Physical vs Digital Gift Cards: Which Are Best for Your Business?

Gift cards aren’t one-size-fits-all. Some customers prefer the classic physical version, while others want the convenience of digital. Which option should your small business focus on? Let’s explore the pros and cons of each.

Physical Gift Cards

Pros:

• Tangible and great for gifting in person.
• Can be displayed in-store to drive impulse buys.
• Feels more “special” as a wrapped gift.

Cons:

• Require printing, stock, and storage.
• Can be lost or forgotten in a wallet.
• Less convenient for last-minute online shoppers.

Digital Gift Cards

Pros:

• Instant delivery – perfect for last-minute buyers.
• Easy to purchase from home or mobile.
• Eco-friendly and cost-effective.
• Can be personalised with messages or designs.

Cons:

• Less “special” for in-person gifting.
• Some older customers may not be as comfortable with digital.

The Best Approach? Offer Both.

Ideally, you want to cover both customer types. A physical card for those who like the traditional gift-giving experience, and a digital option for convenience seekers.

If you’re only offering one type of gift card, you may be missing out on sales. Providing both physical and digital versions gives your customers flexibility – and gives your business more chances to win.