Tis the season for gift cards.
Gift cards remain a booming business, with 80% of sales still tied to physical cards, according to Givex President Brittain Brown. “A lot of that is due to the distribution that you see in retail,” Brown explained. Retail displays for national brands account for roughly half of gift card sales, showcasing their enduring popularity.
Second Choice
According to the Givex 2024 Holiday Gift Card Survey, credit card gift cards continue to dominate as the most popular gift card choice for the holidays, favored by 70% of respondents — up 6% from last year—followed by restaurant gift cards at 46%. This holiday season, 70% of consumers cite inflation as a ”significant factor” on their holiday shopping. On average, Americans plan to spend $136 on gift cards this holiday season.
According to Givex’s research during Black Friday through Christmas Eve 2023,
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Total gift card value sold was up 12.36% from the previous year.
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The total quantity of gift cards sold increased by 8.85%.
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39% of all gift card sales for the year occur between Black Friday and Christmas Eve.
Meanwhile, digital gift cards are gaining traction, especially with younger demographics who prefer mobile wallets for their convenience and ease of use.
Blurring the Lines Between Gift Cards and Loyalty
Gift cards are evolving beyond basic transactions to become tools for engagement and personalization. Brown noted how gift card registration enables customers to share their data, unlocking targeted promotions and personalized offers via email.
Related: The 3 Ways to Elevate Your Gift Card Sales
Additionally, advancements in integration technology allow gift cards to trigger exclusive discounts or promotions based on spending habits. “It’s not just about activation and redemption anymore,” Brown explained. “Gift cards can now drive loyalty-like behaviors and deliver greater value through smarter technology.”
Streamlined Tech Integration
For restaurants and retailers, the key to seamless gift card programs is robust integration technology. “At Givex, we’ve prioritized ensuring compatibility with all major point-of-sale systems and payment processing terminals,” Brown said. This approach makes gift cards a simple plugin for merchants, avoiding extensive system overhauls.
