Digital vouchers are expected to make up 15 per cent of the total UK retail gift card market by 2015.
John Bohan, MD of Jigsaw Business Solutions and former business exec at M&S and John Lewis, says the UK retail gift card market is estimated to be worth around £4.74 billion. 46 per cent of this is B2C and 54 per cent is B2B.
Speaking at Distree EMEA 2014, Bohan said: "Retail gift cards are still the most popular key gift at seasonal events.
"[Retailers typically see an] Average spend uplift of 40 per cent when gift cards are redeemed. Just six per cent of vouchers don't get redeemed every year."
Bohan talked about popular digital gift cards and new offerings such as M&S' Valentines Day meal digital voucher gift and similar Easter digital gift card.
He also said that the Ticket Master website sold £100,000 worth of vouchers on Christmas Day alone last year, and that more UK consumers are purchasing retail gift cards as presents for friends and family members.
Bohan set up his own consultancy firm Jigsaw Business Solutions in September 2013, which also runs companies' gift card businesses.