what is gift card use for


Gift cards have redesigned the way we give and receive presents. In today’s fast-paced world, where time is precious and preferences vary, gift cards offer a convenient and flexible solution, becoming a go-to choice for many individuals and businesses.

In this article, we will explore the purpose of gift cards, their benefits, and various uses of gift cards. Stay tuned and pay close attention.

What Are Gift Cards Used For?

The following are the purposes for using gift cards;

Convenient gift-giving option

Gift cards wipe out the guesswork associated with choosing the perfect gift. They allow recipients to select items that align with their personal preferences. It could be  a fashion fan wanting to pick out their attire or a tech-savvy individual searching for the latest gadget. Gift cards offer the flexibility to make personal choices.


Promotional tool for businesses

Gift cards serve as more than just a gift-giving option. For businesses, they are a powerful marketing tool. By offering gift cards, companies can boost customer loyalty, attract new customers, and increase their overall revenue. Additionally, they provide an effective platform for businesses to showcase their brand and products.

Types Of Gift Cards

Gift cards come in various forms to suit different preferences and occasions. They include;

Closed-loop gift cards

A specific retailer or restaurant issues these cards, which can only be redeemed at their locations.

Open-loop gift cards

These cards function like debit or credit cards and can be used at multiple merchants within a specific network example, Visa or Mastercard.

Digital or e-gift cards

These electronic gift cards are delivered via email or mobile apps, allowing for convenient online redemption.

Store-specific gift cards

These gift cards are designed for specific retailers or businesses, offering recipients a focused shopping experience.

Multi-store or mall gift cards

These cards can be used at various stores within a shopping mall or retail complex, providing a wide range of options to recipients.

Benefits of Gift Cards for Consumers

For individuals, the following are the advantages of gift cards;

  • Gift cards offer an extensive range of options. From popular retail stores and restaurants to online marketplaces and subscription services, gift cards cater to various interests. This allows recipients to engage in a personalized gifting experience, choosing items that truly suit their desires.
  • Purchasing a gift card is a hassle-free process, in-store or online. They can be easily obtained and instantly gifted. Moreover, gift cards eliminate recipients’ need to worry about returns or exchanges since they can select their preferred items. Additionally, many gift cards come without expiration dates and fees, providing peace of mind.
  • Gift cards give more security compared to traditional cash or physical gift vouchers. They can be registered or easily canceled if lost or stolen, ensuring the balance remains protected. Furthermore, the rise of digital gift cards and online redemption options adds more security, allowing users to purchase without the risk of physical loss or theft.

Benefits of Gift Cards for Businesses

As a business owner, gift cards are advantageous to you in the following ways;

  • Gift cards increase sales as they are not only a convenient option for consumers but also a lucrative opportunity for businesses. They can drive additional revenue through impulse purchases and upselling opportunities. Furthermore, unused balances on gift cards often result in increased sales when recipients decide to spend more than the card’s initial value.
  • Gift cards also enhance customers’ loyalty. Businesses can achieve this by offering gift cards. Recipients who enjoy their gift card experience are more likely to become repeat customers, leading to long-term relationships. Also, satisfied gift card recipients often share their positive experiences, providing valuable direct advertising for the brand.
  • Gift cards also enable businesses to gather valuable data on consumer behavior and preferences. By tracking gift card purchases and redemption patterns, companies can gain an understanding of customer shopping habits. This information can then be utilized to create marketing campaigns, thereby driving customer engagement and boosting sales.

Tips for Using Gift Card

These tips help maximize the use of your gift cards;

Redeeming the card

To make the most of a gift card, you can research options and plan your purchases. This helps avoid wasteful spending and ensures a good shopping experience.

Checking card balances and expiration dates

It’s crucial to keep track of the gift card balance and know any expiration dates. Many gift cards now offer online or mobile app features to conveniently check balances, making it easier for you to stay informed.

Utilizing online features and mobile apps

With the growing digital landscape, gift card users can enjoy additional benefits by utilizing online features and dedicated mobile apps. These platforms often provide exclusive discounts, personalized recommendations, and easy redemption processes.

Frequently Asked Questions

Is a gift card used in Nigeria?

Yes, gift cards are used in Nigeria as an employee incentive, personal gifting, reward to loyal customers, and business sales booster.

How much is a gift card?

The activation fee depends on the amount added to the card by sampling apps or sites. This fee is between $2.95 and $5.95.


Gift cards have become a valuable item in the world of gift-giving. Their convenience, flexibility, and wide range of uses have made them a popular choice among consumers and businesses alike.

We believe that this article was beneficial to you. Feel free to ask us questions in the comments section. We shall respond swiftly!