Gift cards have become a ubiquitous part of the modern gift-giving experience, but there’s more to these small, plastic wonders than meets the eye. Dive into the world of gift cards with these 29 surprising facts that might just change the way you view these popular presents.
1. Ancient Roots:
Gift cards may seem like a modern invention, but their concept has ancient roots. The ancient Chinese used “money cards” made of paper for various transactions during the Tang Dynasty (618-907 AD).
2. First Gift Card:
The first gift card as we know it today was introduced by Neiman Marcus in 1994. Pioneering the concept, it paved the way for the widespread use of gift cards across various industries.
3. Unused Balances:
Approximately 6% of gift card balances go unused each year. This phenomenon, known as “breakage,” contributes to significant profits for retailers. Find more details at https://worldmetrics.org/unused-gift-card-statistics/
4. Multi-Billion Dollar Industry:
The gift card industry is a massive market, with global sales surpassing $835.2 billion in 2022. It’s a testament to the popularity and convenience of this gifting option.
5. Digital Dominance:
Digital gift cards are gaining ground rapidly, with their sales increasing at a rate of over 20% annually. The convenience of electronic delivery is a major driver of this trend.
6. Seasonal Peaks:
Gift card sales experience significant peaks during the holiday season. The months of December and January witness a surge in gift card purchases. At Kuditime, we are currently giving promos on gift cards during this festive season. Come and start redeeming with us from today!
7. Collectible Gift Cards:
Some avid collectors actively seek rare or special edition gift cards. These collectibles can hold significant value, especially if they are limited edition or feature unique designs. Examples are Disney and McDonalds gift cards.
8. Educational Uses:
Gift cards are not limited to retail. Educational institutions sometimes use gift cards as incentives for students or rewards for achievements. Examples of platforms that use gift cards as an initiative are Khan Academy, Udacity, Skillshare, Plural sight.
9. Personalized Gift Cards:
Personalization is on the rise in the gift card industry. Many platforms allow users to customise gift cards with personal messages, photos, or even video greetings. You can now personalise Amazon, Netflix, Starbucks gift cards as you send them to loved ones.
10. Regifting Trend:
A surprising number of gift cards are regifted. This study https://worldmetrics.org/unused-gift-card-statistics/ suggests that nearly 30% of gift cards are passed on to someone else.
11. Global Gift Card Market:
The gift card phenomenon is not confined to specific regions. It’s a global trend, with countries around the world embracing the convenience and flexibility of gift cards.
12. Gift Cards for Charity:
Charities increasingly use gift cards as a way to fundraise. Supporters can purchase gift cards, and a percentage of the value goes to the charitable cause.
13. Interactive Gift Cards:
Technological advancements are bringing interactive features to gift cards. Some cards now include augmented reality or QR codes that lead to personalised messages. Examples are Starbuck AR Gift cards, Nike QR code Gift cards.
14. Expiration Dates:
Many gift cards used to have expiration dates, but in several regions, legislation has been enacted to eliminate or extend these limits, providing consumers with more flexibility. Gift cards like Amazon do not have expiry dates.
15. Activation Delay:
Some gift cards have an activation delay, meaning they might not be usable immediately after purchase, requiring a waiting period or activation process. This is common in Mastercard and Visa gift cards. Some store gift cards take about 48 – 72 hours to be activated after purchase.
16. Inactivity Fees:
Certain gift cards might incur fees if left inactive for a specific period, reducing their value over time. These can be found in Walmart and green dot gift cards.
17. Replacement Policies:
Lost or stolen gift cards might have replacement policies, but they vary among retailers and might require proof of purchase.
18. International Use:
Not all gift cards can be used internationally due to currency or regional restrictions.
19. Limited Use:
Some gift cards may have limitations on where they can be redeemed, restricting their use to specific stores or within a particular network.
20. Reloadable Options:
While many gift cards are for one-time use, some are reloadable, allowing the addition of funds for multiple uses.
21. Balance Checking:
It’s possible to check the balance on most gift cards either online, via phone, or in-store.
22. Online Security:
Digital gift cards might have unique security measures to prevent unauthorised access or use.
23. Donation Options:
Several retailers offer the option to donate the remaining balance on a gift card to charity.
24. Gifting Limits:
Some gift cards might have limitations on the number that can be used in a single purchase, even if they cover the total amount.
25. Fine Print Differences:
The terms and conditions of gift cards vary widely between retailers, impacting expiry dates, fees, and other conditions.
26. No Cashbacks:
In most cases, gift cards cannot be exchanged for cash, and any returns are often refunded as store credit.
27. Physical vs. Digital:
Physical gift cards have different security measures compared to digital ones, each with its own advantages and risks.
28. Regulations and Laws:
Various regions have laws and regulations governing gift cards, dictating their expiry, fees, and consumer protections, which can differ significantly across countries and states.
CONCLUSION:
As these surprising facts reveal, gift cards have a rich history and continue to evolve in unexpected ways. Whether you’re a gifter or a recipient, these nuggets of information add an extra layer of intrigue to the unassuming gift card.
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FREQUENTLY ASKED QUESTIONS
1. What is the main benefit of a gift card?
Ans: Gift cards can be a convenient and useful substitute for cash when you need to make purchases or want to give a gift to someone else.
2. What is the most popular gift card in the world?
Ans: Apple/iTunes gift card.
3. Who invented gift cards?
Ans: Neiman Marcus introduced the first gift card using a payment infrastructure in late 1994.
