Analysis of 100 U.S. Merchants Digital Gift Card Programs
The 2025 BHN-NAPCO Digital Gift Card Programs Report offers a comprehensive analysis of 100 U.S. merchants’ branded digital gift card programs. It evaluates both the purchaser and recipient experiences using 126 distinct criteria. The report provides actionable recommendations, industry benchmarks, and emphasizes innovative features that merchants can adopt to improve their gift card offerings.
**Key Findings**
The U.S. gift card market is growing, with a projected compound annual growth rate (CAGR) of 6% from 2023 to 2028, aiming to reach $267.3 billion by 2028. Digital gift cards are outpacing physical cards, forecasting a CAGR of 8% and expected to account for nearly 43% of all gift card spending by 2028. Notably, in 2024, gift cards ranked as the most requested holiday gift for the 18th consecutive year.
**Methodology and Scoring**
This report evaluated 100 digital gift card programs from merchants across 17 product categories, using criteria that include discoverability, purchase flexibility, delivery options, payment support, post-purchase experience, recipient experience, B2B capabilities, marketing, customer service, and innovation. Scoring was adjusted annually to reflect changing consumer expectations. Evaluations involved end-to-end testing of the purchasing and recipient processes across desktop, mobile web, and app platforms.
Top composite average scores were as follows: Desktop 78, Mobile App 50, Mobile Web 78, and Device Agnostic 63. The average composite score has improved over previous years, indicating advancements in the industry.
**Top Performers and Industry Verticals**
The highest-ranked merchants for digital gift card experiences were Staples, Amazon.com, Best Buy, Sephora, and Target, each excelling across digital channels. Among the industry categories, Consumer Electronics & Office Stores and Health & Beauty received the highest composite scores, while sectors like Quick-Serve Restaurants and Fashion lagged behind.
Leading programs stood out for their strong app experiences, seamless checkout, rapid digital delivery (with SMS averaging 5 minutes and email 22 minutes), and flexible payment and delivery options.
**Actionable Insights**
Top programs excel at making gift cards easy to find and purchase through optimized website and app experiences. They promote various purchase options, personalization, and payment methods, including mobile wallets. The best programs enhance both the purchaser and recipient journey with branded interfaces, instant digital fulfillment, easy balance checking, secure delivery, and mobile wallet integration.
Merchants that leverage promotions, integrate loyalty programs, and maintain year-round marketing efforts outperform their peers. Additionally, many brands have underutilized opportunities in social media and search engine optimization.
Innovative features include using AI for gifting recommendations, promoting eco-friendly eGift cards, and enabling purchases through various digital channels.
**Recommendations**
Merchants should streamline gift card discoverability and checkout processes, offer flexible purchase and delivery options, market gift cards across both digital and physical channels, and emphasize eco-friendliness.
Utilizing B2B and bulk ordering, promoting through social media, integrating loyalty programs, and adopting AI-driven personalization represent key growth opportunities. Providing responsive customer support and clear redemption instructions is essential for ensuring customer satisfaction and repeat business.
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