Gift cards have become a staple of consumer spending, with the global market projected to reach $2.7 trillion by 2027. Despite their popularity, billions of dollars in gift card value go unused every year.
In 2019 alone, an estimated $3 billion worth of gift cards remained unredeemed in the U.S. market. This phenomenon raises questions about the practicality of gift cards as a financial tool and, more importantly, what consumers can do with their dormant value.
If you’re holding onto an unused gift card, opting to sell gift card isn’t just a personal finance hack—it’s a financially sound decision supported by data. Here’s an in-depth look at the economic case for selling your gift cards and why it’s a growing trend in consumer finance.
The Scale of Unused Gift Cards
Gift cards are marketed as a convenient and flexible alternative to traditional gifting. However, research consistently shows that a significant portion of gift card recipients never redeem the full value of their cards.
According to a study by Bankrate, roughly 51% of adults in the U.S. have unused gift cards, vouchers, or store credits. On average, consumers hold onto approximately $167 in unredeemed value, often unaware of its potential or reluctant to use it.
This unspent value represents a form of “breakage”—money that consumers could have used but didn’t, either due to forgetfulness, disinterest in the retailer, or simply a lack of opportunity to visit the store.
From an economic perspective, these unused cards are a liability for consumers but a hidden benefit for retailers, as they represent free capital with no goods exchanged.
Selling Gift Cards: A Growing Consumer Trend
In response to this inefficiency, the secondary market for gift cards has grown substantially. More consumers are recognizing the opportunity to liquidate unused cards through online platforms, converting store credit into cash that can be spent more freely.
By selling gift cards, consumers recapture a significant percentage of their original value, improving their personal cash flow without the limitations imposed by retailer-specific credit.
This growing market is driven by both technological advancements and shifting consumer behavior. Platforms dedicated to buying and selling gift cards have made the process seamless, transparent, and secure.
With just a few clicks, consumers can sell unwanted cards and receive payouts via direct deposit or digital wallets. This ease of use has accelerated the trend, making selling gift cards a more attractive option for financially savvy individuals.
The Opportunity Cost of Holding Gift Cards
From a financial perspective, holding onto an unused gift card represents an opportunity cost. The money tied up in that card could be used elsewhere—whether in daily expenses, savings, or investments—if only it were converted into cash. This is particularly relevant when considering inflation and the potential devaluation of money over time.
For example, the $100 tied up in a gift card today may not have the same purchasing power a year from now. Additionally, many gift cards have terms and conditions that impose fees for inactivity, further eroding their value.
Selling your gift card allows you to avoid these financial pitfalls and reintegrate the money into your cash flow immediately.
The Economic Benefits of Selling Gift Cards
- Liquidity: The most immediate benefit of selling a gift card is increased liquidity. Rather than having funds locked into a single retailer, consumers can access cash to use wherever they prefer. This flexibility is particularly valuable in times of economic uncertainty or when managing tight budgets.
- Mitigating Retailer Risk: The retail landscape is volatile, and some companies face financial instability. Holding onto a gift card for a company that may go out of business poses a risk, as the card could become worthless overnight. By selling the card, you reduce the risk of losing the full value of your asset.
- Eliminating Expiration Concerns: While most gift cards issued today don’t expire for at least five years, some older cards still have expiration dates or fees for long-term inactivity. Selling these cards ensures that consumers capture the full value before it’s diminished.
- Better Use of Funds: Financial planning is all about optimizing the use of available funds. If a gift card doesn’t align with your immediate needs or lifestyle, selling it and reallocating that money toward an emergency fund, a long-term investment, or even a short-term necessity can yield better financial outcomes.
Consumer Behavior and the Shift Towards Liquid Assets
Consumer behavior is shifting toward the prioritization of liquid assets over store credit or non-cash rewards. This reflects a broader trend in personal finance, where the focus is on flexibility, ease of access to funds, and making every dollar work harder.
The rise in popularity of resale platforms has been a key facilitator of this shift. By offering consumers a way to quickly and safely convert gift cards into cash, these platforms are redefining how people think about unused or unwanted assets.
As more people become aware of the benefits of selling gift cards, it’s likely that the secondary market will continue to expand, providing greater liquidity to consumers globally.
In conclusion, selling gift cards is not just a quick fix for clearing out your wallet—it’s a strategic financial decision. Whether you’re trying to maximize liquidity, mitigate risk, or simply avoid the pitfalls of unused gift card value, opting to sell your gift card offers clear economic benefits.
As consumers continue to prioritize financial flexibility, the resale market for gift cards is positioned to grow, providing more people with the tools to make smarter, more empowered financial choices.
