Cashback works - but not all cashback is created equal. For years, traditional cashback programmes have operated on long delays, with rewards landing weeks or even months after the initial purchase. That wait time is no longer matching consumer expectations.
We live in a culture of instant everything - from same-day delivery to streaming the latest release in seconds. So it’s no surprise that instant cashback via digital gift cards is outpacing traditional models, winning over consumers who expect value now, not later.
Why instant beats delayed
- Speed is the new loyalty driver
Consumers who receive rewards instantly are more likely to return. Our research found that waiting 60-90 days for cashback feels outdated, particularly for younger demographics.
- It fits into real-world shopping habits
Imagine a user at checkout - they open your app, purchase a discounted gift card for the retailer they’re in, and pay instantly. The saving is immediate, and the behaviour quickly becomes a habit.
- It strengthens platform engagement
When the benefit is immediate, users interact with your platform more often, increasing the number of transactions and boosting long-term loyalty.
The role of digital gift cards in instant cashback
Digital gift cards remove the friction. They’re delivered in seconds, can be stored in a mobile wallet, and are ready to spend immediately. That means:
- No waiting for processing
- No forgotten rewards
- No lost value
With Tillo’s API, this process happens in a fraction of a second - allowing buyers to deliver exactly what customers want, exactly when they want it.
Why buyers should embrace this shift
- Competitive differentiation
Offering instant rewards puts your platform ahead of competitors still relying on delayed cashback models.
- Higher conversion rates
The promise of immediate value can increase conversion at the point of purchase, especially for higher-ticket items where the savings feel substantial.
- Increased retention
Users who enjoy fast, frictionless rewards are more likely to stay loyal, and less likely to explore other options.
Real-world examples of impact
- Cashback apps: Integrating instant gift card rewards at the point of sale drives repeat behaviour and keeps your platform front-of-mind.
- Loyalty programmes: Swapping points for instant gift cards increases redemption rates and member engagement.
- Fintechs: Offering instant gift card payouts as an alternative to bank transfers adds flexibility and delight.
The numbers speak for themselves
Tillo’s data shows a 340% increase in cashback-related gift card transactions between 2023 and 2024. This isn’t a passing trend - it’s a structural shift in how consumers want to receive value.
The takeaway:
Consumers are no longer willing to wait months for rewards they’ve already earned. Instant digital gift card cashback aligns with modern expectations, boosts engagement, and sets your platform apart. The sooner you make the switch, the faster you’ll see the results.
Download the full whitepaper - From Gifting to Gaining: How Gift Cards Have Become a Consumer Power Move - to explore the data and insights driving this change.
Get the whitepaper now
