Incentives work best when they’re immediate, flexible, and easy to use. That’s exactly why self-use gift cards are becoming a game-changer for loyalty programmes, cashback platforms, and fintechs.
For years, gift cards were seen mainly as gifts - something you gave to someone else. But the data tells a different story now. 70% of U.S. consumers have purchased a gift card for themselves in the past year. They’re not waiting for a birthday or holiday; they’re using gift cards to make everyday spending go further.
For buyers in the rewards and incentives space, this shift represents a massive opportunity to increase engagement and keep users coming back.
Why self-use matters for platforms
- It taps into daily spending habits
Self-use isn’t a special-occasion behaviour — it’s happening every week. When users can buy a gift card for essentials or favourite retailers at a discount, they’re more likely to interact with your platform regularly.
- It feeds loyalty through instant value
Our research shows that long delays for cashback — sometimes 60–90 days — are out of sync with consumer expectations. Instant digital gift cards deliver the reward on the spot, strengthening positive associations with your platform.
- It strengthens retention
Once a user gets into the habit of using your platform for self-use purchases, they’re less likely to shop elsewhere. The value is built into their routine.
The instant gratification advantage
Consumers live in an on-demand world. Whether it’s streaming a TV series or getting same-day delivery, waiting is no longer part of the equation.
Gift card cashback fits perfectly into this mindset. With Tillo, our API delivers rewards in a fraction of a second - meaning your users can buy, redeem, and spend before they’ve even left the store. That immediacy drives satisfaction, which in turn drives loyalty.
Example:
A user at checkout in a grocery store opens your cashback app, buys a discounted gift card for that store, and pays instantly. Their savings are immediate, and the experience feels seamless. Next time, they’ll do it again - and probably more often.
Designing for self-use success
- Highlight instant rewards
Make it clear that with digital gift cards, there’s no waiting period. Show the benefit at the point of purchase.
- Integrate with mobile wallets
The easier it is for users to store and spend, the more they’ll come back. Mobile wallet integration cuts down on lost cards, forgotten links, and redemption delays.
- Offer choice without complexity
Closed-loop cards
give brand loyalty and discounts, open-loop offers flexibility, and multi-retailer cards balance both. Providing all three keeps different types of users happy.
Why this trend is hiding in plain sight
Despite its growth, the self-use market is often underreported. Many transactions are still lumped into outdated B2B or B2C categories, missing the unique behaviours of users choosing gift cards for themselves.
For buyers, this is a chance to get ahead. By tracking and optimising for self-use, you can uncover new revenue streams and deliver better value to your users.
The takeaway:
Self-use isn’t a fringe habit. It’s a mainstream, fast-growing behaviour that platforms can harness to increase engagement, build loyalty, and drive repeat transactions. The brands and buyers who embrace it now will have the advantage when everyone else catches up.
Download the full whitepaper - From Gifting to Gaining: How Gift Cards Have Become a Consumer Power Move - for deeper insights and data on the self-use trend.
Get the Whitepaper now.
