While gift cards were once considered to be impersonal or simply a means to a quick-and-easy last-minute gift, that is no longer the case. Usage, particularly in digital gift cards, is growing rapidly through the use of digital wallets, mobile apps and smartphones.
In fact, digital gift card sales were up over 80 percent at the end of 2020, as compared to 2019.1 The $160 billion gift card market represents a significant source of revenue for retailers and restaurants, and while growth in physical gift cards was 9 percent in 2019-2020, digital gift card adoption is projected to grow 23 percent by 2025 – more than 2.5 times faster than overall gift card sales.2
Whether digital, electronic or plastic, consumers spend an average 31 percent more in retail environments and 13 percent more in foodservice.3 With the holiday season already in sight, you should have a gift card strategy at the ready.
For talech users, we suggest talech Gift, which offers digital and physical cards, and for others, we recommend our Electronic Gift Card (EGC) program that includes a physical gift option. All are customizable.
Interested in using talech? From now until Dec. 31, you could receive up to $1,200 in statement credit when you start using talech. Learn more here.
This article was originally published in Elavon’s Payment Smart newsletter. The Washington Hospitality Association’s payments processing system is backed by U.S. Bank/Elavon.