In today's digital world, gift cards have managed to secure a place in the younger generation's lives. According to Google Trends, the interest in gift cards has increased over the past few years. Not only do the gift cards serve as a popular way to purchase gifts for your loved ones, but they also provide the recipient with the freedom to buy anything of their choice.
As you might already know that everything has its set of benefits and drawbacks, and it is essential to know them before making the decision to buy it. However, before we dive into the pros and cons of gift cards, let's take an in-depth review of what gift cards are.
So, let’s get to it.
What are gift cards
Putting it simply, a gift card can be defined as an electronic voucher that serves as a prepaid debit card holding a specific amount. Gift cards can be redeemed at the respective stores or while shopping online, and the amount they hold will be added to your account. This amount can then be used to shop for anything that you wish, and you can also make payments at restaurants, etc.
To clarify it, suppose you give a $100 Adidas gift card to anyone you know. The card receiver will have a choice when redeeming the gift card. The person can redeem it when he visits the Adidas store or when shopping from the Adidas site, and a $100 balance will be shown in his amount, which can be used to buy any Adidas product without paying cash.
How are digital gift cards different from physical gift cards
You might not know this, but gift cards come in two forms - digital gift cards and physical gift cards. Among the two, physical gift cards came into existence first and remain to be the most popular kind of gift card. However, as the world is becoming more digital, it is expected that digital gift cards might steal their thunder.
Unlike physical gift cards, digital gift cards don't have a physical form and are unique code numbers that you can redeem at the retail store or online shopping sites. The problem with digital gift cards, however, is that they might not be replaced if they get stolen or lost. But to see the other side, physical gift cards might not be accepted during online shopping.
That said, before deciding between the two, you need to weigh their pros and cons and know which one works the best for you, so your purchase doesn’t go to waste.
What are the pros and cons of using gift cards
With gift cards becoming increasingly popular daily, many people often question their utility. Therefore, listed down below are some of the pros and cons of using them.
Pros of using gift cards
Easier to send with freedom of shopping
If your loved ones don’t live with you and live far away, sending them a gift would be a difficult and frustrating job. However, things are different when it comes to gift cards.
Not only are gift cards easy to purchase and send, but they offer a lot more than any other old-school gift does. They provide the recipient with the freedom to choose and purchase anything they love from that particular store to which the gift card is sent.
Option to buy with cryptocurrency
Suppose you're one of the crypto enthusiasts and wish to spend the cryptocurrency you have, this one's for you. You might not know this yet, but you can purchase gift cards of almost all popular brands using your crypto wallet.
Suppose you visit a restaurant and wish to pay using cryptocurrency. You can purchase the gift card of that restaurant from sites like Coingate and use it to pay for your food.
Can be purchased in any amount
Gift cards tend to come with a pre-loaded amount. This amount can be as low as $5, as high as $5000, or even more. Therefore, you can have increased flexibility and ease as you will be able to purchase a great gift as per the amount you can afford.
Cons of using gift cards
May look like a lazy gift
Special events call for special efforts, don't they? If you’re purchasing a gift card with the intention of giving it to someone close to you on their birthday or any other special event, it may come off as a thoughtless or lazy gift since it is easy to purchase and send.
Just because you've bought a gift card doesn't mean that it will be worth that amount for the rest of your life. Gift cards tend to have an expiry date, and if they are not redeemed by that date, they may go to waste as there is no option to refund them.
Despite the flaws that gift cards may have, they are increasing in demand and are here to stay. They may not be as thoughtful as a wrapped box that has a watch, but they provide the recipient with the freedom to choose their gift as per their preference.