New Benchmark Report on Digital Gift Card Programs Highlights Continuous Improvement but Sees Potential in Social Commerce and Embedded AI Pleasanton, California — Blackhawk Network (BHN), a leading provider of payment brands, in collaboration with NAPCO Research, has released its eighth annual digital gift card market report. The report underscores the ongoing advancements and investments by U.S. merchants and organizations in their digital gift card programs, driven primarily by consumer demand and innovative corporate strategies. According to the findings, digital gift cards are increasingly favored by consumers due to their convenience, variety, and personalization. Over the past year, multiple merchants have enhanced their digital gift card payment systems, added new features, and improved user experiences to better serve their customers. For instance, many retailers have introduced instant sending and customizable greetings, making digital gift cards more interactive and appealing. Some have also implemented loyalty points and member rewards, adding value to the purchase of digital gift cards. Despite these advancements, the report identifies significant opportunities for growth in social commerce and embedded artificial intelligence (AI) technology. Presently, most digital gift cards are bought and traded through conventional e-commerce platforms, with limited use of social networks for promotion and sales. Industry experts believe that leveraging social commerce can increase brand visibility and consumer engagement, thereby expanding the market share of digital gift cards. Similarly, the integration of AI technology can optimize user experiences, boost purchase conversion rates, and facilitate personalized recommendations and services. Several major retail brands are already experimenting with social media to promote their digital gift card programs. A well-known clothing brand, for example, has embedded gift card purchase links in its Instagram Stories, allowing users to complete transactions directly through the platform. Another example involves a popular restaurant chain that uses AI to provide personalized gift card recommendations on its website and mobile app, tailoring suggestions to individual consumer histories and preferences. The report also highlights several key challenges in the digital gift card market. Foremost among these is the concern for cybersecurity and data protection, which affects both merchants and consumers. Building consumer trust in the security of digital gift cards is essential for merchants. Additionally, maintaining high user satisfaction while continuously innovating and offering more personalized options remains a critical focus for retailers. Industry experts have lauded the report for its comprehensive insights. They agree that it not only captures the current state of the digital gift card market but also provides clear guidance for future development, particularly in the realms of social commerce and AI technology. These areas hold promise for driving new growth and further upgrading the digital gift card industry. Blackhawk Network, a global leader in payment brands, has been in operation for many years and specializes in offering a wide range of payment solutions, including gift cards, prepaid cards, and reward programs. NAPCO Research is a renowned market research and consulting firm known for its expertise in leveraging data analysis to provide strategic recommendations. Their partnership aims to provide merchants with deep insights into market trends, helping them navigate competitive landscapes and enhance their performance.