The Untapped Power of Self-Use: A New Frontier for Incentive Strategy in the US
Gift cards have long been considered a reliable incentive, the go-to for rewarding employees, motivating customers, and recognizing loyalty. But a subtle shift is reshaping how people interact with gift cards altogether in the United States. It’s no longer just about giving or receiving. Increasingly, it’s about choosing.
Welcome to the era of self-use, where consumers are proactively purchasing gift cards for themselves. Not as last-minute gifts, but as smart, strategic tools to unlock rewards, manage budgets, and get more from everyday spending.
We’ve been tracking this trend closely, and our latest research, From Gifting to Gaining: How Gift Cards Have Become a Consumer Power Move, conducted by The Harris Poll, reveals that 4 out of 5 Gen Z and Millennial consumers used a gift card for themselves in the past year–a clear shift in behavior that has big implications for brands, employers, and anyone using incentives to engage people. And while it might feel like a departure from traditional incentive models, self-use actually opens the door to deeper, more meaningful engagement if you know how to harness it.
Let’s explore how this trend is evolving, what consumers want, and how incentive strategies can adapt to meet them in the moment.
What Is Self-Use and Why Is It Growing?
Put simply, self-use occurs when a consumer purchases a gift card for their own use, not to give away, but to benefit themselves. It’s a financially savvy move, often driven by inflation, convenience, and the increasing popularity of cashback programs.
According to our research, 70% of Americans purchased gift cards in the last 12 months for self-use, and 1 in 2 Americans used gift card purchases to earn cashback. It's important to note that this isn’t just about younger audiences treating themselves. Self-use spans age groups, income levels, and spending motivations from budgeting for essentials to unlocking loyalty perks.
What’s fueling the growth? A few key factors:
- Rising living costs: Gift cards help consumers stretch their money further with cashback and discounts.
- New financial habits: People are using gift cards to create spending limits, track budgets, and access rewards in real-time.
- Frictionless tech: With mobile wallets and instant delivery, digital gift cards are easier to use than ever.
In fact, on the Tillo platform alone, we’ve seen a 340% year-over-year increase in cashback-driven gift card transactions - proof that this shift is more than a blip. It’s a behavior change that’s redefining the role of gift cards in everyday life.
What Today’s Consumers Expect From Rewards
To understand the opportunity, it is essential to grasp the consumer mindset. Gift cards are no longer just rewards; they’re part of someone’s financial toolkit. And like any tool, they need to be easy to use, fast to access, and tailored to the task at hand.
Our research highlights what consumers value most:
- Ease of use (57%)
- Flexibility (51%)
- Convenience (41%)
- Security (37%)
- Personalization (22%)
- Eco friendliness (16%)
Ease and flexibility consistently top the list, particularly among younger consumers, who also place higher importance on personalization and eco-friendliness. They’re not just looking for any reward; they want one that works for them, right away, in the way they choose.
One of the biggest differentiators? Speed.
Traditional cashback models can take 60 to 90 days to process. In a world of same-day delivery and tap-to-pay, that feels glacial. With digital gift cards, rewards are instant - a consumer can earn cashback, claim a card, and spend it in-store or online, all before they leave the checkout queue.
And with 92% of Gen Z now using a mobile wallet, this expectation for speed and seamlessness isn’t going anywhere. If your reward can’t be stored, accessed, and redeemed in a few swipes or taps while on the go, it’s already a step behind.
How to Tailor Your Incentive Strategy for Self-Use
Here’s the good news: the rise of self-use doesn’t make traditional incentives obsolete; it just means they need to evolve. At its core, self-use reflects a consumer who is engaged, informed, and actively seeking value. That’s exactly the kind of behavior great incentive programs are built to support.
Here are three ways to adapt your strategy and unlock the potential of self-use:
1. Let the Consumer Lead
Choice is no longer optional. Consumers want to decide where, when, and how they use their rewards.
The solution? Build a reward mix that meets different needs:
- Closed-loop gift cards offer brand-specific value and exclusive perks.
- Open-loop prepaid cards, such as Tillo’s PrepaidPass, offer universal flexibility for everyday spending.
- Multi-brand gift card options, such as Tillo’s ChoiceLink, strike a balance by providing curated freedom while guiding consumer engagement.
By offering choice, you empower users, and empowered users are more likely to redeem, return, and engage again.
2. Deliver on Instant Gratification
When it comes to incentives, timing is everything. Consumers expect rewards to arrive when the moment is hot, not hours later, and definitely not weeks down the line.
That’s why it's essential to partner with a gift card platform or API provider that supports real-time delivery. The ability to send digital gift cards instantly at the exact moment a behavior is triggered transforms the experience from passive to powerful.
Whether it's an employee hitting a milestone or a customer opting into a promotion, delivering value in the moment helps to reinforce trust, create momentum, and build lasting loyalty. In a world of one-click convenience, incentives need to move at the speed of your audience or risk being left behind.
3. Meet Them on Mobile
Your reward shouldn’t live in a forgotten inbox or on a plastic card buried in a drawer. It should live on your customer’s phone, ready to use, always accessible, and never lost.
To meet this expectation, it’s essential to work with a gift card partner whose customer-facing solutions support mobile compatibility right out of the box.
A New Chapter for Incentives
Self-use is a reflection of how consumers value engagement today, and for incentive marketers, this opens the door to a more modern and effective approach, one that aligns with real behavior, rather than legacy models.
At Tillo, we help businesses of all sizes adapt to this shift. Our award-winning platform can connect your business to over 3,000 digital gift card options globally, all through a single, seamless API. Whether you’re building a loyalty program, launching an employee rewards platform, or creating a new cashback solution, we’re here to help you put the power of self-use to work.
Let’s reimagine what rewards can do - and who they’re really for.
Visit tillo.com or get in touch to explore how we can support your goals with smarter, self-use-ready solutions.