The Evolution of Gift Cards: From Paper to Planet-Friendly and Digital

Gift cards have come a long way since their humble beginnings. What started as paper certificates mailed to employees, customers, or partners has evolved into a modern, sustainable, and digital experience that reflects how people shop, work, and celebrate today.

From Paper to Plastic

Back in the 1980s and early ’90s, paper gift certificates were a popular way to say thank you or recognize a job well done. They were simple but not always secure or convenient—easy to lose, easy to forge, and often slow to arrive.

That changed in the mid-1990s when retailers like Blockbuster, Mobil, and Neiman Marcus introduced the first plastic gift cards. These cards used magnetic strips to store value, adding convenience and fraud protection. By the early 2000s, reloadable options like the Starbucks Card changed the game again, turning a one-time gift into an ongoing loyalty tool.

The Rise of Digital Gift Cards

Then came the smartphone revolution. Suddenly, people could store and redeem rewards instantly without needing a physical card. E-gift cards (or digital gift cards) made giving and receiving faster, safer, and greener. Today, most can be sent and redeemed within minutes—no shipping, no waste, no waiting.

Tools like the Engage2Reward™ Gift Card Ordering Platform have taken this even further, helping organizations send digital rewards at scale. Businesses can instantly deliver digital gift cards to employees, customers, or program participants via email or mobile wallet, complete with tracking, reporting, and personalization options—all from one dashboard.

Sustainability: The Next Phase of Evolution

In 2026, the conversation around gift cards has expanded beyond convenience to include sustainability. Businesses and consumers alike are rethinking how rewards are produced and delivered:

• Recyclable & Cardboard Gift Cards: Many brands now offer cards made from 100% recyclable cardboard or biodegradable materials instead of traditional PVC plastic. These eco-friendly options align with corporate sustainability goals and reduce environmental impact.
• Digital-First Programs: Digital and mobile wallet cards continue to dominate, helping organizations eliminate waste entirely. With mobile wallet compatibility (Apple Wallet, Google Wallet, etc.), recipients can store rewards securely on their phones.
• Responsible Printing: For those who still prefer a tangible option, many providers now use FSC-certified materials and low-emission inks to minimize carbon footprint.

Powered by GiftCard Partners, the Engage2Reward Platform gives organizations the best of both worlds—offering both physical and digital delivery options. Whether your recipients want to unwrap a gift card in person or receive it instantly on their device, you can tailor the experience without compromising on sustainability.

Why Gift Cards Still Reign Supreme

Gift cards remain the #1 most requested reward among employees and consumers alike. According to Fiserv, nearly 9 in 10 employees feel gift cards make a great
workplace gift or incentive. Unlike cash, gift cards create a memorable experience—whether it’s dinner with family, a self-care splurge, or groceries that stretch a monthly budget.

Gift cards also offer unique advantages for organizations:

• Flexibility: Recipients choose what they want, ensuring satisfaction.
• Brand Alignment: Choose from merchant categories that reflect your program’s goals, like wellness, dining, or travel.
• Scalability: Distribute to one or 10,000 recipients instantly via platforms like Engage2Reward.
• Sustainability: Minimize waste with digital delivery or recyclable card options.

The Future of Gift Cards

The evolution isn’t over. As contactless payments, AI-driven personalization, and sustainability trends continue to shape business operations, gift cards are evolving right alongside them. We’re moving toward a world where every gift—whether physical or digital—can be personal, instant, and environmentally responsible.

With tools like the Engage2Reward Platform, companies can modernize their incentive programs while staying true to what matters most: recognizing people meaningfully and responsibly.

Schedule a call with our team to explore how gift cards fit into your organization's rewards and incentives strategy.