India's gifting habits are getting a digital makeover

Not too long ago, gifting meant wrapping presents with ribbons and colourful paper. Today, a quick scan or a digital voucher is increasingly replacing that familiar tradition.

In Short

• Digital gifting is replacing traditional wrapped presents in India
• QR codes and e-vouchers are now common at weddings and birthdays
• AI may soon personalise digital gifts further, changing future gifting

Not too long ago, gifting followed a familiar ritual. You walked into a store, spent hours hunting for the "perfect" present, wrapped it in shiny paper, tied it with a ribbon and handed it over with a smile.

Now, all it may take is a quick scan.

Recently, I attended a wedding where, instead of a table overflowing with neatly wrapped gift boxes, there was something rather unusual near the entrance, i.e., a beautifully designed stand carrying a QR code. Guests could simply scan it and send their gift digitally.

Soon after, it happened again. This time, at a friend's birthday. Instead of unwrapping boxes, she received a digital gift voucher on her phone—one that let her choose exactly what she wanted.

The more I looked around, the more I noticed the change. Gift vouchers are replacing last-minute shopping. E-vouchers arrive instantly on birthdays, anniversaries and festivals, while QR codes have quietly become part of everyday life in India. Whether it's buying vegetables, paying your chaiwala, splitting a dinner bill or now even sending a wedding gift, one small black-and-white square has transformed how money, and increasingly, gifts—change hands.

Naturally, I found myself asking a few questions. What's driving this shift? Is it simply convenience? Are Gen Z and millennials redefining how India celebrates? And when gifts go digital, does the emotional connection fade or does it simply find a new way to express itself?

To understand this changing culture of gifting, I reached out to experts who are watching the transformation unfold from the front row.

THE BIGGEST GIFT PEOPLE WANT TODAY IS CHOICE

For generations, gifting was about choosing something for someone.

Today, the focus is shifting from choosing a gift to giving people the freedom to choose.

Arvind Prabhakar, CEO of GyFTR, a digital rewards, payments and prepaid gift voucher platform, believes digital gifting is well suited to the expectations of today's consumers.

"Today's consumers value convenience, immediacy and flexibility, and digital gifting aligns perfectly with these expectations. Whether it's sending a gift card instantly to someone in another city or choosing a reward that lets the recipient pick what they truly want, digital gifting removes many of the friction points associated with traditional gifts."

That perhaps explains why gift cards, digital vouchers and app-based gifting have become common across personal as well as corporate occasions.

FROM NICHE TREND TO EVERYDAY HABIT

Digital gifting was once associated mainly with festivals or long-distance gifting.

Not anymore.

The rise of UPI, digital wallets and India's booming online commerce ecosystem has made sending a gift almost as easy as sending a text message.

Prabhakar says the industry has seen consistent growth over the past few years.

"The broader industry has witnessed strong growth in digital gifting over the last few years, fuelled by rapid digital payment adoption and increasing acceptance of prepaid instruments. At GyFTR, we have consistently seen growing demand for digital gift cards and e-vouchers across both enterprise and consumer segments."

What began as festive gifting has now expanded into employee rewards, customer loyalty programmes, sales incentives and even everyday celebrations.

Digital gifting is no longer just another category—it is quietly becoming a habit.

CORPORATE INDIA IS ACCELERATING THE SHIFT

If homes are changing slowly, offices are changing even faster.

Gone are the days when every employee received the same dry fruit box or coffee mug during Diwali.

Sourabh Deorah, CEO and Co-Founder of AdvantageClub.ai, a global AI-powered employee engagement and rewards platform, says the era of one-size-fits-all corporate gifting is quickly coming to an end.

"The shift to digital gifting is not only about convenience. It is about relevance. Employees today want recognition that fits into their life. They want choice. They want speed. They want the freedom to pick something that is useful to them."

The numbers suggest this isn't just a passing fad.

"Our data shows an 85-90% rise in digital gift preference over the last three years. This has been driven by higher technology adoption, younger workforce expectations and the need for flexibility in corporate rewards."

The shift is paying off. According to AdvantageClub.ai, organisations adopting digital gifting have reported an 82% increase in employee satisfaction while cutting gifting costs by nearly one-fifth.

GEN Z AND MILLENNIALS ARE CHANGING THE RULES

Every generation gifts differently.

For many parents, a thoughtfully wrapped present symbolises effort.

For Gen Z, the thought matters more than the wrapping.

Prabhakar believes India's youngest consumers are leading this cultural shift.

"Millennials and Gen Z are undoubtedly leading this shift. As digital natives, they prioritise convenience, personalisation and experiences over convention. They value giving recipients the freedom to choose what they want, making digital gifting both practical and thoughtful."

Deorah agrees.

"Our data shows that 88% of millennials and Gen Z employees prefer personalised gifting over pre-selected items. They have grown up with instant, digital and personalised experiences. Naturally, they expect the same from workplace recognition and gifting."

Interestingly, what began as a preference among younger consumers is now finding favour with older generations as well. After all, everyone likes receiving something they'll actually use.

FESTIVALS ARE BECOMING INCREASINGLY DIGITAL

Diwali lights still glow.

Raksha Bandhan still strengthens sibling bonds.

Birthdays still bring smiles.

Only the delivery has changed.

Prabhakar says festive occasions continue to drive digital gifting across the country.

"Weddings, birthdays and anniversaries are also seeing greater adoption of digital gifting, particularly when friends and families are geographically dispersed. Corporate festive gifting has also shifted significantly towards digital formats because they offer convenience, scalability and recipient choice."

For families spread across different cities, or even countries—a digital gift often reaches faster than a courier.

CAN A QR CODE CARRY EMOTIONS?

At first glance, a digital voucher may seem less personal than a beautifully wrapped gift.

But experts argue the opposite.

Prabhakar believes, "The emotional intent behind gifting remains unchanged. What is changing is the medium. Consumers increasingly recognise that a meaningful gift is one that is relevant and useful to the recipient."

Perhaps that's why customised gift cards, personalised notes and curated digital experiences are gaining popularity. The technology may be new, but the thoughtfulness remains the same.

Sometimes, the most thoughtful gift is simply letting someone choose what they truly want.

UPI QUIETLY REWROTE THE RULES OF GIFTING

India's digital payments revolution did much more than eliminate the need for cash.

It changed consumer behaviour.

Millions of Indians now instinctively scan a QR code to buy groceries, pay for auto rides or split restaurant bills.

Gifting was always going to follow.

As Prabhakar explains, "UPI has familiarised consumers with instant, secure digital transactions, while QR codes and mobile commerce have made digital payments part of everyday life. As a result, purchasing, sending and redeeming digital gifts has become almost effortless."

When the technology becomes invisible, adoption becomes inevitable.

THE FUTURE GIFT MAY BE CHOSEN BY AI

Digital gifting may just be the beginning.

Experts believe artificial intelligence will soon make the experience even more personalised.

Prabhakar says, "AI will play a significant role in helping consumers discover more relevant gifting options based on preferences, occasions and past behaviour. We also expect digital gifting to become more deeply integrated into payment ecosystems, loyalty platforms and everyday commerce."

Imagine never having to wonder what to buy again because your gifting platform already knows.

That future may not be very far away.

THE WRAPPING PAPER MAY DISAPPEAR, BUT THE THOUGHT WON'T

India isn't saying goodbye to beautifully wrapped presents. There will always be room for handwritten notes, surprise parcels and gifts exchanged with warm hugs. But increasingly, the country's love language is becoming digital too.

A QR code at a wedding. A gift voucher on a birthday. A personalised reward at work. A Diwali gift sent across continents in seconds.

The wrapping paper may be disappearing, but the emotion behind the gift remains exactly the same.

Because, in the end, gifting has never been about the wrapping. It has always been about making someone feel remembered.

And whether it arrives in a beautifully wrapped box or with a tap on a smartphone, every gift still says the same thing:

"I thought of you."

- Ends