Gift Cards Are Gaining Momentum: What Merchants Need to Know in 2026

Why It Matters

Gift cards are proving to be a low‑cost acquisition channel that also lifts average order size, making them a strategic revenue lever for retailers and service providers. The untapped B2B segment offers merchants a new growth frontier in employee rewards and corporate gifting.

Key Takeaways

• Gift cards attract 55% new customers, higher among Millennials/Gen Z.
• 44% spend more than card value, boosting revenue.
• 39‑49% avoid cards if channel unavailable; omnichannel needed.
• Digital+physical purchases 27%; physical still 36% share.
• 81% want B2B cards; only 41% receive them.

Pulse Analysis

Gift‑card programs have evolved from simple paper vouchers to sophisticated, data‑driven marketing tools. The 2026 study highlights a clear shift in consumer psychology: shoppers now view a gift card as an invitation to explore new brands, especially younger cohorts who are more experimental. This behavior translates into a measurable lift in acquisition metrics, allowing merchants to tap into audiences they might otherwise miss through traditional advertising. By integrating gift‑card offers into loyalty and referral schemes, retailers can amplify brand exposure while keeping acquisition costs modest.

Beyond acquisition, the financial impact of gift cards is evident at the point of redemption. Nearly half of consumers exceed the card’s face value, effectively turning a prepaid instrument into incremental spend. However, this upside is contingent on seamless, omnichannel redemption experiences. The study shows that a missing redemption channel can deter up to half of potential users, underscoring the need for retailers to support in‑store, online, mobile app, and digital‑wallet options. Email‑delivered digital cards are now the preferred format, but physical cards still command a 36% share, indicating that a hybrid strategy remains prudent.

The most compelling growth avenue lies in B2B gift‑card adoption. While 81% of respondents would welcome employer‑issued cards, only 41% have received one, revealing a sizable gap. Companies can leverage this demand to strengthen employee engagement, reward performance, and even drive B2C sales through corporate gifting programs. For merchants, building a B2B platform—complete with analytics, bulk issuance, and customizable branding—can unlock a new revenue stream and deepen relationships with corporate clients. As the market matures, those who blend omnichannel convenience with targeted B2B solutions will capture the lion’s share of gift‑card‑driven growth.