Gift Cards See Revenue Surge Amid Shift Toward Higher Value Cards

Annual report highlights an 18.3% jump in dollar revenue, faster redemption rates, and a growing consumer preference for premium gift card denominations

Waltham, MA - November 5, 2026 - New data from the Paytronix Gift Card Report reveals a significant evolution in consumer gift card behavior, with the industry posting strong revenue growth even as unit volume growth remained modest. The findings point to a maturing market where value per transaction, not just volume, is becoming the defining metric of success.

The report, which tracks year-over-year (YoY) performance across card denominations, sales channels, and redemption behavior, found that total dollar revenue from gift cards grew 18.3% year-over-year, rising from $425.7 million in 2024 to $503.7 million in 2025 while total cards sold grew at a comparatively modest 2.6% (from 11.3 million to 11.6 million units).

This divergence between revenue and volume growth is a hallmark of a market undergoing a value shift: instead of purchasing more gift cards, consumers are choosing to deposit more money per card.

The most striking finding in this year's data is the clear divide in denomination performance. Higher value cards are thriving, while lower value cards are in retreat.

• $50 cards saw the strongest growth of any card, purchases up 11.5% YoY (from 1.88 million to 2.10 million units)
• $25 cards saw a decline of 5.8% YoY, but still saw the greatest overall volume (dropping from 2.43 million to 2.29 million units)
• $10 cards posted healthy growth of 5.3% YoY (increasing from 1.61 million to 1.69 million units)
• $5 cards surprisingly saw the steepest fall, dropping 12.5% YoY (918,300 units to 803,221 units)

This "trade-up" dynamic has significant implications for retailers and restaurant operators. As consumers consolidate their gift card spending into fewer, higher value purchases, businesses that optimize their product mix toward premium denominations stand to capture disproportionate revenue growth.

The data reveals a notable divergence across distribution channels that reflects broader shifts in dining and retail behavior:

• Full-Service Restaurants (FSR) emerged as the growth leader, with cards sold jumping 4.4% YoY rising to nearly 4.3 million units sold
• eGift channels continued their steady digital expansion, growing 3.0% YoY rising to around 972,000 units
• Quick-Service Restaurants (QSR) despite commanding the largest share of the market at close to 58% of all cards sold, recorded a near flat 0.3% drop. Sitting around 6.65 million units sold YoY

The stagnation of QSR, the industry's single largest channel for gift cards, is a signal worth watching. As consumers trade up in denomination and gravitate toward full-service dining experiences, QSR operators may need to rethink their gift card strategies to maintain relevance and capture a share of the growing premium segment.

The continued growth of eGift, while still a relatively small share of overall volume at 8.4%, underscores the ongoing digitization of the gift card market and the importance of seamless digital purchasing and delivery experiences.

One of the most encouraging findings for the industry is the improvement in redemption speed. The average days-to-redeem fell from 32.7 days in 2024 to 31.1 days in 2025, a 5.0% improvement.

Notably, the holiday season continues to drive the longest redemption windows, with November and December averaging over 41 days to redeem.

December remains the undisputed peak month for gift card sales, accounting for approximately 31% of annual volume in both years. However, December 2025 was essentially flat versus 2024 (approximately to 3.623 million units), suggesting that holiday-season growth may be approaching saturation.

The strongest monthly growth in 2025 came from:

• January: +16.2%
• April: +10.0%
• June: +10.1%

This broadening of growth beyond the traditional holiday window is a positive structural development, indicating that gift cards are becoming a year-round gifting and spending vehicle rather than a purely seasonal product.

*The Gift Card Report 2026 is based on year-over-year transaction data covering card denominations of $5, $10, $25, and $50, across QSR, FSR, and eGift channels, tracking units sold, dollar value, and days-to-redeem metrics for the full calendar years 2024 and 2025.*