Friday , September 29, 2023

Consumers Will Increase Gift Card Purchases in 2022, a Fiserv Study Says

Despite rampant inflation and supply-chain shortages that have made certain products hard to come by, gift cards, whether they are physical or digital, remain popular with consumers. Indeed, 58% of consumers plan to purchase more gift cards as an alternative to tangible products due to inventory shortages in 2022, according to Fiserv Inc.’s Q1 2022 Gift Card Gauge. At the same time, 46% of consumers view gift cards as their “go-to” alternative to tangible gifts.

Fiserv, which conducts the study quarterly, surveyed more than 1,000 U.S. consumers age 18 and older.

Consumers purchase gift cards in connection with what they consider milestone events, such as anniversaries. In the survey, birthdays ranked as the most popular such event for git card giving, with 57% of respondents saying they plan to purchase a gift card as a birthday present in 2022. Graduations were next, with 37% of respondents saying they intended to give a gift card as a graduation present. 

At the same time, 37% of respondents said they intended to give a gift card as a way of saying thank you to someone. Giving a gift card during the holiday season remains popular, with 33% of respondents saying they are likely to purchase a gift card during that time. Overall, 72% of respondents say that gift cards are an appropriate gift for milestone events. 

When it comes to the form gift cards take, physical gift cards remain quite popular with consumers. A key reason is that 65% or respondents say they feel physical gift cards are not likely to be fraudulent. Overall, 19% of respondents say they plan on buying more physical gift cards than in previous years. In comparison, 16% of respondents plan on buying more digital gift cards than in previous years.

Physical gift cards are also viewed as appropriate items to mark a milestone event, with 51% of respondents agreeing with that idea.

Visa Inc. and American Express Co. gift cards are the most popular brands, with 20% of respondents saying they plan to purchase at least one of those branded gift cards in the coming year. Gift cards from online merchants, such as Inc. and eBay Inc., were the second most popular brand (18%), followed by gift cards from discount/big box retailers such as Walmart Inc. and Target Corp. (13%), and from coffee shop chains, such as Dunkin Donuts and Starbucks Corp. (12%). 

Finally, gift card promotions are expected to drive sales in 2022. Of the consumers surveyed, 62% say they plan on taking advantage of a promotion in 2022.

What type of promotions motivate consumers to purchase gift cards? Some 33% cited having a bonus amount added to the card, while 28% cited having a bonus gift with the purchase of a card, and 24% said receiving a free item with the card purchase.

Check Also

Shift4 Looks to Bring Amazon’s Just Walk Out Checkout to Stadiums And Other Venues

Shift4 Payments Inc. announced Thursday it is integrating Inc.’s Just Walk Out technology into …

Digital Transactions