Blackhawk Network shares 2025 gift card trends – and how retailers can benefit

Excited shopper looks at gift card balance on phone
Gift cards are also emerging as a solution for Aussie consumers to stay on trend in 2025. (Source: Supplied.)

As Australia turns the corner into 2025, the gift card industry is undergoing a remarkable transformation, reshaping how Australians celebrate special moments and navigate their budgets.

This shift is occurring against a backdrop of economic challenges and changing consumer behaviours, making gift cards an increasingly vital tool for both consumers and retailers. 

Blackhawk Network (BHN) senior director retail for Australia Kieran Nolan shares his predictions for the consumer trends retailers can expect to see this year, and the ever-evolving role gift cards have in the daily life of Australians. 

Planning the ‘treat me’ moments

The Australian gift card industry is experiencing substantial growth with the total gift card market value expected to reach US$10.1 billion in 2028, up from $4.8 billion in 2020. This growth reflects new consumer behaviours, with gift cards becoming an integral part of daily life for Australians. 

In the coming year, we expect to see gift cards further integrated with Australian spending habits, particularly as cost-of-living pressures persist. BHN research shows that gift card purchases are no longer an impulse or last-minute buy, with 68 per cent of sales planned ahead with purchasers knowing when they want to share or spend their gift cards before selection. We predict that in 2025, this figure is going to increase. 

Australians are likely to become savvier in budgeting for treats, special occasions and milestone celebrations by purchasing gift cards in advance, ensuring they can treat themselves or others at an opportune moment. This strategy allows for more efficient management of daily expenses while setting aside funds for those essential enjoyable moments. 

For retailers, this trend can lead to increased revenue and sales. When looking at spending habits, BHN found that recipients of gift cards are willing to spend beyond the gift card value, treating the gift card as a discount or helping hand towards a larger purchase. For example, when redeeming a $50 gift card, shoppers spend an average of $67 extra, while a $100 gift card sees an additional $82 spend. 

Moving towards digital wallets and micro-gifting

Australia’s rapid shift towards a cashless society is evident, with cash accounting for only 13 per cent of all payments in 2022, down from 70 per cent in 2007.  In its place, digital payments are rising, with digital wallet transactions totalling $126 billion in FY23.

Digital wallets also support gift cards, yet just 41 per cent of gift cards are stored in digital wallets currently, with email being the preferred storage method (63 per cent) according to BHN research.  

In 2025, we expect to see the rise of digital wallet storage. We also predict the adoption of digital wallets to facilitate a micro-gifting economy. 

The ease and instantaneous nature of digital transactions allow Australians to share smaller value gift cards directly to family and friends’ digital wallets, celebrating the smaller, more casual moments in life – a gift card for a coffee to brighten a friend’s bad day, or for a colleague, to say thanks.

Yet, BHN research shows just 17 per cent of retailers use push-to-wallet functionality for gift cards.  Businesses should consider embracing this capability to differentiate their brand’s gift card program and improve the convenience factor of receiving, storing and redeeming gift cards. This typically raises incremental spending, promotes omnichannel shopping behaviours, increases customer engagement, and drives brand loyalty. 

How to gift on-trend 

Gift cards are also emerging as a solution for Aussie consumers to stay on trend in 2025. BHN research on holiday gifting trends found that 51 per cent of Australians choose to give a gift card as it allows the recipient to select gifts they truly want. 

This trend offers two significant benefits for gift-givers:

  1. Flexibility in purchasing: Gift-givers can purchase gift cards at non-peak times, preparing for future occasions such as Christmas, birthdays, and graduations. 
  2. Trend-proof gifting: As social media trends cycle faster than ever before, gift cards eliminate the risk of giving an out-of-trend or unwanted gift. Recipients are empowered to choose gifts that align with their curated lifestyle and current trends.

Australian merchants should consider expanding their gift card offerings to provide consumers with more choice while maximising the revenue potential that the year-round gift card industry provides. This could include adding gift cards from non-competitive brands or integrating loyalty programs. 

  • Retailers looking to include gift card programs within their business this year should get in touch with Blackhawk Network’s gift card experts at www.blackhawknetwork.com/au-en/.