News

With over a century of history, gift cards have undergone a remarkable transformation. What began as simple handwritten notes of credit, essentially “I owe yous”, has evolved into a multibillion-dollar industry. Their journey mirrors broader shifts in retail, technology, and consumer behaviour, culminating in new and powerful applications such as fundraising.

The Early Days: Paper and Trust

The concept of gifting credit can be traced back to the early 1900s when local merchants and department stores began issuing handwritten or stamped paper certificates that could be redeemed in-store.

For decades, major retailers relied on paper certificates, but the format lacked standardization and was vulnerable to counterfeiting and fraud. Merchants had to process them manually, and there was no reliable way to track balances or redemptions. As consumer expectations and retail systems became more sophisticated, a more modern solution was needed.

The Plastic Revolution

By the mid-1990s, the retail industry introduced a major innovation: plastic gift cards equipped with magnetic stripes. These cards enabled automated tracking, balance management and fraud prevention. Retailers could now load exact amounts and scan cards at the point of sale, revolutionizing how credit was issued and redeemed.

This era saw the rapid adoption of standardized plastic gift cards by major retail chains across North America. Starbucks, one of the earliest adopters, not only popularized branded plastic cards but also introduced reloadable cards.

The Rise of Digital Gift Cards

While plastic cards dominated the early 2000s, a new format began to emerge in the background: the digital gift card, also known as an eGift card. Introduced in the early 2000s, eGift cards became more prominent in the late 2000s and throughout the 2010s as smartphones and e-commerce became part of daily life.

These digital cards brought unmatched convenience. Consumers could now purchase and send gift cards online, often instantly. Whether for birthdays, holidays, or last-minute gestures, eGift cards enabled remote gifting with a few clicks. They could also be used online or scanned in person, bridging the digital and physical retail experience.

Recent Innovations and the App Era

As digital wallets and mobile payments grew, so did the integration of gift card functionality into apps. By the mid-to-late 2010s, consumers could store, manage, and redeem gift cards from their phones. Many retailers launched branded apps with reload and auto-reload options. Platforms also began offering gift card wallets that supported multiple brands.

A New Use Case: Fundraising with Gift Cards

The widespread availability and flexibility of gift cards soon opened the door to a new and impactful application: fundraising. As families and community groups searched for practical alternatives to traditional product-based fundraising, gift card fundraising quickly gained popularity.

Programs like FundScrip made it easy for schools, sports teams, and other groups to raise funds by offering supporters the option to purchase gift cards for everyday shopping. Because participants receive the full value of what they pay for, there’s no extra cost to them, just consistent, ongoing contributions to the cause.

Today, thanks to eGift cards and online platforms, fundraising with gift cards is more accessible than ever. Transactions are fast and secure, campaigns are easy to manage, and supporters can participate from anywhere.

From humble paper certificates to powerful digital tools, gift cards have come a long way. Their evolution reflects not just changes in retail technology but also their growing role in consumer and community life. Flexible, secure, and widely embraced, gift cards are now an excellent modern choice for fundraising.

If you haven’t already, see how FundScrip makes it easy to raise funds using gift cards for everyday purchases.