Top 3 trends shaping the future of gift cards
By Tremendous Insights Team●4 min. read●Apr 7, 2026
With nearly 1 in 5 U.S. consumers buying at least one gift card in the last six months, their popularity is unquestionable. They’re a meaningful way for businesses to show appreciation and reward high-value actions. For that reason, they’ve become a cornerstone of leading brands’ reward and incentive programs.
From survey and focus group participant incentives to marketing promos to employee recognition programs to legal and charity disbursements, gift cards are easy and secure to send – and exciting for consumers to spend.
The typical gift card buyer skews older, more affluent, and more likely to be female. But there’s more to the story. As younger generations enter the workforce and digital redemption options transform what was once a singular, offline transaction into an omni-channel experience, there’s an opportunity to drive greater value from reward and incentive programs by tailoring gift card options to your audience’s preferences and behaviors.
New data from Visa’s MRI Simmons USA 2025 Fall study reveals nuances about who’s redeeming gift cards, where, and why. Learn why your strategy should move beyond a one-card-fits-all approach in 2026.
Trend 1: Big brands have broad appeal while regional preferences signal opportunity
National brands like Amazon.com and Visa top the charts at 42% and 34% of gift card purchases: not surprising given their scale and flexibility. Restaurants, coffee shops, and department stores are also top consumer picks.
While big brands have mass appeal and are good options for reaching broad or unfamiliar audiences, regional retailers also show up within the top 5 slots in each region. Some regional favorites:
CVS is favored on both coasts
Dunkin’ Donuts leads the Northeast
Taco Bell is a fan favorite in the Southeast
Kroger is popular in the South
Domino’s is a top choice in the Midwest
Layering these regional favorites into your reward options and planning can provide added value and
appeal to recipients participating in national programs.
Trend 2: Younger generations are changing the sending and spending game
Millennials and Gen Z are changing the way gift cards are purchased and redeemed. Younger consumers prefer faster, more flexible, and more digital options. They’re approaching gift cards through an online-first, mobile-friendly lens, creating opportunities to simplify redemption and expand omnichannel experiences.
Over two-thirds of Millennial and Gen Z gift card transactions are online
Offering digital gift card options not only aligns with younger audiences’ preferences but can also be a powerful business advantage. Your team can eliminate production and shipping costs while enabling instant delivery.
Younger generations are redeeming gift cards at a much faster pace
With Gen Z twice as likely to redeem a gift card within the first month as Boomers, there’s a clear shift in redemption speed and desire for instant gratification. Offering fast delivery and easy-to-redeem options can increase perceived reward value with younger consumers.
Prepaid card flexibility is increasingly appealing
Younger generations show a greater affinity for the flexibility of prepaid cards like Visa. While prepaid cards account for only 1% of gift card transactions among Boomers, they make up 16% of total gift card transactions among Millennials and 25% among Gen Z.
As these younger audiences become an increasingly important recipient segment for reward and incentive programs, adapting gift card experiences to prioritize speed, ease, and flexibility supports seamless redemption.
Trend 3: Older generations still hold purchasing power – and value
Gen X and Boomers remain the biggest drivers of both spend volume and frequency: 62% purchased more than 3 gift cards and 63% spent more than $100 on gift cards in the past 6 months. While younger generations may be changing the game for future purchasing trends, older generations are still the largest and most active buyers today.
In contrast to the digital-first mindset of the younger generations, 55% of Boomers redeem gift cards in-store.
When crafting redemption journeys, don’t discount the brick-and-mortar setting. Instead, plan for a smooth in-store redemption process while scaling digital channels for younger consumers.
Use these trends to optimize your reward and incentive programs
The data is clear: gift card purchase and redemption trends are evolving, and preferences vary by recipient demographics and location. To maximize the value of the gift cards you’re sending for your company’s reward and incentive programs:
Customize gift card options by geography, generation, and channel to make sure your incentives align with consumer preferences
Make redemption as seamless as possible for both online and in-store shoppers
Focus on redemption flexibility by offering prepaid options in addition to retailer-specific cards
