Payments provider Blackhawk Network reported results of a survey revealing 56% of consumers said they purchased a gift card during the 2024 holiday season, an increase of eight points from a poll conducted a year earlier.
The total average value of gift cards received also saw a jump, with surveyed consumers reporting the total value increased to $209 on average from $161 a year ago.
Flexible delivery options drove digital gift card purchases during the 2024 holidays and helped last-minute shoppers find gifts in a relatively short Thanksgiving-to-Christmas period, given the late Thanksgiving. After considering the virtual option, 49% of surveyed consumers said they had purchased digital gift cards this holiday, up five points over 2023. GenZers drove much of the increase, with 60% having purchased a digital gift card. Baby Boomers were twice as likely as younger generations to purchase digital gift cards at the last-minute.
Most consumers surveyed plan to spend their holiday gift cards in the first two months of 2025, including 83% of those who said they love using their gift cards to take advantage of post-holiday shopping deals.
Blackhawk noted holiday returns can be a Q1 sore point for retailers, but gift cards can lessen the pain. Of consumers who need to make a return, eight in 10 surveyed said they want gift cards when they bring back items; and 8 in 10 shoppers also reported that they plan to spend more than the value of gift cards. On average, consumers surveyed planned to spend $81 more than the value of their gift card, Blackhawk noted. In the survey, 22% of respondents said they needed to return a gift this year, up from 16% in 2023.
“In addition to demonstrable growth in gift card purchases, the industry saw increased demand for gift cards across a spectrum of use cases from promotions to returns, presenting unique Q1 opportunities for retailers,” said Jay Jaffin, Blackhawk chief marketing officer. “Gift cards not only encourage foot traffic and repeat business, but also enable merchants to acquire new customers who are eager to spend their holiday gift cards in the beginning of the new year. Our research also found that gift cards helped consumers alleviate some financial stress during and after the holidays. Seventy-four percent of consumers said purchasing gift cards assisted them in sticking to their holiday budget and 59% said receiving a gift card eases financial stress after the holiday shopping season.”
