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Money has completely evolved beyond notes and coins. Today, online payments and virtual currencies have changed how people exchange value; gift cards are at the center of that transformation.
If you walk into a major retail store or browse any global online marketplace, you will probably come across gift cards displayed as either a payment method or simply available for sale as a gift. And for good reasons, they are smart, convenient, and easy to use. This often raises questions like: “Are gift cards now the same as cash?” Not quite.
While both can be used for transactions, they serve different purposes and come with their own rules, limitations, and benefits. This article explores the clear difference between cash and gift cards, their pros and cons, and how to make the smartest choice based on your needs.
Cash vs Gift Cards: The Difference
1. Personalization
Everyone prefers receiving personalised gifts to a generic present. Often, an inherent advantage depicts a certain amount of individuality and demonstrates that the giver of the gift gave some consideration to your likes and dislikes.
Gift cards like Sephora gift cards, Steam gift cards, iTunes gift cards, and Amazon gift cards are a few of the wide range of gift cards we have in the gift card market. In other words, there is a gift card for practically any consumer good, whether it be clothing or video games—making gift cards a better option than regular gifts.
You can also make your gift cards unique by creating them with visually appealing photos or writing. For instance, an iTunes gift card can be given with a specific colour scheme and design, like a Pink Floyd template. As such, gift cards can broadly be individualised and used for entertainment, shopping, hotels, etc.
Meanwhile, the use of cash is devoid of the preference for the receiver. It is meant to serve as a monetary for the affordability of what it can cover over a certain time and space. Therefore, cash does not adequately represent the personality of the recipient(s) in most cases.
2. Special And Memorable
When was the last time you received cash as a gift, whether for a birthday or a wedding? Since this tends to be a recurring theme, you probably can’t move, but if it’s a gift card, you probably can. A gift card can be used anytime you like and exclusively for premium items in addition to being personalised. When we receive money, we typically spend it on other things.
Gift cards are significantly more remarkable because the giver must have given some attention to your preferences before buying them; this demonstrates their knowledge of you and their potential to extend relationships beyond their current state. So while gift cards bring an overwhelming satisfaction of a heart-cheering gift, cash only shows a conservative poise of meeting a want.
3. Additional Discounts
Your chances of receiving additional discounts from your purchase at a specific store rise if you have a gift card.
For instance, when you have an Amazon gift card, you can stand a chance of enjoying amazing discounts being offered to customers using the Amazon gift card than other customers using cash for their purchases. Amazon occasionally offers discounted deals. Users of Amazon gift cards can get up to 60% off of some items. The mechanism was put in place expressly to encourage the use of gift cards.
4. Incentive
From a corporate perspective, gift cards are preferable to cash. Consumers prefer gift cards to cash as incentives, according to numerous studies.
Gift cards were the most well-liked prize items in the product category, according to research by the Incentive Federation, which found that travel- and merchandise-related incentives were more alluring than cash. Approximately 70% of the respondents agreed that using items and gift cards rather than cash would enable them to create a more exciting and memorable program.
There is no greater gift than a gift card if you want to motivate someone. It not only makes for a far more memorable gift, but it also improves productivity at work. Gift cards serve as a bragging right and an incentive in workplaces.
It only draws attention to an employee’s performance, but the employee can use a gift card instead of extra cash that would have gone toward paying bills. It is then safe to say gift card is far more discrete and professional when it is offered as a gift.
Also, the difference between cash and gift cards is the availability of a wide range of options for gift cards when it comes to giving gifts to the recipient. You can choose from gift cards that are tailored to specific products to access. In converse, cash might not necessarily be seen as an incentive because of the lack of its specifics in value.
5. Budgeting
Gift cards can be used to keep an eagle eye on your spending. You can purchase a gift card from a particular retailer to help you stop overspending there if you are habitual of impulse buying or spending beyond your budget.
For instance, you can get a $100 Sephora gift card to put your monthly clothing budget within that limit. This, in turn, makes it easier for you to set aside specific money for this purpose and prevents you from having to dip deeply into your cash every time you want to make a purchase, which could allow you to go over your budget.
Meanwhile, gift cards are always seen as prepaid cards with stored value, although most of their users sell them to make some cash. To this end, there is nexus of gift cards to money, even as the global gift card market continues to boom. So this begs the question, where can I sell my gift cards in Nigeria or Ghana?
Prestmit is the best gift card trading platform where you can sell various cards for the best gift card rates. Trading on this platform is fast, easy, and secure, with the customer-centric interface and security infrastructure to make your trade on the platform a relishing experience.
Cash vs. Gift Card – The Pros and Cons
Cash
Pros
Cash is the oldest and most direct form of money. It is accepted everywhere, doesn’t have restrictions, and gives you total control over your spending. Cash remains king when flexibility and instant usage are important, from buying groceries to paying for a ride. There is no need to worry about expiration dates, platform limitations, or hidden terms.
Cons
However, cash has its downsides. It can be easily lost or stolen; once it is gone, there is no way to recover it. It is also not useful for online shopping, where digital payment is required.
Gift Cards
Pros
Gift cards provide a different type of convenience. They are prepaid cards loaded with a certain amount and can be used online or to shop in specific stores. They make it easy to give gifts because you don’t have to worry about choosing the right item.
Cons
Most gift cards can only be used within certain platforms or locations. Some may expire or charge extra fees. And if you are trying to turn them into cash, there is a high probability that you might not get the full value back.
So, while cash gives you complete spending power, gift cards provide a more controlled, brand—or store-focused experience. Choosing between them depends on your goals for shopping, gifting, and other convenience uses.
Where to Trade Gift Cards – Prestmit
If you are looking to convert your gift card to real cash, Prestmit is one of the best platforms for that. Known for its fast, reliable, and user-friendly systems, Prestmit is the go-to marketplace for trading popular gift cards like Amazon, iTunes, Google Play, Steam, and more.
What makes Prestmit stand out is its transparency and ease of use. The mobile App and website display real-time gift card rates calculator, which can be used to check the worth of your gift card before trading. Prestmit ensures that your trade is safe, smooth, and stress-free.
How to Buy Gift Cards on Prestmit
- Visit the official Prestmit website or download Prestmit App from Google Play Store or Apple Store.
- Create an account and log in to your dashboard.
- Click on “Gift Card” and choose “Buy Gift Card”.
- Choose the gift card you want to buy from the list and select your gift card type.
- Enter the amount you want to buy.
- Select your payment method (Naira, Cedis, Crypto, or Bank Transfer)
- Proceed to complete your transaction.
- You will receive your gift card in your email immediately after the transaction is confirmed.
How to Sell Gift Cards on Prestmit
Follow these simple steps to convert your gift card to immediate cash or crypto:
- Go to the official Prestmit website or download the Prestmit App from Google Play Store or Apple App Store.
- Create a Prestmit account or log in to your existing account.
- On your dashboard, tap “gift card” and choose “Sell Gift Card”.
- Choose your preferred payment method – Naira, Bitcoin, or USDT.
- Select the gift card type under the listed categories
- Enter the amount of the gift card you want to sell.
- Upload a clear image of the gift card or type the code.
- Follow the prompt to submit your card for verification.
- Once your card is confirmed, you will immediately receive payment in your selected wallet.
Frequently Asked Questions (FAQs) On Differences Between Cash and Gift Cards
Can I convert a gift card into cash?
Absolutely. You can sell your gift card for cash on reliable platforms like Prestmit. Once the card is verified, you get your payment in minutes.
Which is better between cash and a gift card?
Each has its advantages. Cash gives you more freedom to spend anywhere, while gift cards are perfect for specific purchases, rewards, or gifts.
How long does it take to get paid after selling my gift card?
Payment is made instantly after verifying your gift card. Most transactions are completed within minutes on Prestmit.
Do I need to verify my account before selling gift cards?
Yes, you must verify your account before making any transactions for safety and compliance reasons.
Conclusion
Both cash and gift cards have their place in the modern economy. While cash gives you the freedom to spend anytime or anywhere, gift cards provide a convenient and thoughtful way to shop or gift, especially online. Digital transactions are becoming the norm, so knowing how to trade and make the most out of both options is essential.
And if you’ve got unused gift cards you want to exchange for cash or buy one for someone, now you know what to do and the best place to go.
Last updated on June 25, 2025
