Gift cards are taking on a broader role in consumer spending, functioning not only as presents but also as tools for budgeting, rewards redemption and brand discovery, according to new research from Tillo. Its 2026 report, The Gift Card Opportunity, surveyed 3,081 consumers in the United States and United Kingdom and found that 18% of adults in each market had purchased a gift card specifically to control spending. The findings point to opportunities for retailers, loyalty providers and marketers to use gift cards as part of customer acquisition, retention and rewards strategies.

Tillo Report Highlights Gift Cards' Expanding Role in Consumer Spending

Gift cards are increasingly being used to manage everyday purchases and access incentives, according to Tillo's latest consumer research. The findings suggest that brands may need to rethink gift cards as more than seasonal products, particularly as consumers seek ways to manage household spending and make rewards go further.

The report, The Gift Card Opportunity, examines gift card purchasing and usage among 3,081 consumers across the U.S. and U.K. Tillo, which provides gift card, rewards and incentives infrastructure, says consumers are buying gift cards for themselves, using them to influence purchasing decisions and showing interest in accessing them through a wider range of channels.

The research found that 18% of respondents in both countries had bought a gift card specifically to control spending. Meanwhile, 42% in each market said redeeming a reward or incentive, such as cashback or a promotion, was a reason for buying a gift card for personal use.

These findings suggest that gift cards can serve two purposes: a way to pre-allocate spending and a vehicle for redeeming rewards. For consumers, a gift card with a fixed value may make it easier to establish a spending limit for a particular retailer. For brands and loyalty providers, gift cards can connect incentives with purchases while potentially directing spending toward participating merchants.

Rewards and Brand Discovery Create Marketing Opportunities

Consumer preferences around incentives are another key finding. When offered a reward, 53% of U.S. respondents and 58% of U.K. respondents said they would choose a gift card for immediate or future use rather than cashback paid later or a coupon for a subsequent purchase.

The report also found that 89% of American respondents and 92% of British respondents said receiving a gift card would make them more likely to try a new brand. In addition, 73% in the U.S. and 76% in the U.K. said a brand offering gift cards affects their opinion of it. Around one in five respondents in each market said the availability of gift cards makes a brand feel more trustworthy.

For marketers, these results point to potential uses for gift cards in customer acquisition and loyalty programs. A gift card can provide a defined incentive to try a new retailer, product or service, while branded rewards can give consumers a reason to engage with a participating merchant.

However, stated willingness to try a brand does not necessarily translate into completed purchases or long-term loyalty. Brands will need to measure redemption, incremental sales, repeat purchases and customer lifetime value to determine whether gift card incentives generate profitable growth rather than simply subsidizing purchases customers would have made anyway.

Gift Cards Can Shape Purchase Timing and Basket Decisions

Tillo's research suggests that gift cards can influence not only which brands consumers consider but also when and how they shop. Around one-third of U.K. respondents (33%) and 29% of U.S. respondents said having a gift card prompted them to make a purchase sooner than they otherwise would have.

The spending effects vary by consumer. One-quarter of respondents in both markets said they typically spend only the value of the gift card, treating it as a spending limit. At the same time, Tillo found that one-quarter in each country had used gift cards to buy from new brands or select premium items instead of their usual choices.

That distinction matters for retail strategy. A fixed-value card may help some shoppers control spending, while others may use it to explore a new merchant or trade up to a more expensive product. Brands should therefore evaluate gift-card programs against different objectives—such as incremental purchases, new-customer acquisition and average order value—rather than treating redemption volume as the sole measure of success.

The report also points to a distribution challenge. Consumers said they wanted to buy gift cards through an average of three channels, including physical stores, brand websites, marketplaces and loyalty platforms. Brands that offer gift cards through only one channel may be missing opportunities to reach shoppers where they prefer to browse and purchase.

For gift card providers and retailers, this creates a case for broader distribution and more connected rewards infrastructure. Integration with loyalty programs, employee incentives, digital marketplaces and customer engagement platforms can help make gift cards available across more touchpoints. The business case, however, depends on distribution costs, partner economics, fraud controls and the ability to measure incremental value.

Market Landscape

Gift cards already occupy a substantial place in retail and loyalty strategies. The U.S. National Retail Federation estimated that consumers would spend $29 billion on gift cards during the 2025 winter holiday season, making them one of the most popular holiday gift categories. That seasonal demand provides context for Tillo's findings that consumers also use gift cards for personal spending and rewards redemption.

The broader opportunity is to connect gift cards with customer relationship management, loyalty programs and digital commerce. For retailers, a gift card can function as a prepaid purchase, a reward for a qualifying action or an incentive to try a new brand. For loyalty providers, it can offer a recognizable redemption option across participating merchants.

However, the Tillo findings should be interpreted in context. The research was conducted online by The Harris Poll on Tillo's behalf, with 2,059 U.S. adults surveyed June 2–4, 2026, and 1,022 U.K. adults surveyed May 11–14, 2026. Tillo reports sampling precision of ±2.7 percentage points for the U.S. survey and ±3.7 points for the U.K. survey at a 95% confidence level, with wider uncertainty for subgroups. The findings represent consumer responses, not audited purchase records or proof that gift cards cause higher sales.

Strategic Outlook

Tillo's research suggests that gift cards can serve as a bridge between consumer rewards and everyday commerce. The opportunity for marketers is to make them easier to purchase, redeem and discover across channels while matching incentives to specific business goals.

Three priorities stand out:

• Expand distribution: Make gift cards accessible through the channels customers already use, including e-commerce sites, physical retail, marketplaces and loyalty platforms.

• Measure incremental impact: Track new-customer conversion, repeat purchases, average order value and redemption behavior to distinguish genuine growth from spending that would have happened anyway.

• Connect rewards to customer data: Use appropriate CRM and loyalty integrations to understand which offers attract new buyers and which encourage existing customers to spend more.

The central question for brands is no longer simply whether to sell gift cards. It is how to integrate them into customer acquisition, retention and rewards programs without eroding margins or confusing consumers about the value of an incentive.

Top Insights

• Tillo found that 18% of U.S. and U.K. adults had purchased gift cards specifically to control their spending, indicating a role beyond traditional gifting.

• More than two in five respondents in both markets cited rewards or incentives as a reason for buying gift cards for personal use.

• Most respondents said gift cards could encourage trial of a new brand, creating potential applications in acquisition campaigns and loyalty programs.

• Consumer interest spans multiple purchasing channels, suggesting that limited gift-card distribution could constrain reach and convenience.

• Brands should measure incremental sales, customer acquisition and repeat purchases rather than relying on redemption volume alone.

Get in touch with our MarTech Experts.