How Leading Australian Retailers Are Elevating Gifting and Driving Revenue

As digital commerce continues to reshape consumer expectations, one channel is quietly driving major gains for retailers: digital gift cards. According to the 2025 Best Digital Gift Card Programs (Australian Edition) — a joint research effort by NAPCO Research and Blackhawk Network (BHN) —gift cards aren’t just a convenience item anymore. They’re a high-growth, high-impact revenue channel with powerful implications for brand loyalty, customer experience, and retail innovation.

The report, now in its fourth year, evaluated 50 Australian merchants across 10 retail verticals and 128 unique criteria. With the digital gift card market projected to hit AU$6.5 billion by 2028 (growing faster than physical cards), this year's benchmark study couldn’t be more timely.

Top Performers and What Sets Them Apart

Amazon.com (92 percent of total points earned), Endota (82 percent), JB Hi-Fi (75 percent), Rebel (72 percent), and Red Balloon (72 percent) emerged as the top five brands in the study. Notably, Amazon’s success was largely driven by having a fully functional mobile app — still a rare differentiator in the category.

The top five merchants stood out for the following components of their digital gift card programs:

• high-quality mobile experiences (avg. score of 80 percent vs. 54 percent for others);
• support for both digital and physical gift cards; and
• clear delivery timelines, including scheduling, and easy gifting options with personalization capabilities.

The performance of these top five merchants validates that gift card success is achievable across verticals, not just in general merchandise.

Key Findings Retailers Need to Know

The report identified a number of practices that drive measurable improvements in gift card programs:

• Mobile-first is mandatory. Consumers expect full-featured, intuitive mobile purchase and recipient experiences. Scores improved notably in mobile app (+5 percent) and mobile web (+6 percent) year-over-year.
• Payment flexibility matters. Support for Apple Pay, Google Pay, and buy now, pay later (BNPL) increased scores by up to 28 percent in the mobile app category.
• Self-use is on the rise. A 30 percent score lift was observed for merchants that made it easy for customers to buy gift cards for themselves.
• Recipient experience is the new battleground. Digital cards averaged an 89 percent score for recipient satisfaction, while physical cards lagged far behind at just 51 percent.
• Fraud protection must be invisible. With 48 percent of customers saying they would shop elsewhere after a declined payment, brands must balance fraud prevention with a frictionless checkout experience.

Vertical Performance and Growth Opportunities

Vertical performance revealed both consistency and room for growth:

• Top-performing sectors included Grocery/Convenience (67%), Specialty (63%), and Sporting (62%).
• Merchants in the Travel (50 percent), Marketplace (52 percent), and Entertainment (54 percent) verticals have the greatest growth opportunities with gift card discoverability and personalization options.
• Gaming was the biggest mover YoY, jumping 9 points due to improved B2B features and recipient experiences.

This data suggests that vertical-specific strategies — e.g., emphasizing B2B bulk purchasing for travel or boosting mobile discoverability in entertainment — could unlock untapped potential.

Best Practices for Elevating Gift Card Programs

In addition to the assessment data, the report offers actionable insights for retail leaders. Here are some of the key tips for merchants to implement within their own digital gift card programs:

• Boost visibility. Gift cards should be featured prominently on homepages, gifting sections, and site search results.
• Market smarter. Only 12 percent of merchants ran gift card promotions during peak shopping periods. Even fewer (1 percent) used social media as a channel to market their gift cards. There’s significant upside here for savvy marketers.
• Sell year-round. Merchants that position gift cards for everyday use (e.g., thank-yous, birthdays, teacher appreciation) create additional revenue opportunities.
• Lean into B2B. Corporate buyers remain an under-leveraged audience. The best programs offered seamless access to bulk purchasing with minimal friction.
• Innovate the format. Whether through personalized printable cards, charitable tie-ins, or wedding registry integration, brands that made gifting feel personal and premium scored highest on innovation.

A Strategic Lever for Revenue Growth

Gift cards are a strategic asset in the broader digital transformation of retail. Digital gifting is one of the most scalable, brand-enhancing, and margin-friendly revenue levers available — if executed thoughtfully. Retailers looking to optimize for convenience, loyalty, and return on investment should consider the digital gift card experience a core part of their omnichannel road map.

For more insights and analysis on the Australian digital gift card, download the 2025 Best Digital Gift Card Programs (Australian Edition) report.