June 24, 2024

Why are gift cards better than Cash?

Gone are the days when people just used to send money or gift items to their friends, relatives, and even to the workplace colleagues and employees. Today, more people are choosing to send gift cards because they come with a great set of advantages over money and gift items. According to the United States Gift Card and Incentive Report 2021, the gift card industry in the United States is expected to grow at a rate of 9.7%. This growth rate will make the country’s gift card industry reach 170784.8 million USD in 2021.

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The craze of gift cards is increasing since their introduction in the market. In 2006, gift cards were the second most popular option for people to gift someone. Every day, more and more companies are introducing gift cards to their users. The websites are even introducing ways with which the users can earn gift cards and use them to buy something for themselves or send them to someone else. Various e-commerce websites, like Amazon, are selling gift cards online that can help people to send their loved ones instead of money.

Cash is a good form of gift which people can use at their own will. But nowadays, when people are depending on the internet to buy almost anything, gift cards have become a great medium for people to buy what they want online. Almost everyone pays for their e-shopping through online payment options, this makes gift cards a more rational thing to gift someone because they are definitely going to use them. Moreover, the people to whom you’re giving gifts will have the convenience to buy things from their favorite brand and the exact item which they want.

Here is a list of reasons that will tell you why gift cards are better than cash.

Bigger Discount

Gift cards provide you with greater discount offers than you can receive during the cash payments. How will that happen? Let’s create a scenario. Suppose you have a gift card that is worth $50. Now say a sale is going on Amazon and you find a perfect pair of shoes for yourself. Moreover, because of the sale, the prices of the shoes have been dropped from the original $100 to a discounted price of $80. Now, you also have a gift card of $50 that you can use here. So your perfect shoes with the original price of $100 would cost you only $30. Isn’t it a sweet deal for you? Not only on Amazon, but you can also pair up this gift card with the gift cards of other e-commerce websites to earn a bigger discount.

More personal than cash

Generic gifts do not create a warm feeling in our hearts as the personalized gifts do. Unlike giving cash as a gift to someone, for which you don’t put any thought, gift cards can be personalized based upon the need of the person or what she/he likes or dislikes. This shows that you have put much thought into the gift and it creates a warm feeling of love in the heart of the person you’re gifting to.

There are a plethora of categories from which you can choose the gift card. From food to clothes, accessories to home décor, and video games to live stream, there are hundreds of categories for you to choose your gift from. You can also make the gift cards more personalized by adding designs, graphics, personalized texts, and other cool images. You can personalize the gift cards in any way that you want or in the way with which the person to whom you are sending it to would love. It’s a great way to show someone how much you love them and what they mean to you.

More Memorable than Cash

What is more memorable to you? Is it the cash that you get a gift or is it the gift that you can use according to your choice? Probably it is the gift card that you’re going to remember because you will definitely buy something useful for yourself after considering the things available on the e-commerce website. These personalized gift cards also look good in appearance and you can spend them anywhere you want.

Another thing that makes the gift cards more memorable than cash is that you will buy the things that the card is associated with. You can’t go to buy groceries with the gift card that is made up to buy only electronic items. Sure buying groceries with the received cash can be memorable but there’s no match with the gift cards. The things that you’ll buy with the gift card will remain around you for a long period of time and you’ll smile and remember the person who has given the gift card to you with the help of which you bought it.

The benefit of guilt-free spending

Sometimes you open an e-commerce website and see the prices of the things that you’re looking to buy and then close down the window because you can’t spend that much money on that thing. Or maybe you buy that item, but after that, you go on a guilt trip regretting all the money you spent. But how lucky you would feel if you have a gift card that you can use to buy that item. Maybe it won’t cover the entire amount of the item, but still, if it can cover half of the amount, it will be a very good deal for you. Another thing about gift cards is that you can’t convert them into cash. So, you are not going to feel any guilt after buying less important but useful things instead of other things that you should have bought.

A great way to give Incentives

Among the many things that give us motivation, like appreciation by someone or fear of failure, incentives also play an important role in keeping us focused on our goals because we know that we are getting returns from our hard work. Whether you give gift cards to your children for performing well in academics or you give them to your employees to achieve that target, incentives received from gift cards will encourage everybody to perform well in their respective areas. Cash does not seem more useful against gift cards. If you give your employees cash, maybe they won’t buy something from it and deposit the money in their bank account. But if you give them gift cards, then they definitely would buy something meaningful with the incentive they have received.


So now you know why gift cards are a way better option to give someone something than cash. It is a more attractive, memorable, personalized, and thoughtful gift than cash. People feel good when they receive gift cards because it gives them the warm feeling that the sender was thinking about their likes and dislikes.

These gift cards give us an open way to buy something useful and meaningful instead of just putting the money into our drawer because most of the time we end up spending that money on unwanted expenditure. Also, there are hundreds of varieties available in gift cards that you can choose from, like clothes, electronic items, books, and even vacation trips.

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