You must have heard or seen people talk about buying or using gift cards, and you may wonder what they use them for.
Gift cards or gift vouchers are one of the biggest inventions of financial technology in this modern time. Before the invention and adoption of point of sales (POS) for store transactions, cash payments have been the primary payment method.
You will agree that cash payments are highly flawed and always expose people to significant risks like loss of cash, robbery, theft and the inconvenience of carrying money around.
This day, people can move around with a considerable amount of money stored in a digital or plastic card called a gift card.
The use of gift cards is beneficial to both business owners and customers. If not, we wouldn’t record this massive adoption of gift cards worldwide.
Unlike most famous opinions, which suggest that gift vouchers are meant for making store transactions, there are many other things gift cards are used for.
In this article, we will discuss the meaning of gift cards extensively, what gift cards are used for, and the benefits of using gift cards.
What Are Gift Cards?
Gift cards are vouchers preloaded with a certain amount of money or credits that can be used to make store purchases. When the gift certificate is redeemed in the store, the monetary value can be used to purchase any item.
There are two major gift cards: a physical gift voucher and a virtual gift voucher(e-codes).
Both physical and virtual gift cards are the same and have the same value; the only difference is their format.
The physical gift card is often delivered to a user’s mailbox, while the virtual gift voucher is sent to his email.
There are many gift cards today that you can choose from if you want to purchase a gift card. Some of the most popular gift cards in the world are Amazon cards, iTunes cards, Steam wallet cards, Sephora cards, Google Play cards and many others.
Gift cards are issued in different monetary denominations so everyone can afford one.
The primary monetary denominations you can get a gift card are $5, $10, $25, $50, $100, $200 and $500. However, you can get customised gift cards for any design and amount you want.
What Are Gift Cards Used For?
Remember that gift cards represent money stored in a voucher that can be used to make every transaction in a store.
When you think of what gift cards can be used for, you will have to think of what money can be used to do. However, we can’t be wrong to say that gift vouchers offer more value than cash. Here are some of the uses of gift cards.
1. Purchase Store Goods And Services:
The primary use of gift certificates is to make store purchases of goods and services when the card is redeemed in the store.
Many businesses have created gift cards to aid customers in making seamless transactions in their stores.
2. Use As a Gift Item:
Gift cards can be the best gift you can ever think of giving to a loved one, a friend or an employee.
Since gift cards represent a specific monetary value which can be redeemed in a store to purchase goods and services, it is best to give out gift cards as gifts.
Looking for the perfect gift item to give someone can be stressful and rigorous. You may not know their desire at such time; hence, giving them a gift item will allow them to make that choice while saving themselves the stress too.
3. Trade Gift Card For Cash or Cryptocurrency:
Do you know you can convert gift cards for cash or cryptocurrency when you are no more in need of them?
Gift cards are digital assets whose value depends on market demand and supply, like other assets.
This means that the rate of gift cards is never fixed. It fluctuates with time.
You can also trade gift cards you purchased at a low rate for cash or crypto when the rates are pretty high.
Benefits Of Using Gift Cards
There are many benefits of using gift cards for you as a user and for the business or store where the gift vouchers are used. We will discuss some of the benefits of gift certificates in general.
Gift certificates offer users an exceptional convenience over cash payments or bank cards. Paying for your items with gift cards makes you comfortable knowing that your payment is secure and verifiable by the store.
If you are a careless spender who spends without a budget, then gift cards are a sure way to help you budget your spending.
The credit on your gift card is limited to a certain amount; when exhausted, your spending power is also finished.
It will be in your best interest to buy a gift card for the amount you want to spend.
3. Increase Sales Revenue:
Gift cards help businesses increase their sales revenue as people buy gift vouchers for their loved ones and families returning to the store to redeem their gift items. The more people buy the gift vouchers, the more sales revenue it will bring to the store.
4. Create Brand Awareness:
When a business issues gift cards to its customers, the brand’s logo and information are on the card. The more gift cards are exchanged among people through gifts, the brand gains recognition from new potential customers who are likely to patronise the brand.
The article mentions that gift cards are great and valuable for store transactions. They also have some other use cases besides buying store items.
The benefits of gift cards can never be overemphasised in today’s world. This is why the gift card industry is a multi-billion industry.