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The Digital Wallet Effect: Why Storing Gift Cards in Mobile Wallets Increases Repeat Spend

Insights
News
Posted on 11 September 2025
Read time 2 mins
Author Josh Wells

Gift cards have always been a versatile sales tool for brands - but digital wallets are transforming how they’re used. What used to be a physical card in someone’s purse is now a tap away on their phone, ready to spend anytime. And that simple change is driving more frequent use and higher repeat spend.

Our research shows 76% of mobile wallet users are more likely to use a gift card if it’s stored in their wallet. For brands, that’s a direct link between mobile wallet integration and customer spend.


Why mobile wallets matter for brands

  1. Frictionless redemption
    Lost cards, forgotten email links, or complicated redemption steps kill conversion. Storing a gift card in Apple Wallet or Google Wallet eliminates these blockers, making it easier for customers to use - and more likely they’ll use it quickly.
  2. Instant access fuels impulse purchases
    When the card is already loaded in the wallet, a customer can redeem it in seconds. This encourages spontaneous spending and keeps your brand top of mind.
  3. Better visibility, better results
    A physical card can sit in a drawer for months. A digital wallet card is visible every time a user scrolls through their payment options, keeping your brand in their daily line of sight.

The link to repeat spend

Gift cards stored in digital wallets are redeemed faster - and faster redemption often means repeat purchases. When customers have a smooth first experience, they’re more inclined to reload or buy again. That’s especially true for self-use buyers, who make up 70% of U.S. consumers purchasing gift cards for themselves.


How to make the most of mobile wallet integration

  1. Promote the feature at purchase
    Don’t assume customers will know they can add the card to their wallet. Prompt them during checkout or in the confirmation email.
  2. Incentivise wallet storage
    Offer a small reward or bonus for adding the gift card to a wallet. Even a limited-time offer can create the habit.
  3. Pair with instant delivery
    The impact is even greater when cards can be stored immediately after purchase. Instant delivery plus wallet storage creates a friction-free experience that customers love.

Example use cases for brands

  • Quick-service restaurants: Encourage in-app ordering with wallet-stored gift cards.
  • Retail chains: Tie digital gift cards to flash sales to prompt immediate redemption.
  • Entertainment & events: Make last-minute purchases effortless for customers attending on the same day.

A simple tech shift with big ROI

Integrating mobile wallet functionality isn’t just a UX improvement - it’s a revenue driver. By reducing barriers to redemption, you make it easier for customers to shop, spend, and come back again. In a competitive retail environment, that convenience is often what tips the decision in your favour.


The takeaway:
Mobile wallet integration isn’t just a nice-to-have; it’s a powerful lever for increasing gift card usage and repeat spend. The easier you make it for customers to access and use their cards, the more they’ll choose your brand - again and again.


Download the full whitepaper - From Gifting to Gaining: How Gift Cards Have Become a Consumer Power Move - to explore the data and strategies behind the mobile wallet effect.

Get the whitepaper now

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