October always carries a sense of change. The air gets cooler, the leaves turn, and conversations about sustainability become louder as we head into the last stretch of the year. For many businesses, it’s also a reminder that customer habits are shifting — not only in what they buy, but in how they choose to give. One trend has been quietly reshaping the gifting landscape: the rise of the digital gift card.
At first glance, a digital card may seem like a small change. After all, a gift card is just a balance of money, right? But if we look closer, the impact goes far beyond convenience. The difference between plastic and digital is also a question of sustainability, loyalty, and the future of retail.
The hidden cost of plastic cards
Traditional gift cards have long been a retail staple. But behind their glossy surfaces lies a problem. Plastic requires energy to produce, packaging to distribute, and logistics to transport. Many of these cards — or their sleeves and blister packs — eventually end up in landfills. Add the millions of unredeemed cards that expire in drawers each year, and the environmental footprint of gifting suddenly looks less festive.
Consumers are increasingly aware of this. The younger generations, in particular, have grown up in a world where climate impact is top of mind. For them, choosing a sustainable option isn’t just “nice to have” — it’s part of their value system.
The digital shift
This is where digital gift cards step in. The market for them has exploded in recent years, with global projections showing it could reach USD 1,083 billion by 2029. That’s not just growth; that’s a transformation. According to Blackhawk Network, the adoption of digital cards is growing at about 8% CAGR between 2023 and 2028, as consumers embrace speed, personalization, and the simple fact that these cards don’t require any plastic.
And it’s not only about being eco-friendly. A digital gift card is faster to buy, easier to send, and more fun to receive. With many cards now customizable with animations, photos, or even videos, they feel more personal than a generic piece of plastic. Plus, they live in your smartphone wallet, ready to be scanned at checkout. No more rummaging through drawers or purses.
Why retailers should care
For retailers, the shift is even more exciting. Every digital card comes with real-time data: who bought it, when it was redeemed, and what was purchased with it. This information is gold for loyalty programs, enabling highly targeted campaigns. Imagine reminding a customer about an unused balance with a personalized promotion — a small nudge that not only gets them back in-store but also boosts their total spend.
Then there’s the issue of cost. Without printing or shipping, digital cards are cheaper to produce. They can also be distributed instantly across channels — online, in-store, through apps, or even via social media. Add to that the fact that they integrate seamlessly with loyalty programs, and the business case becomes even stronger.
Challenges and opportunities
Of course, no innovation comes without hurdles. Fraud and phishing remain concerns, and not every consumer is ready to give up the tactile “feel” of a physical card. Some regions still face digital divides where smartphone usage isn’t universal. Retailers who want to lead this transition need to offer both options — making digital the default, but keeping physical cards available on demand, ideally in recyclable formats.
Security is another area that’s evolving quickly. With tokenization, AI-driven fraud detection, and blockchain solutions entering the space, digital cards are becoming safer each year.
What’s next for gifting
Looking ahead, the possibilities are exciting. Imagine “smart” gift cards that adapt over time, shifting balances, or offering surprise bonuses. Picture cards that work across multiple brands in a shared ecosystem, or even subscription-based models where a single gift unlocks recurring experiences. With wearable tech and NFC payments on the rise, gifting could soon be as easy as tapping your smartwatch.
A gift for the planet
In the end, digital gift cards are more than just a modern convenience. They represent a shift in values — toward sustainability, toward personalization, and toward smarter retail. For customers, they’re a greener, faster, more meaningful way to give. For businesses, they’re a chance to reduce costs, strengthen loyalty, and lead the market in innovation.
So as we step into autumn, perhaps the most sustainable gift we can give is not only what’s inside the card, but the choice of the card itself.
