Many Australians will be rushing to buy gift cards this Christmas but there are things to watch out for before you rush in

Shoppers will be snapping up gift cards in the countdown to Christmas. These are the things to consider and best ways to buy them in time for the festive season.

The increased demand for quick and easy solutions to treat friends and family this Christmas means gift cards are high on shopping lists.

Apart from letting the recipient choose their own present, it’s also a good solution if you can’t reach loved ones interstate.

Australian Retailers Association figures reveal that the gift card market grew 16 per cent during 2015-2019 and is expected to continue to swell by 11 per cent during 2020-24.

CEO Paul Zahra says they will be popular this Christmas as a great option for people who have everything or when you have no idea what to buy.

“They have been particularly popular this year as a cost-effective way of sending Christmas presents interstate due to limited interstate travel due to border restrictions,” Zahra says.

But before rushing to order up gift cards there’s a few important things to consider.

1. THEY ARE JUST LIKE CASH

For this reason, electronic cards are becoming increasingly popular and arguably a better way to give to someone than a physical card because it’s harder to misplace them from an inbox or app.

Consumer group Choice’s spokesman Jonathan Brown says they’re a great option “if you’re worried about the gift voucher slipping out of your wallet and getting lost”.

“Gift cards are like cash – if you lose it you can’t get it back,” he says.

“If you give someone an electronic gift card they’ll be able to access it via their phone.”

Melbourne start-up GIFTA kickstarted in 2019 and co-founder Dion Bastian says being able to access gift cards via a smartphone or email inbox is a huge help for consumers.

“We found a lot of people were buying gift cards and either putting them in their drawers or losing them and missing out on a single place to store their cards,” he says.

“By Christmas we’ll have 108 retailers on-board including big brands and boutique merchants.”

2. THEY OFFER ULTIMATE CONVENIENCE

Small business owner Emily Winter, 29, says digital gift cards are an easy to sort out presents because the purchase and delivery to the recipient can all be done online.

Small business owner Emily Winter, 29, from South Yarra shopping on Chapel Street. She is spending up on electronic gift cards this year as Christmas presents. Picture: David Geraghty.

The platform also allows the recipient to select exactly which store they would like the gift card from once it’s given to them.

“I like the idea that friends can sort what works from them and choose which brands to go with,” Winter says.

“After COVID and being so used to being inside the idea of going out to stores to do Christmas shopping is a bit much, instead I’m able to tick things off my list using my phone.”

Many Australians have also endured significant delays on parcels throughout the pandemic.

Bastian says, “it’s never been an easier way to send a gift without the worry of delivery delays or the stress of finding the perfect gift.”

3. THEY HAVE AN EXPIRY DATE

The multi-billion gift card industry was forced to undergo a shake-up last year which included the extension of expiry dates.

New national laws were introduced which means any gift card sold after 1 November 2019 must be redeemable for at least three years after the date of purchase.

Expiry dates have long been a bugbear for consumers who were often in a race against the time to use their gifts cards – some even expired in as little as three months.

Under the changes some retailers have even gone a step further and have no expiry dates which Brown says it’s a big help for consumers.

“If you have a gift card sitting forgotten in the bottom of your bag for a year you’ll still have plenty of time to use it once you dig it out again,” he says.

4. THEY CAN BE STORED IN AN APP

Gift apps including GIFTA, Prezzee and eGift Australia are some of the easiest ways to buy cards and have them sent to a person’s inbox or app where they cannot be lost, unlike a physical card.

Gifta app is one of the popular ways to buy gift cards online this Christmas. Source: Supplied.

Bastian says this takes out of stress of losing what is the equivalent to cash.

“So many people have misplaced their cards and they don’t know where they are, we have a database where it’s kept,” he says.

“We can send it out to you again if you need, it’s very easy to have stored in your app or in your Apple wallet or Google wallet.”

@sophieelsworth

Originally published as Many Australians will be rushing to buy gift cards this Christmas but there are things to watch out for before you rush in