Industry executives and experts share their predictions for 2025. Read them in this 17th annual VMblog.com series exclusive.
By Tony Karp, North America CEO, Prezzee
Imagine a world where every holiday, birthday, or thank-you gesture comes without the plastic waste, lost cards, or fear of fraud. In 2025, that world could become reality. Next year, we predict that the convenience, the sustainability, and the security of digital gift cards are set to make plastic cards a relic of the past.
From saving millions of tons of plastic waste to revolutionizing the way we manage corporate gifting and personal security — digital gift cards are ready to become more than just a convenient alternative-they’re the future of gifting. Here are 5 reasons why 2025 is the year digital becomes the norm and plastic takes a permanent back seat.
1. Sustainability: Plastic gift cards, though convenient, contribute to the millions of tons of plastic waste generated each year. They’re often used once, only to sit in landfills for centuries. Digital gift cards, by contrast, offer a convenient, eco-friendly alternative that resonates with consumers and brands alike. The shift to digital means no more plastic waste, no more production and shipping emissions, and no need for packaging materials.
As consumers become increasingly aware of the environmental impact of their purchases, many are looking for ways to make more sustainable choices. Sustainable shopping, upcycling and thrifting have all become “normalized.” Now, by opting for digital gift cards, this too will contribute to waste reduction without sacrificing convenience. The shift is also aligned with many brands’ sustainability goals, making digital gift cards a win-win for everyone involved.
2. Security: Plastic gift cards come with inherent risks, from theft and loss to tampering. A misplaced physical card is often lost for good, leaving consumers with no recourse. Digital gift cards, on the other hand, offer a far more secure experience. They’re stored in secure mobile apps or email, protected by encryption, and can even include two-factor authentication. Many digital platforms also offer real-time tracking and notifications, enabling users to monitor transactions and detect fraudulent activity quickly.
This added layer of security has made digital gift cards an attractive option for consumers wary of traditional gift cards’ vulnerabilities. In 2025, as data privacy and security continue to be top-of-mind, digital gift cards will become the preferred choice for a safer and more secure gifting experience.
3. Retail Insights: For retailers, digital gift cards offer not just sustainability and security, but also a range of operational and financial benefits. Producing plastic cards involves costs for manufacturing, packaging, and shipping, all of which digital gift cards eliminate. Lower overhead means retailers can pass on savings to customers or offer promotions without sacrificing profit margins.
Additionally, digital gift cards allow retailers to tap into valuable customer insights. Digital gift cards can also be easily integrated into loyalty programs and tracked, providing data on purchase patterns, redemption rates, and customer preferences. This data can then be used to create targeted marketing campaigns and personalized offers, ultimately driving customer loyalty and increasing revenue.
4. Corporate Efficiency: The corporate sector is also embracing digital gift cards, especially as a tool for budgeting, expense management, and employee rewards. Digital gift cards can be issued instantly, eliminating delays associated with mailing physical cards and ensuring employees have access to funds when they need them. This is especially useful for budgeting corporate expenses, where digital gift cards can be allocated to specific vendors or purposes, helping companies stay within budget.
For finance teams, digital gift cards bring enhanced oversight and control. They enable real-time tracking of expenses, allowing companies to spot unusual spending immediately and improve overall budget management. Additionally, digital gift cards reduce administrative burdens by streamlining reimbursement processes, allowing companies to issue funds upfront and simplify expense tracking.
5. Personalization: Personalization has become a major trend in consumer behavior, as people increasingly expect tailored experiences that reflect their preferences, values, and interests. Digital gift cards are particularly well-suited to meet these expectations. Unlike traditional plastic gift cards, some digital versions can be customized in various ways, such as by allowing customers to select unique designs, add personal messages, and even include multimedia elements like photos or videos. By enabling more thoughtful and customized gifting, digital gift cards help create a memorable experience for the recipient and strengthen the emotional connection between consumers and brands. This personalized approach makes gift-giving feel less transactional and more like a tailored expression, which resonates with today’s consumers.
A Tipping Point for Digital Gifting
Digital gift cards are quickly becoming the obvious choice for consumers, retailers, and businesses. As we move into 2025, the demand for digital gift cards will continue to rise, driven by a shift toward more sustainable, secure, and convenient gifting options.
Plastic gift cards are on their way out, and digital gift cards are here to stay. We predict that next year, digital gifting will become the standard, not just a trend — and plastic cards become a relic of the past.
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ABOUT THE AUTHOR
Tony has been instrumental in Prezzee’s rapid growth in Australia and its expansion into North America, the UK and New Zealand over the years. In his current role, Tony oversees all business operations and revenue for the U.S. with the goal of furthering the company’s position as a leading digital gifting brand.
