{"id":23298,"date":"2025-06-25T19:02:36","date_gmt":"2025-06-25T13:32:36","guid":{"rendered":"https:\/\/blog.razorpay.in\/blog\/?p=23298"},"modified":"2025-06-25T19:02:36","modified_gmt":"2025-06-25T13:32:36","slug":"how-gift-cards-can-boost-your-bottom-line","status":"publish","type":"post","link":"https:\/\/razorpay.com\/blog\/how-gift-cards-can-boost-your-bottom-line\/","title":{"rendered":"Stop Leaving Money on the Table: How Razorpay Gift Cards Can Boost Your Bottom Line"},"content":{"rendered":"

When a customer buys a gift card from your brand, you\u2019re not just ensuring a future sale, you\u2019re opening a powerful new revenue stream.<\/span><\/p>\n

Think about it: a Rs.100 gift card was purchased today. The customer might redeem it tomorrow\u2026 or a month later\u2026 or sometimes, not at all. But the moment the card is sold, that Rs.100 is already in your account. You\u2019ve generated cash flow before you\u2019ve had to sell a single product.<\/span><\/p>\n

This is the hidden beauty of gift cards: they bring in upfront revenue, drive new customer acquisition, and quietly add to your profits in ways many brands don\u2019t fully realise.<\/span><\/p>\n

Moreover, customers tend to redeem 20-30% higher than the gift card amount – giving the brand an additional profit.<\/span><\/p>\n

Are You Missing Out on This Revenue?<\/b><\/h2>\n

Two hidden revenue streams power this engine:<\/span><\/p>\n

    \n
  1. Treasury Income<\/b>
    \n<\/b> In India, gift cards typically get redeemed after 30 to 45 days. Until then, the funds sit in the escrow account, earning interest\u2014generating revenue with zero effort. Going by this, <\/span>at current rates (6% annually), every Rs.1 lakh in gift card sales generates Rs.740 in pure treasury income.<\/span><\/li>\n<\/ol>\n

    2. Breakage<\/b>
    \n<\/b> Across industries, 10\u201319% of gift cards are never fully redeemed. This leftover value goes straight to your bottom line.<\/span><\/p>\n

    Combined treasury + breakage income accounts for 3.74% \u2192 Turns idle money into revenue<\/span><\/p>\n

    \"\"An opportunity of a lifetime<\/b><\/h2>\n

    Gift card usage is still growing in India, meaning longer redemption cycles and higher breakage compared to other markets. For brands, this translates into stronger margins and improved cash flow.<\/span><\/p>\n

    And there\u2019s more: when customers do redeem their gift cards, they tend to spend more than the card\u2019s value, increasing average order size and customer lifetime value.<\/span><\/p>\n

    In short: Gift cards drive revenue, profitability, and growth\u2014all while being cash flow positive from day one.<\/span><\/p>\n

    How Razorpay Helps You Unlock This<\/b><\/h2>\n

    With <\/span>Razorpay Gift Cards<\/b>, we help brands tap into the full potential of this opportunity:<\/span><\/p>\n