With inflation, tariffs, higher costs everywhere, consumers are reshaping their gifting habits. The research backs it: BlackHawk Network reports that gift cards are emerging as the flexible solution for holiday spending, representing 39% of total holiday budgets, which amounts to a 12% lift over last year.

While many Gen Z shoppers report plans to reduce overall gifting budgets (PwC’s 2025 Holiday Outlook survey said a 23% cut), when it comes to what they do want or will accept, money or gift cards show up high on the list. According to Ypulse, money or gift cards are the second top wish list item for teens at 45%, only behind apparel (54%). In essence, they may have less to spend, but they value flexibility and choice. A gift card gives them exactly that.

Gen Z isn’t just mobile-first; they’re often mobile-only. And for many of them, a physical gift card they either have to keep on their person, or mail to their giftee, is a hassle they’d rather not bother with. In fact, one report found that digital gift cards saved the day in a shorter-than-usual holiday window, and 60% of Gen Z had purchased one in 2024. So keeping this in mind:

• Make sure your digital card is easy to buy, send, redeem (in-app, online, and in-store).
• Optimize for mobile wallets, QR codes, instant email/text delivery.
• Highlight “send now, arrives instantly” options for the procrastinators (we see you).
• For the in-store impulse buyer: display gift‐card kiosks at checkout with QR-enabled top-ups.

A gift card’s true value doesn’t amount to just the amount of dollars held on the card. Other rewards and perks can be packaged along with gift cards to entice Gen Z shoppers to get the best bang for their buck. Use them as promotional tools in these ways:

• “Spend $100 on a gift card and we’ll add $10 extra on us.”
• “Get double loyalty points when you buy a gift card this week.”
• “Buy a gift card and unlock a limited-edition redemption benefit.”
• “Purchase a $100 gift card and receive a complimentary styling appointment with our top-tier team at your convenience!"

This kind of value stacking speaks to Gen Z’s budget-conscious mindset while also making your cards more appealing to everyone.

Forget the plain plastic card. Give them design options, personalization, digital stickers, shareable links. Gen Z likes to feel like the gift is for them, even if it’s a card.

• Let the buyer personalize their gift cards (or the less expensive gift certificates) with their name, a message, or even a photograph.
• Let the recipient easily share the card (or its redemption moment) on social media. Even the “I got a gift card” selfie counts!
• Include limited-edition seasonal themes: holiday graphics, “New Year, new you” motifs, etc.

According to OptCulture, “Gift cards are often purchased by customers as gifts, which means they’re a great way for retailers to gain exposure to new customers. When someone buys a gift card for a friend or family member, it introduces your brand to potential customers who may not have visited your store before.”

Gift cards are your foot‐in‐the‐door. Use them to bring in new Gen Z shoppers and to convert them. Offer gift cards that require the recipient to create an account/log in so you can capture their email, phone, preferences in your retail CRM.

• Prompt them to redeem it early so it is fresh in their minds (e.g., “Use it by January and get free shipping”).
• Offer targeted promos immediately post-redemption: “Thanks for using your card! Here’s 20% off your next purchase.”

You want Gen Z not just to spend once, but to stick around. That’s what your loyalty program is also doing. So, don’t treat them like separate entities but use one to juice the other. In other words, gift cards + loyalty programs = retention magic.

• Let loyalty points be redeemable for gift‐card credit.
• When someone buys a gift card, give them bonus loyalty points.
• When someone redeems a gift card, make it an opportunity to sign them up for your rewards program.
  

The holiday season is one of the easiest times to sign new customers up for your loyalty program. Gift cards can help your sales associates convert more to your program when used the right way.

Holiday returns are inevitable. Here’s something interesting: 8 in 10 shoppers who returned items want gift cards instead of cash. So instead of refunding cash or back onto their cards, offer a gift‐card option, and even consider adding an extra bonus:

• “Returning your sweater? How about we refund you by giving you this $75 gift card instead? And redeem by the end of January to get an extra $10 bonus boost!”
• “Returning anything this holiday season? Bring them back to any of our stores and we’ll also gift you a $5 rechargeable gift card!”
  

Use the post-holiday redemption window (early January) to drive the first purchase of the new year with this strategy. Gift cards help extend the holiday-moment far beyond December.

Messaging matters, even when selling gift cards. Gen Z is obviously savvy to all aspects of social media and culture messaging. They’re keenly aware of budgets, sustainability, and authenticity. Use your gift-card campaign copy to reflect these values:

• “Give them the surprise they’ll actually use. Gift cards never go to waste.”
• “Flexibility in a box: they choose what they want, when they want it.”
• Highlight how a gift card avoids over‐buying and uninspired gifts. Perhaps as an effective compromise between them and the “out of touch” older generations.
• Promote it as smart and shareable, not just convenient.
  

Gift cards can be a sort of blank slate for your brand’s voice and messaging. Maybe you’re not just selling digital dollars, but an entry ticket into the world of your brand’s aesthetic. Keep the creativity flowing and keep your eyes on social trends to see what messaging may work the best this year.