Physical vs Digital Gift Cards: A Thorough Competitive Analysis
Physical vs digital gift cards—which works best for modern gifting? This blog compares both on delivery speed, cost, personalization, scalability, and ease of use to help you choose the perfect option for employee rewards or customer gifting.
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Desde el hombre de las cavernas que regalaba a una mujer un pequeño trozo brillante de roca única hasta el modus operandi ultramoderno de los regalos digitales, la tradición de regalar -la expresión más hermosa de mostrar gratitud, amor y respeto a otros seres humanos- ha recorrido un largo camino.
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.
➼ 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.
Una tarjeta regalo digital funciona igual que las tarjetas regalo normales. Dependiendo del vendedor de la tarjeta, puede utilizar este código en línea y en la tienda. Tenga en cuenta que es una alternativa válida al dinero en efectivo.
Aparte de la facilidad de envío y recepción, las tarjetas regalo digitales aportan un valor trascendental tanto al emisor (empresas) como al receptor (empleados, clientes, socios...) Los siguientes atributos de valor son sólo la punta del iceberg.
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:
|
Característica |
Tarjetas regalo físicas |
Tarjetas regalo digitales |
|
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. |
|
Escalabilidad |
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. Enormes posibilidades de personalización
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.
Con la libertad de fijar sus denominaciones y no tener que ceñirse a una cantidad predeterminada, modificar todos los elementos de la tarjeta regalo, desde la cara hasta una pajarita ceremonial para "desenvolver" la tarjeta, los remitentes pueden alcanzar el nivel más concebible de personalización con regalos virtuales.
2. La gratificación instantánea hace que las barreras geográficas sean insignificantes
Las tarjetas regalo digitales se envían al destinatario a través de SMS, correo electrónico o aplicaciones especializadas en regalos. Garantizan una entrega instantánea e inmediata, lo que convierte a las tarjetas regalo digitales en la mejor opción si tus empleados o clientes viven en otro país o continente.
Tenga en cuenta que no sólo le ahorra los retrasos que pueden provocar los problemas transfronterizos. También evita que sus empleados y clientes tengan que ir a la tienda y hacer largas colas para canjear el regalo.
Todo lo que necesitan son unos pocos clics, y el regalo de su elección está en camino. Además, las plataformas de regalos digitales como Plum ofrecen servicios multilingües que permiten crear un regalo y un mensaje personalizados sin temor a que se traduzcan mal.
3. Bajo coste, alto efecto prospectivo
¿Se imagina enviar mil regalos físicos a miles de empleados/clientes ubicados en diferentes lugares?
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. Idea para regalos de última hora
Por muy inmaculadamente planificado que esté su programa de regalos de empresa con todos los nombres de los destinatarios y los sospechosos habituales de los eventos, la necesidad de regalos de última hora puede surgir de la nada.
Es posible que su equipo de ventas haya conseguido una buena suma a partir de un cliente potencial no tan brillante, o que la empresa de su estimado cliente haya estado en el podio para la recepción de un glorioso premio empresarial.
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. No hay posibilidad de extraviarlas
Una de las mejores cosas de las tarjetas regalo digitales es que son imperdibles. Permanecen permanentemente en su correo electrónico y mensaje. Es un gran alivio para tus empleados/clientes preocupados por extraviar sus tarjetas o dinero en efectivo.
Note that 40% of 18 to 29-year-olds agreed to losing their physical gift cards right before they wanted to spend it.
"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. Fácil de ampliar
Dado que la mayoría de las plataformas de regalos digitales se basan en API, añadir toda una nueva categoría de regalos y sus respectivos vendedores requiere menos tiempo y dinero. El desarrollador y los técnicos del sistema pueden realizar la integración en pocos días, lo que reduce el tiempo de comercialización.
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. Menor riesgo de estafas y abusos
Como la información de las tarjetas regalo digitales se genera en el momento de la compra y se envía directamente a usted o al destinatario, es menos probable que sea víctima de las estafas habituales con tarjetas regalo, como el skimming de tarjetas regalo.
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. Son ecológicos
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.
Las tarjetas regalo físicas son antitéticas desde entonces:
- Exigen talar árboles valiosos para crear una tarjeta de plástico, que funciona como un vale único.
- El envío físico de regalos contamina el mundo en comparación con sus homólogos digitales.
- Las tarjetas regalo digitales no tienen que imprimirse en plástico o papel, lo que evita el pecaminoso despilfarro de recursos naturales.
Con una consideración microscópica de estos requisitos climáticos, los beneficios garantizados por las tarjetas regalo digitales no pueden destacarse con mayor precisión.
How to send a digital gift card
Enviar una tarjeta regalo digital, en cualquier circunstancia, no te llevará más de un minuto. Estos son los pasos para enviar una tarjeta regalo.
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!
