How to create gift cards in your POS and use them to boost sales

Gift cards are big business. By 2027, the digital gift card market is expected to be 2,076.51 trillion.

Your customers can share their love of your brand by purchasing gift cards. These prepaid cards can be used by your customers to purchase products from your store in person or online.

Although gift cards aren’t new, they’re an important way to expand your retail business. Gift cards are loved by customers because they allow them to shop at your store as they wish.

Additionally, 42% consumers report spending more on gift cards than they would normally. Gift card programs can result in higher average order value and more sales.

Get in on the action! This guide will help you understand the benefits of gift certificates, how they can be processed in your business, as well as tips and tricks for creating a gift card program that is successful.

Accepting gift cards as payments has many benefits

Revenue growth

While gift cards can bring in revenue when purchased, they also have the potential to generate additional revenue when redeemed. This is why Amazon, Macy’s and Macy’s as well as Lowe’s and Best Buy all include gift cards in their sales strategies.

Because they perceive the gift card as “free money”, shoppers who have gift cards are more likely to buy higher-priced products. Another revenue-generating fact is 61% spend more than the gift card’s value, spending an average of $31.75

Over half of consumers spend more on gift cards than they are worth when they use them.

Find new customers

Gift cards are a great way to promote your business to people who might not otherwise have shopped at your store. Your business will be loved by customers who know you well and purchase gift cards for their friends. This will help to increase your customer base. According to research, 52% have purchased a gift card for someone else within the last 12 months.

Gift cards can be given to people who are asked to donate to local charities. You can give a gift card instead of a product or service. This allows the recipient to spend as much money as they want and open up the possibility for them to enjoy their prize. Gift cards for fundraisers can increase your brand recognition and establish a reputation as a business owner who supports the community.

Research has shown that 52% of people have purchased gift cards to give as gifts in the last 12 months.

Get people to visit your site

You can easily give a gift card online, which saves you a trip to the shop. This is great for last-minute gifts. The recipient receives the card electronically, so they don’t need to carry paper gift cards or certificates.

This trend is growing in popularity. Nearly 40% of consumers prefer digital gifts cards that can be scanned from their phones to physical cards, according research by .


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Customer loyalty can be increased

Promoting gift cards, especially during holidays, is a great way of increasing loyalty among your customers. Customers who buy $100 worth of gift cards can get a $10 gift card for free.

This offer can encourage buyers to spend more, increasing the average gift card sales. The bonus gift cards can be made valid for a limited time after the holidays. This will boost sales in the first quarter (usually slower) of the new year.

READ MORE 8 ways to use gift cards to build customer loyalty

Sales increase after holidays

Holiday season is a time when gift card sales spike, digital and physical. Last-minute gifts are a great option for gift cards. Brands report a 114% rise in gift card sales between November and December 2021.

The fourth quarter is a great time for retailers, but January and February can feel slow. However, gift cards can bring customers to your door during the holiday rush as they use their gift card, increasing your first quarter revenue.

Retailers saw a 114% increase in gift card sales during the holiday season 2021.

Compete with major retailers

Gift cards can seem impersonal. However, if they are from the gift giver’s favorite store it feels more personal. Smaller retailers can offer gift cards that are comparable to or better than large retailers.

Notes from a retailer such as Nordstrom. A gift card can be personalized with the recipient’s name and preferred design. It can be sent digitally or by post, as noted.


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Make sure to let your customers know you offer gift cards so they are aware of you when they are looking for the perfect gift. Place your gift cards near the cash register. Place signage in the store to promote your gift cards to customers as they shop. Include gift card offers in email marketing and social media.

Manage returns with this tool

A gift card is a great way for customers to keep their money in your business if they want to return an item but don’t have a receipt. If a customer wishes to return an item within your regular grace period, this option can be considered. This gives customers something more than a refusal and will likely keep them satisfied, so they’ll return the money later.

Gift cards can be used by retailers to reward employees or customers. As a reward for hard work, give your top salesperson a gift certificate. Or thank your VIP customers with a giftcard. Gift cards can be added to your loyalty program to reward customers who make multiple purchases with your brand.


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