The Evolution of Digital Gift Cards: Key Trends and Top Performers in 2025

Table of Contents

1. Key Highlights
2. Introduction
3. Benchmarking the Best: Evaluation Overview
4. What Sets the Best Apart
5. The 2025 Top Performers
6. The Mobile Mandate
7. Areas for Growth
8. Recommendations for 2025 and Beyond
9. Conclusion
10. FAQ

Key Highlights

• The 2025 edition of the Best Digital Gift Card Programs report evaluated 100 U.S. brands, highlighting the growing importance of mobile optimization in the gift card landscape.
• Key differentiators for top-performing brands include enhanced customization options, omnichannel accessibility, streamlined purchasing, and strong post-purchase engagement practices.

Introduction

In a world increasingly dominated by digital interactions, gift cards have transitioned from mere consumer convenience to a vital element in merchants' strategic toolbox. According to a recent study, U.S. consumers favor digital gift cards more than ever, with sales projected to reach nearly $200 billion by 2025. This shift towards online gifting emphasizes the need for brands to enhance their digital gift card programs.

The 2025 Best Digital Gift Card Programs report, produced by Blackhawk Network and NAPCO Research, sheds light on how the top U.S. brands are optimizing their offerings to remain competitive in this evolving landscape. The report evaluates brands across 175 unique criteria, focusing on key performance areas such as ease of discoverability, offering flexibility, and recipient experience.

This article delves into the findings of the report, outlines the top performers, explores key trends, and offers recommendations for brands looking to improve their digital gift card programs in 2025 and beyond.

Benchmarking the Best: Evaluation Overview

The report conducted a meticulous analysis of 100 U.S. brands spanning 17 product verticals. Evaluators focused on four core components:

1. Ease of Discoverability: This included the accessibility of the gift card section on websites and apps and efficient on-site search functions.
2. Offering Flexibility: Criteria encompassed options for purchasing a variety of gift cards, the range of design selections, and delivery choices.
3. Checkout/Post-Purchase: Analysis included diverse payment options and integration with loyalty programs.
4. Recipient Experience: Considerations included mobile wallet compatibility, split tender, and balance-check capabilities.

The data for this report was collected from September to December 2023, coinciding with the holiday season when gift card promotions were at their peak.

Noteworthy Additions for 2025

Among the notable advancements in this year’s report were:

• A distinct shift towards digital-only gift cards, aligning with consumer trends indicating a strong preference for electronic methods.
• Expanded criteria related to digital delivery options, including the integration of SMS as a delivery method—a hit with tech-savvy consumers.
• The inclusion of two new verticals: consumer electronics and convenience stores, acknowledging the diverse demand in the market.

What Sets the Best Apart

The research unveiled pronounced disparities between "Best in Class" brands and those lagging in the rankings. Here are significant factors that distinguished the top performers:

Omnichannel Gift Card Access

Top brands provided seamless gifting experiences across multiple platforms, including desktops, mobile websites, and apps. For instance, brands like Staples and Amazon.com integrated gift card functionality within their loyalty programs, enhancing customer retention through brand engagement.

Enhanced Customization

Customization options became a critical differentiator—isolation from generic offerings. Brands offering personalized gift cards with customizable images, messages, and delivery timings had a marked advantage. This personalization led to increased consumer satisfaction and engagement, which ultimately translates into higher redemption rates.

Streamlined Purchasing Experience

Intuitive designs and frictionless checkout processes emerged as hallmarks of top-tier brands. For instance, leading performers invested in mobile-first designs that emphasized fast loading times and responsive layouts.

Post-Purchase Engagement

Brands that considered after-purchase communications thrived. Engaging customers post-delivery—such as reminders to use gift cards and integrations with loyalty points—painted a holistic picture of enhancing user experience and boosting brand loyalty.

The 2025 Top Performers

Based on the comprehensive evaluations, the following brands stood out in the 2025 Best Digital Gift Card Programs report:

• Staples: 104%
• Amazon.com: 101%
• Best Buy: 99%
• Sephora: 99%
• Target: 99%
• Cinemark: 96%
• Panera Bread: 92%
• Williams-Sonoma: 92%
• Office Depot: 90%
• Ulta Beauty: 90%

These brands achieved scores exceeding 100 percent due to bonus point opportunities for superior services and offerings.

The Mobile Mandate

Among the most significant findings of the 2025 report is the urgency for brands to prioritize mobile optimization. Brands that failed to adapt and enhance their mobile experiences witnessed lower overall scores, highlighting the changing dynamics of consumer behavior.

Key Insights into Mobile Optimization

• Responsive Design: Top-performing brands ensured that mobile layouts were equally functional and aesthetically pleasing as their desktop counterparts.
• Feature Parity: Successful brands offered the same features on mobile as on desktop, ensuring consumers could schedule deliveries and customize gift cards on the go.

Areas for Growth

Despite commendable advancements, temporary gaps persist. The report highlighted several areas where brands can improve:

• Limited Personalization Options: Nearly 40% of brands provided no customization features, restricting their appeal.
• Deficient Promotion Strategies: Many brands ignored opportunities to aggressively market their digital gift card products, particularly during crucial seasonal campaigns.
• Inconsistent Customer Support: A lack of clear FAQs or support mechanisms hampered user experience and detracted from the overall value of gift cards.

Recommendations for 2025 and Beyond

To capture the growing market share fueled by the demand for digital gift cards, brands must adapt and evolve. Here are several suggested strategies moving forward:

1. Invest in Mobile-First UX: Establish design principles that prioritize mobile users, ensuring ease of navigation and efficiency in checkout processes.
2. Expand Personalization Options: Encourage customer engagement by allowing personalization features such as themed card designs, images, or even video messages.
3. Integrate Gift Cards into Loyalty Programs: Maximize the utility of gift cards by promoting them through existing customer loyalty initiatives.
4. Enhance Marketing Efforts: Leverage email campaigns, social media, and seasonal promotions to actively promote digital gift cards.
5. Focus on Post-Purchase Engagement: Implement systems to help remind customers of their gift card balances, redemption opportunities, and promotional tie-ins.

Conclusion

The digital gift card landscape has evolved dramatically, becoming a pivotal battleground for customer engagement and loyalty. Brand performance in this domain is increasingly determined by user experience and technological investment. As detailed in the 2025 Digital Gift Card Programs report, brands that prioritize seamless functionality, personalization, and mobile accessibility stand poised to dominate the market.

By embracing innovative practices and refining their digital gift card programs, retailers can create meaningful connections with consumers, ensuring that gift cards are not merely seen as a gifting option but as a strategic asset that enhances brand loyalty and profitability.

FAQ

What are the key trends observed in the 2025 digital gift card report?

The 2025 report highlights trends including an increased preference for mobile shopping, the shift towards digital-only gift cards, enhanced customization options for recipients, and the integration of gift cards within loyalty programs.

Who are the top performers in the 2025 Best Digital Gift Card Programs report?

The leading brands include Staples, Amazon.com, Best Buy, Sephora, and Target, all demonstrating superior mobile experiences, customization options, and post-purchase engagement strategies.

What common challenges do brands face in their digital gift card programs?

Challenges include limited customization options, insufficient promotion of their gift card offerings, and inconsistent support for users facing issues with digital gift cards.

How can brands improve their digital gift card strategies in 2025?

Brands can improve by enhancing their mobile user experience, expanding personalization features, promoting gift cards actively, and ensuring effective post-purchase engagement.

What impact do personalized digital gift cards have on customer engagement?

Personalized gift cards significantly boost consumer engagement and satisfaction, leading to improved redemption rates and fostering greater loyalty to the brand.

As retailers understand the potency of digital gift cards, they must innovate continuously to capture consumer interest and adapt to a rapidly changing digital landscape.