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Nigel TAYLOR Published
August 29, 2025
It was only a matter of time… digital gift cards have overtaken physical cards for the first time in the UK.
Digital gift cards now command 52% of the market share, with sales surging by 17.1% in H1 2025, up from a market share of 30% in 2025. The findings from the Gift Card & Voucher Association (GCVA) illustrate a “pivotal shift in the UK gift card market”, it said.
“This milestone underscores the growing importance of digital solutions in the gift card sector, driven by their convenience, flexibility, and adaptability to modern business needs”, the GCVA added.
And it noted companies are now increasingly integrating digital gift cards into reward programmes and customer loyalty strategies, helping boost their popularity.
However, physical gift cards “continue to hold their place… providing a tangible, personal touch, especially valued during traditional gifting occasions”.
The GCVA’s 2025 H1 report highlights 9.5% like-for-like sales growth compared to H1 2025 and an 8.3% increase on a rolling year basis, “reflecting a strong recovery and robust demand across the sector”.
Other findings include the leisure sector now outpacing retail with a 15.5% increase in like-for-like sales and a 24.6% rise over the rolling year. This marks the sixth consecutive period that leisure has outperformed the retail sector, highlighting a sustained consumer appetite for experiences.
However, it said the retail sector shows “promising growth” although still led by grocers, recording a 23.2% increase in like-for-like sales.
Hannah Shimko, Managing Director of the GCVA, said: “The rise of digital gift cards is a landmark moment for our industry, highlighting the shifting preferences of both consumers and businesses. This trend underscores the innovation and flexibility inherent in the gift card market, which continues to adapt and grow despite economic headwinds. As we approach the crucial Christmas period, it will be intriguing to see how these trends evolve and shape the future of the market.”