Physical vs Digital Gift Cards: A Thorough Competitive Analysis
Depuis l'homme des cavernes qui offrait un petit morceau de roche brillant à une femme jusqu'au mode opératoire ultramoderne des cadeaux numériques, la tradition du cadeau - la plus belle expression de gratitude, d'amour et de respect envers d'autres êtres humains - a parcouru un long chemin.
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.
Une carte-cadeau numérique fonctionne comme une carte-cadeau classique. Selon le marchand de cartes, vous pouvez utiliser ce code en ligne et en magasin. Notez qu'il s'agit d'une alternative valable à l'argent liquide.
Outre la facilité d'envoi et de réception, les cartes-cadeaux numériques apportent une valeur considérable tant à l'expéditeur (entreprises) qu'au destinataire (employés, clients, partenaires.) Les attributs de valeur suivants ne sont que la partie émergée de l'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:
|
Fonctionnalité |
Cartes cadeaux physiques |
Cartes-cadeaux numériques |
|
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. |
|
Évolutivité |
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. Une grande marge de manœuvre pour la personnalisation
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.
En ayant la liberté de fixer leurs dénominations sans avoir à s'en tenir à un montant prédéterminé, de modifier tous les éléments de la carte-cadeau, de la face au nœud papillon de cérémonie pour "déballer" la carte, les expéditeurs peuvent atteindre le niveau de personnalisation le plus concevable avec les cadeaux virtuels.
2. La satisfaction instantanée rend les barrières géographiques insignifiantes.
Les cartes-cadeaux numériques sont envoyées au destinataire par SMS, par courrier électronique ou par l'intermédiaire d'applications spécialisées. Elles garantissent une livraison instantanée et immédiate, ce qui fait des cartes-cadeaux numériques le meilleur choix si vos employés ou vos clients vivent dans un autre pays ou sur un autre continent.
Notez qu'il ne s'agit pas seulement d'éviter les retards dus à des problèmes transfrontaliers. Vous évitez également à vos employés et à vos clients d'avoir à se rendre au magasin et à faire la queue pour échanger le cadeau.
Il leur suffit de quelques clics pour que le cadeau de leur choix arrive. De plus, les plateformes de cadeaux numériques comme Plum offrent des services multilingues, ce qui vous permet de créer un cadeau et un message personnalisés sans craindre qu'ils ne soient mal traduits.
3. Faible coût, forte perspective d'effet
Imaginez que vous envoyiez un millier de cadeaux physiques à des milliers d'employés/clients situés dans des lieux différents ?
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. Idée de cadeau de dernière minute
Même si votre programme de cadeaux d'entreprise est parfaitement planifié avec tous les noms des destinataires et les suspects habituels des événements, un besoin de cadeaux de dernière minute peut surgir de nulle part.
Votre équipe de vente a peut-être évalué une belle somme à partir d'une piste chaude pas très brillante, ou l'entreprise de votre client estimé a peut-être été sur le podium pour la réception d'une glorieuse récompense commerciale.
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. Aucune possibilité de les égarer
L'un des avantages des cartes-cadeaux numériques est qu'elles ne sont pas jetables. Elles restent en permanence dans votre courrier électronique et votre message. C'est un grand soulagement pour vos employés/clients qui s'inquiètent d'égarer leurs cartes ou leur argent.
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. Facile à mettre à l'échelle
La plupart des plateformes de cadeaux numériques étant basées sur des API, l'ajout d'une toute nouvelle catégorie de cadeaux et de leurs vendeurs respectifs prend moins de temps et permet de gagner de l'argent. Le développeur et les techniciens du système peuvent procéder à l'intégration en quelques jours, ce qui réduit votre temps de mise sur le marché.
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. Diminution du risque d'escroquerie et d'abus
Comme les informations figurant sur les cartes-cadeaux numériques sont générées au moment de l'achat et envoyées directement à vous ou au destinataire, vous risquez moins d'être victime des escroqueries les plus répandues, à savoir l'écrémage des cartes-cadeaux.
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. Ils sont respectueux de l'environnement
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.
Les cartes cadeaux physiques y sont opposées depuis :
- Ils exigent l'abattage d'arbres précieux pour la création d'une carte en plastique, qui fonctionne comme un bon d'achat unique.
- L'envoi de cadeaux pollue physiquement la planète par rapport à leurs équivalents numériques.
- Les cartes-cadeaux numériques n'ont pas besoin d'être imprimées sur du plastique ou du papier, ce qui permet d'éviter le gaspillage des ressources naturelles.
En tenant compte de ces exigences climatiques, les avantages garantis par les cartes cadeaux numériques ne peuvent être mis en évidence de manière plus précise.
How to send a digital gift card
L'envoi d'une carte-cadeau numérique ne prend en aucun cas plus d'une minute. Voici les étapes à suivre pour envoyer une carte-cadeau.
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!