Self-Use of Gift Cards in the United States
- Date:September 15, 2016
- Author(s):
- Ben Jackson
- Research Topic(s):
- Prepaid
- PAID CONTENT
Overview
A research note from Mercator Advisory Group titled Self-Use of Gift Cards in the United States looks at the growing trend of shoppers buying gift cards for themselves.
Retailer gift cards are one of the most popular gifts in the United States, but it turns out they are an increasingly popular self-use tool, whether as a way to treat one’s self, budget money, or take advantage of rewards programs.
The research note looks at evidence from Mercator Advisory Group’s consumer and retailer surveys that show how the self-use market is growing. It also examines use of digital (or virtual) cards by self-gifters and the benefits to retailers.
"Gift card issuers should consider the value of their gift card programs as more than just a way for customers to give presents; the cards can also serve as a branded currency," Ben Jackson, director of Mercator Advisory Group's Prepaid Advisory Service, and author of the report, comments.
Companies mentioned in this document: Hannaford Supermarkets, Delhaize America, and Toys ‘R’ Us.
Highlights of the report include:
- The percentage of gift card buyers who say they have purchased a gift card for self-use has steadily climbed since 2013.
- Card buyers are more likely to use digital cards if they are buying them for self-use than if they are buying them as a gift.
- Reload data shows there is a steady portion of loads coming in from people using prepaid/gift cards to which they add funds over time.
- Retailers can save significantly if customers use prepaid cards as a branded currency, and they should design their programs to help customers to do so.
Learn More About This Report & Javelin
Related content
2025 Prepaid Payments Trends
In 2025 and beyond, look for security enhancements, bigger B2B applications, and increased healthcare uses of prepaid products.
21st Annual U.S. Closed-Loop Prepaid Card Market Forecast, 2024-2028
Closed-loop prepaid programs continue enjoying strong growth across the breadth of the industry. In this annual report, Javelin Strategy & Research takes a look at the market for c...
2024 Prepaid Regulatory Update: Playing by the Rules
Javelin’s annual update covers how economic and regulatory issues are affecting the prepaid card market. This report covers direct and broad-scale regulatory changes occurring in 2...
Make informed decisions in a digital financial world