Gift card spending is bouncing back with 69% of consumers buying the same amount of gift cards or more in 2023 compared to 2022.
That's a top finding from Fiserv's 21st "Annual U.S. Prepaid Consumer Insights Study," which also revealed 85% of consumers are joining loyalty programs. The study polled more than 1,100 consumers in November, 2023.
The data also revealed gift cards are fast becoming a channel to drive customer loyalty, according to a press release on the findings.
Additional highlights include:
- Incentive and loyalty programs are the primary reason most (55%) consumers buy gift cards for themselves.
- While banking, purchasing and even some credit cards have gone completely digital, consumers are hesitant to give up on physical gift cards.
- While consumers often visit multiple retailers for tangible gifts, the same cannot be said for gift cards. In fact, 47% of consumers note they prefer to purchase gift cards from businesses that sell a large variety of gift cards; and only 34% buy gift cards from the merchant it will eventually be redeemed at.