mitarbeitern und Kunden auch den Gang zum Laden und das Anstehen in langen Schlangen, um das Geschenk einzulösen.

Alles, was sie brauchen, sind ein paar Klicks, und das Geschenk ihrer Wahl ist auf dem Weg. Außerdem bieten digitale Geschenkplattformen wie Plum mehrsprachige Dienste an, die es Ihnen ermöglichen, ein persönliches Geschenk und eine persönliche Botschaft zu verfassen, ohne Angst haben zu müssen, dass es falsch übersetzt wird.

3. Geringe Kosten, hohe Wirkungsaussichten

Stellen Sie sich vor, Sie versenden tausend physische Geschenke an Tausende von Mitarbeitern/Kunden an verschiedenen Standorten?

Starting from acquiring gifts that suit each persona to putting it in inventory; and from ensuring the right last-mile delivery through third-party delivery partners to handling the return of gifts in case the address is wrong or non-updated, the cost is written everywhere.

The size of recipients, on the contrary, is an ineffectual aspect for the sender of digital presents. The sender just needs to send codes or links to the recipients, costing zilch to the company. Similarly, it’s much cheaper than replacing the wrong email id in the system than to face the extra ride due to the wrong physical address.

4. Idee für Last-Minute-Geschenke

Auch wenn Ihr Firmengeschenkprogramm mit den Namen der Empfänger und den üblichen Verdächtigen noch so gut geplant ist, kann ein Bedarf an Last-Minute-Geschenken aus heiterem Himmel auftauchen.

Ihr Vertriebsteam hat vielleicht eine ansehnliche Summe aus einem nicht ganz so glanzvollen warmen Lead herausgeholt, oder das Unternehmen Ihres geschätzten Kunden stand bei der Verleihung eines glorreichen Wirtschaftspreises auf dem Podium.

These achievements are, by all stretches of the imagination, worthy of a gift from you. But the caveat is that you hadn’t roped in this possibility in your gifting planning, putting you on the verge of missing out on a really deserving gifting opportunity.

Digital gift cards are the actual savior, in the rightest possible meaning of the word, in this crisis-like situation. Where traditional gift cards get delivered within 6 to 8 days, digital gift cards land in the digital premises of receivers within 24 hours.

Also, through automation, they steer you out of the disaster of missing out on key gift-worthy events.

5. Keine Möglichkeit, sie zu verlegen

Eines der besten Dinge an digitalen Geschenkkarten ist, dass sie unverlierbar sind. Sie bleiben dauerhaft in Ihrer E-Mail und Nachricht. Das ist eine große Erleichterung für Ihre Mitarbeiter/Kunden, die sich Sorgen machen, ihre Karten oder ihr Bargeld zu verlegen.

Note that 40% of 18 to 29-year-olds agreed to losing their physical gift cards right before they wanted to spend it.

Jeanine Skowronski, a credit card analyst for Bankrate.com, puts it in exact words:
"Electronic gift cards are definitely harder to lose. It can exist in your email, as opposed to a piece of plastic that may or may not make it into your wallet."

6. Leicht zu vergrößern

Da die meisten digitalen Geschenkplattformen API-basiert sind, ist das Hinzufügen einer ganz neuen Kategorie von Geschenken und ihrer jeweiligen Anbieter weniger zeitaufwändig und geldsparend. Die Entwickler und Systemtechniker können die Integration innerhalb weniger Tage vornehmen und so Ihre Markteinführungszeit verkürzen.

The greatest advantage of this time efficiency is it lets you grasp the pulse of gifting trends, what your employees/customers want as a corporate gift, and make changes in your gifts profile. This makes your gifting endeavor more relevant and highly desirable to the recipients.

7. Geringeres Risiko von Betrug und Missbrauch

Da die Informationen auf digitalen Geschenkkarten zum Zeitpunkt des Kaufs generiert und direkt an Sie oder den Empfänger gesendet werden, ist die Wahrscheinlichkeit geringer, dass Sie Opfer eines beliebten Geschenkkartenbetrugs werden, nämlich des Skimming von Geschenkkarten.

Moreover, you pay only for the gifts that have been redeemed - and all these transactions are available to you in real time. If you notice any discrepancy of any type, you can connect with the digital gift platform’s customer service and get the doubts ironed out.

8. Sie sind umweltfreundlich

Where climate change is becoming a reality rather than fiction, and natural catastrophes are hitting us with the regularity of a pendulum, preserving natural resources is key to our planet's sustenance.

Physische Geschenkkarten stehen dem nämlich entgegen:

Sie fordern die Abholzung wertvoller Bäume für die Herstellung einer Plastikkarte, die als einmaliger Gutschein fungiert.
Der physische Versand von Geschenken belastet die Welt mehr als der digitale.
Digitale Geschenkkarten müssen nicht auf Plastik oder Papier gedruckt werden, wodurch die sündhafte Verschwendung natürlicher Ressourcen vermieden wird.

Bei einer mikroskopischen Betrachtung dieser Klimaanforderungen können die Vorteile, die digitale Geschenkkarten garantieren, nicht deutlicher herausgestellt werden.

How to send a digital gift card

Das Versenden einer digitalen Geschenkkarte dauert in jedem Fall nicht länger als eine Minute. Hier sind die Schritte zum Versenden einer elektronischen Geschenkkarte.

To send a digital gift card, begin by choosing a gift card from a trusted platform that offers variety and convenience. Select the brand and value, add a personalized message, and enter the recipient’s email or mobile number. You can send it instantly or schedule it for a later date. It’s a quick, thoughtful, and hassle-free way to show appreciation.

Xoxoday Plum empowers you with access to a vast global catalog of digital gift cards, along with seamless delivery options and full control over personalization, tracking, and reporting—making it the perfect platform for effortless and impactful gifting at scale.

The Smart Shift: How digital rewards drive real results

Kantar, a leading global data insights and consultancy firm, faced a familiar challenge—how to motivate survey respondents at scale while streamlining the reward process. By switching to digital gift vouchers by Xoxoday Plum, they gave participants the freedom to choose from over 21,000+ reward options across 100 countries. In just three months, they successfully delivered rewards worth over $3.32 million, all while eliminating the inefficiencies of manual reward distribution.

Kantar’s success story is a clear indicator of where corporate gifting is headed—toward digital, scalable, and personalized experiences.

This shift is not just practical—it’s strategic. Whether you’re managing survey incentives, customer gifting, or employee recognition, Plum offers you a powerful digital reward platform that combines global reach with seamless automation. Customize rewards, simplify workflows, and elevate every interaction—without the friction of logistics or manual processes.

Ready to transform your reward strategy like Kantar did? Schedule a free demo and we will get you started!