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Gift cards vs cash: the pros and cons of both

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A number of studies have revealed that people would rather receive gift cards instead of cash.

Here are a few of them:

75% of people choose an prepaid card when they were given the choice of a cash or a $50 prepaid card.
A majority of 82% said they’d like to receive rewards for gift cards from their employers.
And, when asked about what type of present they would prefer to be given for special occasions 60% of respondents indicated that they would prefer a gift card

It’s not a surprise the fact that 81% businesses in the UK offer their employees cash-based reward and recognition. We also are aware the fact that 77% of workers will work better when they are recognized and appreciated, so knowing what kind of rewards they want could be a significant factor in productivity and performance.

When it comes to cash or gift cards why is there a huge appeal for gift cards?

The advantages of gift cards

Gift cards prevail at the end of the day because they offer a variety of advantages that cash simply cannot provide. The benefits include…

They’re unforgettable

Because gift cards are generally one-brand or multi-brand they are more likely to spend the money on a surprise treat for themselves. Therefore, the gift card is the same experience as cash. The item (or or experience) they purchase is an everlasting reminder of their accomplishment.

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They can be customized

Since cash is a non-personal purchase, the giving and receipt of a gift card can be customized to the recipient by putting your company’s logo, the name of the person or a brief message. It will also help to clarify the purpose of the gift and will make it easier for the recipient to remember whom it came from.

They’re guilt-free

In the case of spending gift cards and cash gifts cards provide the person receiving them a way to indulge themselves. Cash-based purchases can make people be compelled to do what is right’, and apply it towards a credit card or an upcoming expense. However, a gift card it is viewed as a treat that is guilt-free. 70% of the employees enjoying their gift cards because they can pick the items they would like to purchase

They’re the subject of discussion

People aren’t keen to talk about cash, the exact opposite is true with regard to gift cards. What’s the reason this is important for businesses? It is important for employees to share their accomplishments with colleagues as they inspire others to achieve their own recognition of employees. Things purchased using gift cards can also serve as an image reminder of the achievement.

They are a source of optimism.

A further bonus of gifts cards that are enjoyable, free of guilt and often talked about is that they create positive perceptions about the business. They are also better at inspiring employees more than cash reward. 29% of the recipients love them because they are able to re-gift them. They’re an employee reward that doesn’t stop giving!