I was adding cards to wallet and this option came up. Is this new or have I been missing something?
May 2022.
I do not get this concept. Why would you want to buy a physical “gift card”, add it to your wallet and then show your wallet to pay via this card in an Apple Store? Weird. I might miss something here. No idea.
It would probably be a little weird to use it to pay at an Apple Store, but it ALSO works for the App Store, Apple’s services, etc. And I can see somebody adding money to it up to a certain amount as a brake on unexpected subscriptions, purchases, etc.
In that case the Wallet would be more about tracking it than using it to pay at an Apple retail store.
I have added gift cards from Apple to my App Store account in the past . I have not done that in recent months because those cards are not available at a discount any longer.
The thing is that I do not get why adding this card to the wallet does do me any good. If I want to use it in the Apple Store, I just have to present the card and if I want to use it for whatever else like Apple services, I just redeem the card to my account. I might be missing something. I don’t know.
Yeah, those good old times are gone, unfortunately forever… 
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I would suppose that it’s just one less physical thing to keep track of. Put it in the wallet when you get the card, then you can copy/paste the number from your phone. It’s not a huge benefit, but it’s something that I’d totally do.
I hate keeping track of physical cards if I don’t have to.
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It did not work that way for me. I usually keep a balance in my Apple ID store account, but the one time I did not, the difference was silently made up from my (Goldman Sachs) Apple Card.
It’s not meant to do you any good. Gift cards allow the issuer, in this case Apple, to earn money on the unused balance. In the U.S. the total of all unused gift cards was around $ 20 billion earlier this year.
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