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Gift cards are no longer just last-minute holiday presents. For eCommerce businesses, especially WooCommerce stores, gift cards have become a powerful growth lever, driving upfront revenue, attracting new customers, increasing average order value, and improving retention.
As digital commerce accelerates, consumer behavior around gifting is changing fast. Digital gift cards, mobile redemption, self-use purchases, and corporate gifting are all reshaping how online stores monetize gift cards in 2026.
To help you make smarter decisions, we’ve compiled 15+ of the most important gift card statistics, categorized by market size, consumer behavior, redemption patterns, digital adoption, and revenue impact, so you can see exactly where the opportunity lies.
Key Takeaways:
- Gift cards are a trillion-dollar market and are expected to continue growing through 2026.
- Digital and mobile gift cards now lead the market.
- Gift cards bring in new customers and encourage higher spending.
- Redemption often leads to repeat purchases and long-term loyalty.
- Seasonal and corporate use cases help generate revenue year-round.
1. Gift Card Market Size & Growth Outlook
Before diving into consumer behavior and performance metrics, it’s important to understand the sheer scale of the gift card economy. The numbers clearly show that gift cards are no longer a niche add-on; they’re a core revenue stream.
- The global gift card market was valued at approximately $950 billion in 2024 and is projected to reach $2,290.7 billion by 2034, driven by eCommerce growth and digital payments.
Source: Allied Market Research - The digital gift card market alone is expected to grow from $581.38 billion in 2025 to $1259.02 billion in 2030 at a compound annual growth rate (CAGR) of 16.6%.
Source: The Business Research Company - In the US, the gift card and incentive card market is expected to grow from $207 billion in 2025 to over $220 billion in 2026, showing strong year-over-year momentum.
Source: Mordor Intelligence
2. Digital Gift Cards & Mobile Adoption Trends
Consumer preferences are rapidly shifting from physical gift cards to digital and mobile-friendly formats, particularly in online shopping environments.
- More than 65% of B2C digital gift card transactions now happen on mobile devices, highlighting the dominance of smartphones in gifting behavior.
Source: Strategic Market Research - In the US market, digital gift cards accounted for 58.3% of total gift card revenue in 2025, and are expected to expand at 11.86% CAGR.
Source: Mordor Intelligence - Consumers purchase an average of 1.5 digital gift cards per person per year, compared to 3 – 3.5 physical gift cards, but digital cards are growing faster in load value and frequency.
Source: PaymentsJournal & Javelin Strategy
3. Consumer Gift Card Purchasing Behavior
Understanding why people buy gift cards is just as important as knowing how many they buy.
- 81% of consumers purchased at least one gift card in the past year, marking a 6% year-over-year increase.
Source: TSG Payments - Gift cards remain the most requested gift, outperforming physical products, apparel, and electronics across age groups.
Source: PaymentsJournal - Nearly 57% of consumers say gift cards encourage them to try a new brand or retailer they haven’t purchased from before.
Source: TSG Payments
4. Gift Card Redemption, Overspending & Breakage
What happens after a gift card is redeemed is where the real revenue impact shows up.
- More than 60% of gift card recipients spend more than the card’s value, increasing average order value at checkout.
Source: PaymentsJournal - On average, consumers spend 30% more than the face value of their gift card when redeeming it online.
Source: PaymentsJournal - Despite strong redemption rates, billions of dollars in gift card balances remain unused each year, largely due to forgotten or partially redeemed cards.
Source: CreditCards.com - In the US alone, consumers held over $21 billion in unused gift card balances, creating both breakage revenue and re-engagement opportunities.
Source: CreditCards.com
5. Seasonal Trends & Best Times to Sell Gift Cards
Gift cards play a major role in seasonal and holiday shopping, but their impact doesn’t stop in December.
- US consumers are expected to spend nearly $29 billion on gift cards during the holiday season, making them one of the top gifting categories.
Source: National Retail Federation (NRF) - Corporate gifting and incentives now account for a rapidly growing share of digital gift card sales, especially for employee rewards and customer promotions.
Source: Fortune Business Insights
6. Revenue & Retention Impact for eCommerce Stores
Beyond upfront sales, gift cards have a long-term impact on customer lifetime value.
- Customers who enter a store via a gift card are more likely to make repeat purchases than first-time discount shoppers.
Source: Small Business Coach - Gift card users are significantly more likely to join loyalty programs and email lists during redemption.
Source: PaymentsJournal - Closed-loop gift cards (store-specific cards) account for over 62% of total digital gift card volume because brands retain full control over spend.
Source: BlackHawk Network
The data makes one thing clear: gift cards are no longer optional add-ons; they’re a strategic revenue and retention tool for eCommerce stores in 2026.
First, the continued growth of the global and digital gift card market shows that customers are actively choosing gift cards over traditional products. For your store, this means gift cards can generate upfront revenue without putting pressure on inventory, helping improve cash flow during both peak and slow seasons.
Second, the rapid shift toward digital and mobile gift cards highlights the importance of offering instant, flexible gifting options. Shoppers expect to send gifts quickly, often from their phones- and stores that fail to support email delivery and mobile-friendly redemption risk losing sales to competitors that do.
Third, consumer behavior around gift cards favors growth. Since most recipients spend more than the card’s value, gift cards naturally increase average order value. At the same time, a large percentage of recipients are first-time buyers, making gift cards a low-friction customer-acquisition channel.
Redemption data also reveals a major retention opportunity. Gift cards often lead to repeat purchases, email signups, and loyalty program enrollment, especially when stores actively remind customers about balances and redemption deadlines. Even unredeemed balances represent a chance to re-engage customers rather than lost revenue.
Finally, seasonal and corporate gifting trends prove that gift cards work year-round, not just during holidays. From employee rewards and referral campaigns to refunds as store credit, gift cards help stabilize revenue while keeping customers connected to your brand.
Gift cards work best when they’re digital, automated, and easy to manage. That’s exactly what WebToffee WooCommerce Gift Cards is designed for.
Built specifically for WooCommerce stores, the plugin lets you create unlimited digital and physical gift cards that customers can buy, send, and redeem effortlessly. Shoppers can email gift cards with custom messages, schedule delivery for special occasions, and choose from 20+ ready-made templates for holidays and events.
On the admin side, you stay in control. Offer refunds as store credit, set fixed or custom gift card amounts, manage customer credit balances, and apply advanced usage rules to control where gift cards can be redeemed.
Whether you want to drive upfront revenue, attract new customers, or increase repeat purchases, WebToffee WooCommerce Gift Cards is a simple, scalable way to grow your WooCommerce store in 2026.
Key Features:
- Unlimited Digital & Physical Gift Cards
- Scheduled Gift Card Delivery
- 20+ Ready-Made Gift Card Templates
- Flexible Store Credit & Refund Management
- Advanced Gift Card Usage Rules
Gift cards have evolved into a core growth channel for eCommerce businesses, not just a seasonal convenience. With the market continuing to expand, digital and mobile gift cards leading adoption, and consumers consistently spending more than the card’s value, the opportunity for online stores is significant.
For WooCommerce store owners, gift cards offer a rare combination of benefits, upfront revenue, customer acquisition, higher order values, and long-term retention, all without increasing inventory risk. Gift cards can support revenue generation throughout the entire year.
As customer expectations continue to shift toward instant, flexible, and personalized gifting experiences, stores that invest in a structured gift card strategy will be better positioned to stay competitive in 2026 and beyond. Whether used for promotions, refunds, loyalty, or corporate gifting, gift cards are no longer optional, they’re a proven, data-backed growth tool for modern eCommerce businesses.
