Every year, billions of dollars in gift cards remain unredeemed. This means businesses get paid without providing a product or service. But just how much of this revenue goes unclaimed? Let's explore the numbers and why offering gift cards is a smart move for any business.
Related Resource: Learn how a gift card management system can maximize revenue
Key Points:
Several factors contribute to unspent gift card balances:
Many people receive gift cards, put them in a drawer, and forget they exist. In 2024, about a third of consumers in the U.S. admitted they forgot about their gift cards entirely.
Although laws require most gift cards to stay valid for at least five years, many still go unredeemed due to loss, damage, or expiration. Over one in five consumers said their gift card had expired before they even tried to use it.
Consumers often leave small amounts on gift cards, thinking they aren't worth spending. In Australia, the total value of unused gift cards annually amounts to $1.9 billion.
If a store has limited locations or an inconvenient online process, customers may never use their gift cards.
Gift cards create revenue upfront, whether customers use them or not. Here's how they work in your favor:
Key Points:
While unused gift cards are profitable, encouraging customers to redeem them can be even more beneficial. When customers visit your store to use a gift card, they might buy more or become repeat shoppers.
🔹 Tactics to Boost Redemption Rates:
What percentage of gift cards go unused in the UK?
In the UK, an estimated 8-10% of gift card balances go unredeemed annually, amounting to millions in unused funds.
What percentage of gift cards go unused in the US?
In the U.S., nearly $21 billion worth of gift cards remain unused each year, accounting for approximately 10-19% of total gift card sales.
What is the percentage of gift cards that go unused?
Globally, up to 20% of all gift card balances go unspent, making it a significant source of profit for businesses.
What is the average redemption rate for gift cards?
The average redemption rate for gift cards varies by industry but typically falls between 80-90%, meaning a notable percentage remains unspent.
How many gift cards do not get used?
In the U.S. alone, nearly $21 billion worth of gift cards remain unused, and many consumers either forget or lose them.
Enjovia provides businesses with an all-in-one gift card management system designed to maximize revenue while offering a seamless experience for customers. Here’s why businesses trust Enjovia:
✅ Maximize Profits with Ease – Enjovia's platform ensures smooth sales, tracking, and redemption, reducing the risk of lost revenue from unused cards.
✅ Automated Tracking & Reporting – Stay on top of your gift card sales with real-time insights and detailed reports.
✅ Custom Branding & Personalization – Create a branded experience with customized gift card designs, messaging, and flexible pricing options.
✅ Seamless Multi-Channel Selling – Sell gift cards online, in-store, or through third-party marketplaces with a fully integrated system.
✅ Encourage Redemption for Repeat Business – Use Enjovia’s built-in marketing tools to remind customers about their gift cards and encourage redemption.
Unused gift cards represent a major revenue opportunity for businesses. While "breakage" provides immediate profit, encouraging redemptions can also drive customer engagement and loyalty. Implementing a reliable gift card management system like Enjovia helps businesses capitalize on both.
Ready to maximize your gift card sales? Get started with Enjovia today!
