8 Reasons Digital Gift Cards Need to be  Mobile-First

Key Takeaway: By using a mobile approach to gift cards, restaurant operators:

• Improve the guest experience

• Boost sales

• Get ready for future growth 

While physical gift cards currently outpace digital gift cards by a two-to-one margin across generations, the digital group is growing:

People across generations buy twice as many physical gift cards as digital ones,  
according to Bank of America research. 

Bank of America says that digital gift cards have more value than the plastic versions. In 2023, the average digital gift card had $83.95, compared to $63.86 for physical cards. So, the monetary gap is only 34%:

According to Bank of America, digital gift cards hold more value than physical gift cards, except those given to a significant other. 

As younger people get more purchasing power and as smartphone tech keeps growing, digital gift cards will get more popular. That's why restaurants should be thinking about it now. 

In this article, we’ll explore why digital gift cards are important for restaurants and how they benefit your business.

1. Customer Experience Improvement 

 Customers expect to use their mobiles in restaurants. This means a mobile gift card system is a must-have. 

This gives you access to a bigger audience who likes to pay by mobile. Digital gift cards are an extension of that. 

Mobile gift cards should be added to your restaurant’s: 

• App

• Loyalty program 

• Online ordering system 

2. Getting Impulse Purchases

Mobile gift cards get more impulse purchases. Blackhawk Network says that last-minute buyers are young: 40% of gift card purchases by GenZers are unplanned vs. 19% for Boomers.

Source: Blackhawk Network: 2024 Could be a Shockingly Normal Year for Gift Cards 

Easy taps go with the nature of gift-giving. A guest might remember a friend’s birthday while scrolling through social media. With a mobile gift card system, they can purchase a gift card from you with their phone. 

Mobile gift cards create significant sales and visits. Here is an example. A customer gets an email offering a $20 bonus card for every $100 gift card purchased. While driving home hungry, they spot your restaurant, get your offer via mobile, and stop in for a meal. 

3. The Reload Revolution

Mobile gift cards are easy to use and can be reloaded. This helps get more repeat visits and creates customer loyalty. 

A trend we’re seeing among major coffee chains is something called gift card balance reloading. This makes sure guests always have funds for their next visit. It also gets the cafe more prepaid sales. 

4. Digital Wallet 

Mobile gift cards can be used with digital wallets like Apple Pay and Google Pay. This allows them to store and access it for QR code scans. 

Adding gift cards to digital wallets offers: 

1. Increased visibility: Gift cards appear with other payment methods. 
2. Convenience: Customers can easily use their gift cards without carrying physical cards. 
3. Security: Digital wallets offer advanced security features. 

5. Targeted Marketing

Mobile gift cards allow for new marketing. Push notifications can:

• Alert guests about their gift card balances  

• Highlight promos 

• Encourage card usage

Location services can send reminders when guests with active gift card balances are near your restaurants. 

Digital gift cards also help people become loyal customers. Digital versions provide customer data, including email addresses. 

The key is inviting digital gift recipients to sign up. For example, when a gift card is redeemed for the first time, you can say: “Enjoyed your gift? Join our loyalty program now and get 10% off your next visit!” 

This turns a gift into a long-time customer. 

6. Data Insights

Mobile gift cards provide data on customer behaviors. Use this information to create personal promos. 

Checking gift card purchase patterns can show popular gifting occasions. These insights into customer spending with gift cards can help you with menus and prices. 

7. Reducing Costs

Digital gift cards reduce costs associated with physical card production. Automated gift cards make it easier for your staff and give them more time to work on other projects. 

8. Sustainable Options 

People care about the environment. Mobile gift cards help with that mission. By reducing plastic, you appeal to the 56% of restaurant consumers who prefer establishments that don’t use single-use plastic. 

This improves your brand perception and loyalty, particularly among younger people. Blue Yonder’s third annual Consumer Sustainability Survey says 85% of Gen Z and 84% of Millennials say sustainability is important. 

Why Now is the Time to Act 

Mobile gift cards reduce gift card tax work and boost your restaurant’s profits. By using mobile gift cards, you:

• Improve the customer experience

• Increase sales

• Streamline operations

• Get ready for future growth

To learn how Paytronix can help, contact us today for a personalized demo.