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New data reveal how ease of access and thoughtful design drive gift card success.
In today’s busy world, convenience isn’t just appreciated, it’s expected. Whether we’re ordering groceries, booking a ride, or sending a last-minute birthday gift, we want it done fast, easy, and without hassle. That’s why gift cards have quietly become one of the most practical, versatile tools in the retail and payment landscape.
Once viewed as a fallback for forgetful shoppers, gift cards have earned their place as a go-to choice for consumers who value flexibility and speed. They’re simple, often customizable, and increasingly woven into both everyday spending and special-occasion gifting. And, according to new data from InComm Payments’ Gift Card Year in Review annual report, convenience is the driving force behind consumer decisions on what types of cards to purchase and where they prefer to buy them.
That means opportunity—not just for retailers, but for the entire payment ecosystem. The brands and platforms that make gift cards easy to find and purchase are better positioned to win consumer loyalty and boost sales.
Research Results
Here are some of the insights from this latest report. They can guide payments companies, brands and retailers in working together to better serve gift card shoppers.
The report’s key finding is that convenience is a primary driver of most gift card purchases. Among consumers who participated in the survey, 62% of open-loop gift card shoppers and 59% of closed-loop gift card shoppers listed convenience as the top factor influencing their decision to buy.
And when we say “convenience,” that can mean a few different things to shoppers:
- A convenient product: Gift cards that are easy to buy, easy to give and easy to use.
- A convenient retail location: Gift cards are available at a wide range of stores.
- A convenient shopping experience: Gift card displays are in high-traffic areas.
High-traffic areas like checkout counters, promotional shelves, endcaps, and holiday displays are prime real estate. Visibility here turns routine shopping into a gifting opportunity. Online, it’s all about digital visibility: home-page placement, search optimization, and checkout integration.
When gift cards are front and center—physically or digitally—consumers don’t have to think twice. It’s a small change that makes a big difference. And payment processors, brands, and retailers that view gift cards as a core offering are likely to see stronger performance and more consistent engagement. During the holidays, Mother’s Day, or back-to-school, a well-placed, well-promoted gift card promotion can make all the difference in capitalizing on foot traffic or Web-page traffic.
And gift cards shouldn’t just be convenient for the buyer. They should also be equally simple for recipients—easy to redeem, track, and spend, however they choose. That full-circle experience is what will keep people coming back for repeat purchases.
Sure, gift cards are clutch in a pinch. But a growing number of consumers aren’t waiting until the eleventh hour. They’re planning ahead, stocking up during promotions, and setting reminders for key holidays.
According to InComm Payments’ report, 68% of gift card shoppers said they plan their purchases in advance. That’s why, now more than ever, it’s crucial that these thoughtful, forward-thinking shoppers can get the gift cards they want, when and how they want them.
Keys to Growth
For payment providers and their partners, this opens the door for smarter, more strategic engagement. A well-timed bonus offer, early-bird promo, or loyalty reward can be just the nudge a planner needs. And when it’s easy to personalize a digital card or schedule delivery? Even better.
If you want your gift card program to grow, make it as easy and frictionless as possible. Here’s where to start:
- Make gift cards visible.
High-traffic displays in-store. Prominent placement online. Seasonal signage. Gift cards shouldn’t be an afterthought.
- Rewards planning.
Offer bonuses for purchases. Promote seasonal bundles. Tie gift cards into your loyalty program.
- Enable collaboration.
From group gifting to shared balances, flexibility goes a long way. Simple tools for joint purchases can set your program apart.
- Clarify the experience.
Be upfront about how to redeem, where to use, and how long cards last. No one wants to second-guess a gift.
- Own your space.
Work with planogram experts to ensure arrangements properly align across main gift card aisles, checkout lane pegs, and departmental or seasonal displays. Make sure cards are easily seen as customers navigate high-traffic areas.
A Payments Power Tool
Here’s the big idea: When it comes to gift cards, convenience matters. A lot.
Consumers are telling us what they want: flexible, fast, friction-free gifting. Now it’s up to brands, retailers, and payment processors to meet them there. And when they do? Gift cards won’t just thrive in a silo, they’ll be a key driver of business.
After all, gift cards generate foot traffic. They spark incremental spend. They bring new customers into ecosystems and help ensure loyal ones return. When integrated thoughtfully, gift cards become part of a broader payments strategy, fueling promotions, loyalty, and branded experiences.
In a world where every moment matters and every click counts, the gift card stands out as a smart, simple solution. The challenge (and opportunity) for the payments industry is to make sure it’s always within easy reach.
Convenience isn’t just a nice-to-have. It’s the reason people buy—and the reason they keep coming back.
—Tammy McGill is director of market research at InComm Payments.
