The Global Rise of Digital Gift Cards: UAE and US Leading the Way
Gifting has long been a cherished tradition for birthdays, religious holidays, and special occasions. With the advent of technology and the growth of the digital economy, it is now possible to send gifts worldwide, according to Tom Bleach, The Fintech Times. This development raises questions about the future of gifting and its impact on cross-cultural ties.
The United Arab Emirates (UAE) has experienced a surge in cross-border gifting, with 140 countries actively participating in sending gifts to the region. Among the top gifting nations to UAE residents are the UK, USA, Saudi Arabia, and India.
YOUGotaGift, a digital gift card marketplace based in the Middle East and North Africa (MENA) region, has released new findings that shed light on the growing interconnectedness and cross-cultural ties driving the growth of cross-border gifting.
Gift cards have gained popularity as a way to express gratitude to friends, family, and colleagues. The Christmas season has emerged as the most popular time for gifting in the UAE, reflecting the region’s cultural diversity. The most sought-after cross-border gift cards sent to the UAE include those for hypermarkets, online stores, malls, and games.
Husain Makiya, co-founder and CEO of YOUGotaGift, discusses the evolution of gifting and the advantages of digital gift cards: «Digital gift cards have seamlessly found their place in the dynamically-evolving interconnected world. In today’s globalized society, where people are increasingly dispersed and working remotely, traditional gifting methods such as physical gift cards sent by mail are no longer practical or reliable.»
Makiya emphasizes the convenience and sustainability of digital gift cards. They can be instantly sent to recipients anywhere in the world, eliminating concerns about loss or damage during shipping. Furthermore, digital gift cards reduce paper and plastic waste and can be easily redeemed online or in-store according to consumer preference.
The growth of digital gift cards extends beyond the UAE. Blackhawk Network, a global payments provider, recently expanded its partnership with European payments company Recharge.com to distribute gift cards digitally through Blackhawk’s network in the US and Canada.
Steve Dekker, managing director in the Americas for Blackhawk Network, highlights the importance of cross-border gifting and the rise of e-commerce: «Gift and prepaid cards have become staples in the lives of consumers around the world, connecting shoppers with their favorite brands and enabling them to celebrate meaningful occasions with loved ones. With the increasing globalization and preference for e-gifts and online purchases, enabling cross-border gifting is more crucial than ever.»
Dekker notes the double-digit growth in e-gift and e-commerce sales of gift cards during the recent holiday season based on consumer research and their own sales data.
As the global growth of digital gift cards continues, the UAE and the US are at the forefront of this trend. Interconnectivity and cross-cultural ties drive cross-border gifting, facilitated by the convenience and sustainability of digital gift cards. With their instant delivery and versatile redemption options, digital gift cards are shaping the future of gifting in an interconnected world.