Consumers are spending more cautiously but more strategically. As inflation, rising debt, and economic uncertainty pressure household budgets, shoppers are becoming intentional about every purchase. This focus on value and flexibility is fueling interest in prepaid products, with gift cards no longer reserved for holidays but increasingly used for loyalty rewards, personal budgeting, and everyday spending. BHN’s 2026 Global Spring Gifting Research reveals that gift cards are rising in strategic importance, and merchants must adopt omnichannel, AI-aware approaches to capture the opportunity.

Generational Shifts and Self-Use Growth

Younger consumers are leading the pivot: 72% of Gen Z and millennial respondents purchased gift cards instead of physical gifts in the past year, versus 38% of older consumers. About 77% of all respondents plan to buy a gift card to give in the coming year, and self-use of gift cards has grown by nearly double digits. For younger shoppers with tighter discretionary budgets, gift cards maximize value, reduce waste, and offer convenience such as earning loyalty points on purchases. This dual gifting and self-use trend creates incremental revenue opportunities for brands.

Technology as a Value Optimization Toolkit

Younger consumers increasingly use artificial intelligence as a shopping assistant—comparing prices, scouring reviews, and combining AI searches with loyalty rewards, deal discovery, and flexible payment into what BHN calls a “value optimization toolkit.” Around 50% of respondents have already purchased gift cards during social streaming events, and nearly 7 in 10 express interest in doing so in the future. Delivery channels are expanding beyond email to social media and text, especially among younger demographics. Merchants must ensure their gift cards are discoverable in AI-generated recommendations and social commerce contexts to remain competitive.

The Enduring Role of Physical and Omnichannel Integration

Despite digital growth, roughly half of consumers still prefer physical gift cards. Digital and physical are complementary forces, not opposing ones. Consumers expect to purchase and redeem gift cards seamlessly across in-store, online, mobile wallet, and social channels. An omnichannel strategy that integrates physical and digital experiences—including delivery via text, social platforms, and digital wallets—is essential to meet shopper expectations and maximize gift-card ROI.

Loyalty Programs and Behavioral Returns

Approximately 92% of survey respondents participate in loyalty programs, and gift cards remain one of the most popular redemption options. Self-use of prepaid products strengthens customer relationships and drives repeat engagement. Gift card redeemers consistently visit stores more often, spend above the card’s value, and purchase higher-ticket items. This positive behavior loop encourages recipients to buy more cards for themselves and others, creating a self-fulfilling cycle of engagement, retention, and incremental revenue for merchants.

Strategic Imperatives for Merchants

To capture value, merchants must meet consumers where they shop: in stores, online, within loyalty ecosystems, and across social and AI-driven channels. Building AI-friendly brand presence, offering flexible delivery options, and integrating gift cards into loyalty programs are critical. As economic pressures persist, gift cards transition from a nice-to-have to a strategic advantage for engagement, retention, and incremental revenue. Brands that embrace omnichannel flexibility and visibility in emerging technologies will be best positioned to thrive.

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