ARTICLE
MAY 12 2025
Our Gift Card Gauge reveals they’re not just for payment anymore.
Gift cards have come a long way in the past 30 years, becoming ubiquitous with big-box retailers and small businesses alike – not to mention their increasing popularity with consumers. As consumers increasingly pay digitally for everything from daily purchases to bills, the versatility of gift cards is apparent as they expand beyond their monetary value.
The Q2 2025 Gift Card Gauge from Fiserv examines how merchants can capitalize on gift cards’ growing capabilities by integrating them with loyalty programs and the emerging digital environment – offering consumers enhanced security, convenient payments, personalized service and meaningful brand interactions.
Customization is key to consumer loyalty
Conducted in February 2025, the Q2 Gift Card Gauge found nearly 70% of consumers received a personalized loyalty reward in the past 12 months. While this growing interaction with customized offers shows promise, 40% of respondents are still neutral about how customized the retail marketplace is to their purchasing patterns.
Further, one-quarter of those who have received these personalized offers are neutral about how these promotions align with their specific shopping needs and habits. This suggests that while customized offers have potential, there’s still room for improvement in their relevance and appeal.
Knowing this, merchants should consider offering rewards that resonate with frequent buyers – such as discounts for frequently purchased items or brands (endorsed by 55% of survey respondents), a free gift for a frequently purchased item or brand (40%), or a gift card for a retailer they frequently shop at (34%) to demonstrate appreciation to loyalty members and incentivize consumers to return for more deals.
The cyclical loyalty program and gift card relationship
Gift cards are a great way to get new consumers through the brick-and-mortar or digital door, and a first step toward converting them into loyal brand advocates.
The survey revealed that consumers are more apt to join the rewards program for where they receive gift cards by 66%, while 61% of loyalty program participants are more likely to purchase gift cards from retailers where they are loyalty members versus where they are not. This shows gift cards can be leveraged to entice current loyalty members to recruit new loyalty program participants, which, in turn, drives merchant growth.
Because consumers ranked savings (78%), rewards programs (72%), and frequency visiting the retailer (45%) as the top reasons for joining loyalty programs, merchants would be wise to prompt consumers to join theirs by offering meaningful ways to save money.
Digital wallets offer convenient entry to loyalty perks
The top features consumers want in digital wallets are ease of use (65%), security (59%), the ability to store multiple cards in one place (55%), and rewards or cashback integration (48%).
However, consumers are using digital wallets for more than safe and easy payment storage: they leverage them to store everything from loyalty cards and hotel reservations to coupons and events tickets. In fact, more than half of consumers use digital wallets to store their gift cards, leaving the remaining 49% of respondents with untapped loyalty benefits on the table.
By offering digital wallet-specific incentives, merchants can help persuade consumers to integrate this hassle-free payment method into their payment routines, which increases their loyalty transactions.
Bring on bundled gift card options
Bundled gift card experiences are piquing consumer interest, whether that includes pairing gift cards for streaming and food delivery services, massage and skincare/beauty stores, outdoor gear stores and activities or any other enticing combination that creates an experience.
Six in 10 consumers would be interested or highly interested in bundled gift cards if they could be stored in their digital wallets, while 64% would like bundled experiences as loyalty program reward options. Retailers can satisfy those who seek customized customer journeys through these packaged gift card experiences, delivering greater savings and gift card personalization when layering loyalty and digital wallet features.
As the gift card marketplace continues to progress, merchants must adapt to consumers’ increasing desire for seamless, personalized experiences. Leaning into these integrations will appeal to consumers’ interests in streamlining gift card purchases and potentially increase their loyalty spends.
Check out more findings from the Q2 2025 Gift Card Gauge and connect with us at GiftSolutions@Fiserv.com.
Fiserv’s Q2 2025 Gift Card Gauge is a survey of over 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%.