With rising internet use and corporate sustainability goals, digital gift cards are reshaping India’s gifting culture as a greener, more efficient alternative to traditional plastic-based rewards

Byline: Sonia Asher, Co-founder and Director – Paramotor Digital Technology

As India embraces large-scale internet penetration, digitization has influenced every aspect of our lives. A pertinent case in point is the evolution of digital gift cards, particularly in the corporate landscape. According to Switch-Asia and CPCB data, India generated around 9.46-10.83 million tonnes of plastic waste in 2023 and packaging was a major contributor to this number. Furthermore, almost 70 per cent of the plastic packaging turns into waste rapidly, directly adding to the country’s carbon footprint. With nations aiming to reach their ambitious climate goals and sustainability commitments, digital gift cards are emerging as effective solutions to replace physical gift hampers and packages. A Blackhawk Network report claims that digital gift cards can reduce emissions by up to 97 per cent in comparison to plastic cards. This is due to the absence of manufacturing, printing, packaging and shipping endeavours.

 Apart from that, large companies are consistently participating in discussions related to actively devising solutions to achieve sustainable operations. Adopting digital gift cards bears numerous benefits, including aspects like security, transparency, convenience, instant delivery, customization, eco-friendly, digital usage, reloadability, etc. Moreover, these find applications at a corporate level, as well as in individual spaces. Another salient feature exclusive to digital gift cards is the ability for the end user to utilize the funds according to their needs across a diverse range of areas. These incorporate retail stores, e-commerce platforms, bill payments, holidays, dining, travel, experiences and much more. At the business and corporate level, these cards provide an efficient and convenient method to reward employees, manage their budgets and track their expenses. Therefore, the scope of applications is unlimited. In any case, the core lies in sustainability and carbon emission reduction by ensuring that there are minimal cards (ideally no cards) in the landfills.

Digital Adoption and Industry Scope
As per DataReportal, at the beginning of 2024, India had approximately 751.5 million (~75 Crore) internet users, which marks nearly 52.4 per cent penetration. Affordable internet and massive smartphone adoption have ensured that the countrymen experience the power of rapidly innovating technology. Digital payments are a great example to drive this point home. A Press Information Bureau report claims that 65,000+ Crore digital transactions were recorded in just 6 years (FY20-FY25). These amount to a staggering Rs 12,000 Crore+ in rupee terms. This phenomenon has reshaped the very nature of consumer behaviour.

 India’s overall gifting market stood at USD 75 billion in 2024 and the Research and Markets projections expect it to reach USD 92 billion by 2030. Demarcating India’s gift card market, UnivDatos reports that it had hit USD 9.15 billion valuation in 2023 and is slated to grow at a healthy 16 per cent CAGR through 2032. The corporate industry has been a major driver in this exponential growth in India in the last few years. They are curating their programs and choosing partners based on ESG compliance. This enables them to minimize plastic and waste, as well as reduce emissions related to logistics and transportation. India’s corporate gifting market is currently estimated at Rs 14,000 Crore.

What Lies Ahead
A key evolution to recognize is the fact that the digital gifting space is not just limited to the festive season or special occasions anymore. This culture remains active throughout the year among corporate environments and personal usage by the tech-savvy public. The upcoming decade looks immensely conducive for such a culture with the rapidly surging internet penetration and smartphone adoption even in the remote parts of the country. This trend is eco-friendly, sustainable, a greener alternative to the existing activities, swiftly scalable, and in-line with the country’s boosting economy with the inclusion of digital technology. Modern conscious people appreciate the idea of gifting such cards to their loved ones, where the choice lies with the receivers and the wastage (financial and physical) is almost eliminated.

Sonia Asher is the Founder and Director of Paramotor Digital Technology, a DPIIT certified SaaS-based fintech company specializing in digital gifting, rewards and loyalty solutions, and expense management solutions. With over two decades of experience across banking, payments, and technology, Sonia is driving Paramotor’s vision of making digital gifting more inclusive, accessible, and impactful for consumers and businesses across India.

Under her leadership, Paramotor has carved out a distinct niche as a trusted program partner for banks and Prepaid Payment Instrument license holders, enabling scalable, compliant, and user-friendly digital solutions. Today, the company stands as a reliable and evolving force in India’s digital ecosystem, empowering organizations to enhance customer engagement and financial inclusion through technology-driven experiences.

(Disclaimer: The views expressed in this article are those of the author and do not necessarily reflect the views of the publication.)