Over $35 million of unused gift cards sitting in Canadian wallets

Stittsville resident Pam Lockhart has an overflowing wallet filled with unused gift cards. Over the course of the last couple of years, Lockhart has collected more than 60 gift cards, amounting to an estimated value of $2,000.

"It's a bit overwhelming," says Lockhart. "It's a bit exciting and a bit overwhelming."

With numerous businesses closed during the pandemic and limited opportunities for spending, Lockhart, like many others, found herself with little time or chance to utilize the gift cards.

"I always appreciate gift cards because, I mean it's better than somebody giving me a toy that my children aren't interested in, but I mean I really just don't have time to use it," she says.

Pamela George, CEO and Financial Literacy Councillor of Sand Dollar, says there is no reason to hold on to gift cards for a rainy day.

"So many companies are going out of business. You could have a bunch of cards, and there's nowhere to cash it in," says George. "So use your card. If there's any time you should be cashing in on those cards, it's now. With the high inflation, high groceries, high everything, use it now."

Wendy Toyoda, Square Gift Cards Product Marketing Manager, notes an interesting trend. While the unredeemed balance of physical gift cards has remained relatively stable year over year, the balance of unredeemed digital e-gift cards has actually decreased. Toyoda suggests that the rise in e-gift card sales, particularly since 2020, indicates a growing preference for this convenient and versatile form of gifting.

According to Square, approximately 40 per cent of activated gift cards in Canada have yet to be used. The cumulative value of these unused cards amounts to a staggering $35 million sitting idly in Canadian wallets.

Toyoda adds, "There is a rise in e-gift card sales, especially since 2020, and we really haven't seen it slow down since then. It's still becoming a more and more common way to give gifts."

While most gift cards in Canada have no expiration date, it is important for recipients to read the fine print to make sure.

There should also be no unexpected charges for activation or usage. Additionally, taxes are only applicable when spending the money on the gift card, not during its initial purchase.

As for Lockhart, despite the mounting number of unused gift cards, she remains optimistic about eventually putting them to use.

"I'm just happy to have them and to know that when we do want to go to the movies or go to extreme trampoline or go out for dinner, we've got money to spend."