The US gift card spend is significantly increasingly across the country.
On average, consumers in the US spent $59 more than the original value of their gift card in 2018. The is an increase of $21 from last year, according to a report by First Data.
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The study, which polled over 2,000 US consumers, found consumers preferring to give gift cards more than other gifts.
Consumers polled said that they were planning to spend 55% of their annual gifting budget on gift cards.
Moreover, 33% of buyers spent more on a gift card compared to a traditional gift card.
The average number of physical gifts cards bought by consumers rose to 8 this year. This is up from 6.5 in the previous year. At the same time, e-gift card purchases rose to 6.3 from 6.1 per year.
The study also found 52% of consumers preferring a single app to manage all their gift cards.
Besides, self-purchasing of gift cards was found to increase, with 64% of consumers buying a gift card for their personal use this year. In 2017, 58% of consumers opted for the same.
First Data senior vice president, head of gift solutions Dom Morea said: “Business owners continue to have a tremendous opportunity to drive sales, build their brand, and increase customer loyalty by investing in a robust gift card programme.
“Our study shows that gift cards, or branded currency, are not only a potential growth engine for businesses, but are becoming the preferred gift for both purchasers and receivers alike.”
