Gift cards are a popular gift idea: they are purchased from both large retail chains and small service entrepreneurs, for whom gift card sales are an important source of additional income.

For example, in S Group and Verkkokauppa.com, about a third of the entire year's gift cards are sold around Christmas, but Mother's and Father's Days, as well as graduations, also stand out as busy gift card seasons. 

A gift card saves the giver from the burden of choice.

The popularity of gift cards is explained by their convenience. A gift card saves the giver from the burden of choice. The card recipient can then purchase what they need.   

Gift cards sold at S Group locations are loaded with an average of 50 euros and are valid for 24 months from the time of purchase. The amount can be used all at once or in smaller portions at S Group department stores, grocery stores, restaurants and hotels.

"The validity period is relatively long and there are many locations for use, so not many gift cards go unused," says 𝗠𝗮𝗿𝗸𝗲𝘁𝘁𝗮 𝗟𝘂𝗻𝗱𝗲𝗹𝗹, S-Bank's Head of Cards.

For a small business owner, a gift card is a good way to reach out and get a new customer.

Tens of thousands of gift cards are sold at Verkkokauppa.com every year. Their sales volume has been slightly decreasing, but the average price of the cards has increased by 50 per cent in five years. According to communications expert Sampo Kivistö, the most common price range is 100–170 euros.

"We do not separately track unused gift cards. We also do not renew expired cards," he says.

It has been estimated worldwide‍ that up to a fifth of the value of gift cards remains unused. There are many reasons for this. The card can be forgotten or lost, the purpose of use can be unsuitable, or the remaining balance can shrink too low.

Book in advance

According to Liisa Hanén, executive director of the Association of Micro and Sole Entrepreneurs (MYRY), gift cards bring in a significant portion of income at the end of the year, especially in the care and welfare sectors and in home cleaning.  They are also a good way to reach and acquire new customers.

If you have no use for a gift card, you can put it into circulation.

For accounting reasons, the validity period of gift cards is often limited to the last day of the year. The recipient of the gift card should take this into account and put a reminder on their calendar. If you don't feel like you can use the card, you can put it into circulation.

"It is also worth making reservations in advance. Sole traders' calendar may be so full as the due date approaches that there is no room for all gift card customers," Hanén says.

Remember these things when purchasing gift cards

  • Choose a place the card recipient might actually visit. A card only works where it will be used.
  • Check the period of validity. Prefer at least 12 months. For small service businesses, the expiry date is often the last day of the year.
  • Make sure the card can also be used in smaller parts.
  • Read the restrictions. Does the card apply to discounted prices or are there any product group restrictions (for example, tobacco and alcohol)?
  • Make reservations well in advance. Many services become congested during the holiday season and at the end of the year. The validity of the card does not help if there are no free times to book.
  • Weigh plastic against digital. An electronic card is harder to lose, but perhaps easier to forget it exists.
  • Be aware of the risks. In the event of bankruptcy or the closure of a company, the card may become worthless.