In today’s dynamic economy, consumers are constantly readjusting their budgets and seeking smarter ways to manage everyday expenses. Gift cards can be an important part of the mix.

The Q4 2025 Gift Card Gauge from Fiserv reveals a notable evolution in consumer behavior: gift cards are no longer viewed solely as presents for others. Instead, they are being embraced as personal financial wellness tools that enable shoppers to maximize their budgets and help merchants to boost brand loyalty and streamline inventory management.

Gift cards deliver personal budgeting benefits

Historically tied to special occasions and gifting, gift cards are increasingly being used for practical, everyday spending. More than half of consumers say they incorporate gift cards into their budgeting strategy. Whether received or purchased directly, these cards offer flexibility that consumers are using to track and balance expenses. 

The speed at which gift cards are spent reinforces their role in money management. Sixty-three percent of consumers use their cards in less than a month, making them an ideal tool for structuring short-term spending plans. By allocating gift cards toward specific categories, shoppers gain a clear way to manage discretionary funds without overspending.

A financial wellness tool for everyday needs

Consumers are finding that gift cards make it easier to stay on track financially. More than three-quarters (77%) of respondents say sticking to a budget is easier when using gift cards. Gen X (83%) and millennials (82%) are leading this adoption, pointing to growing generational momentum behind this trend.

To support their financial planning, consumers are proactively buying gift cards for everyday spending categories. Coffee shops (58%), department stores (46%), discount retailers (41%) and digital subscriptions (36%) are among the most common selections. By using cards in this way, shoppers can simplify their budgets while still enjoying nonessential purchases in a controlled manner.

Merchants can build loyalty through budgeting features

As gift card use expands into personal finance, consumers are looking for tools that help them maximize the benefits. Eighty-three percent of respondents say they are eager for new gift card budgeting features. The most popular options include bonus loyalty points (62%), spend tracking (52%), and balance alerts or reminders (51%).

This represents a significant opportunity for merchants. By integrating loyalty and budgeting tools into gift card offerings, brands can deepen consumer engagement while positioning themselves as partners in financial wellness. These value-added features drive repeat visits and brand trust in an environment where shoppers are more intentional about where they spend.

How financial wellness fuels merchant success

Financial wellness can also boost merchant revenue, with nearly one in four consumers buying gift cards for themselves as a budgeting tool. When gift cards are positioned this way, merchants can increase revenue while offering consumers helpful digital money management options.

In fact, 42% of consumers spend more than the card’s value, and 41% use them to supplement larger purchases. This quick usage and incremental spending make gift cards a practical tool for both financial wellness and business growth.

Digital gift cards help manage inventory and meet expectations

Digital gift cards also benefit retailers by mitigating inventory challenges. Sixty percent of consumers say they have opted for a digital card due to shipping delay concerns, while 54% say they would use one to purchase a product later if their preferred item was out of stock.

Generational trends also play a role: Millennials (59%) and Gen X (55%) are especially likely to choose a digital gift card over an unavailable physical product. For merchants, offering digital alternatives helps ensure continued engagement even when inventory is limited – providing both convenience for customers and operational flexibility for brands.

Gift cards are tools for financial empowerment

The Q4 2025 Gift Card Gauge highlights a shift in consumer perception. No longer just a seasonal gifting option, gift cards are becoming a practical financial tool that supports budgeting, spending control and loyalty-building opportunities.

For merchants, integrating gift cards with digital tools and loyalty programs can create lasting connections with consumers. As shoppers continue to seek financial empowerment, retailers who embrace these trends will be well positioned to meet evolving expectations while driving engagement and growth.

Check out more findings from the Q4 2025 Gift Card Gauge.

Fiserv’s Q4 2025 Gift Card Gauge is a survey of more than 1,000 U.S. consumers aged 18 and older, conducted to help merchants better understand industry trends, and how consumers use gift cards. The margin of error for this Gauge is +/- 3%.