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.
In questa pagina
Dall'uomo delle caverne che regalava un piccolo pezzo di roccia unico a una donna al modernissimo modus operandi dei regali digitali, la tradizione del dono - la più bella espressione di gratitudine, amore e rispetto per gli altri esseri umani - ha percorso un lungo cammino.
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 carta regalo digitale funziona come le normali carte regalo. A seconda del commerciante della carta, è possibile utilizzare questo codice online e in negozio. È una valida alternativa al denaro contante.
Oltre alla facilità di invio e ricezione, le carte regalo digitali apportano un valore epocale sia a chi le invia (aziende) sia a chi le riceve (dipendenti, clienti, partner).
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:
|
Caratteristica |
Carte regalo fisiche |
Carte regalo digitali |
|
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. |
|
Scalabilità |
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. |
|
Tracciamento e reportistica |
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. Enorme possibilità di personalizzazione
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 libertà di impostare i tagli e di non doversi attenere a un importo predeterminato, di modificare tutti gli elementi della carta regalo, dalla faccia al papillon cerimoniale per "scartare" la carta, i mittenti possono raggiungere il massimo livello di personalizzazione possibile con i regali virtuali.
2. La gratificazione istantanea rende insignificanti le barriere geografiche
Le carte regalo digitali vengono inviate al destinatario tramite SMS, e-mail o applicazioni specializzate. Garantiscono una consegna immediata e immediata, rendendo le carte regalo digitali la scelta migliore se i vostri dipendenti o clienti vivono in un altro Paese o continente.
Non si tratta solo di evitare i ritardi che i problemi transfrontalieri potrebbero causare. Si evita anche che i dipendenti e i clienti debbano recarsi al negozio e fare lunghe code per riscattare il regalo.
Bastano pochi clic e il regalo di loro scelta è in arrivo. Inoltre, le piattaforme di digital gifting come Plum offrono servizi multilingue, consentendo di creare un regalo e un messaggio personalizzato senza il timore che venga tradotto male.
3. Basso costo, alta prospettiva di effetto
Immaginate di inviare un migliaio di regali fisici a migliaia di dipendenti/clienti situati in sedi diverse?
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 per i regali dell'ultimo minuto
Per quanto il vostro programma di regali aziendali sia stato pianificato in modo impeccabile, con tutti i nomi dei destinatari e i soliti sospetti, può capitare di avere bisogno di regali dell'ultimo minuto.
Il vostro team di vendita potrebbe aver ottenuto una bella somma da un lead non troppo brillante, o la società del vostro stimato cliente potrebbe essere stata sul podio per ricevere un glorioso premio aziendale.
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. Nessuna possibilità di smarrimento
Uno degli aspetti migliori delle carte regalo digitali è che non sono richiudibili. Rimangono permanentemente nella vostra e-mail e nei vostri messaggi. È un grande sollievo per i vostri dipendenti/clienti che temono di smarrire le carte o i contanti.
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 da scalare
Poiché la maggior parte delle piattaforme di regali digitali sono basate su API, l'aggiunta di un'intera nuova categoria di regali e dei rispettivi fornitori richiede meno tempo e denaro. Lo sviluppatore e i tecnici di sistema possono realizzare l'integrazione in pochi giorni, riducendo i tempi di commercializzazione.
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. Riduzione del rischio di truffe e abusi
Poiché le informazioni sulle carte regalo digitali vengono generate al momento dell'acquisto e inviate direttamente a voi o al destinatario, è meno probabile che siate vittime delle più diffuse truffe sulle carte regalo, in particolare lo skimming delle carte 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. Sono eco-compatibili
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.
Le carte regalo fisiche sono antitetiche a questo sistema:
- Chiedono l'abbattimento di alberi pregiati per la creazione di una carta di plastica, che funziona come un buono una tantum.
- La spedizione dei regali inquina fisicamente il mondo rispetto alla loro controparte digitale.
- I biglietti regalo digitali non devono essere stampati su plastica o carta, evitando così il peccaminoso spreco di risorse naturali.
Considerando al microscopio questi requisiti climatici, i vantaggi garantiti dalle carte regalo digitali non possono essere evidenziati in modo più preciso.
How to send a digital gift card
L'invio di una carta regalo digitale, in qualsiasi circostanza, non richiede più di un minuto. Ecco i passaggi per inviare una carta 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!
