Retail Gift Card Use Is Back on the Rise

Retail Gift Card Use Is Back on the Rise

July 13, 2017         Written By Bill Hardekopf

Retail gift card use saw an increase in 2016, marking a much-needed rebound from the decline in 2015, according to a new report from Research and Markets. The study focused mainly on closed loop gift cards—those that can only be used for a specific store.

Many closed loop gift cards are reloadable, giving consumers a chance to add more money to a card after they have already used it. The study showed that virtual card load volumes remained consistent, but mobile loads increased from one year to the next. Research and Markets says card reloads have “become a significant part of the market” with regards to the total volume of gift cards in the United States.

The researchers could not identify what sparked the increase in gift card purchases and loads, but they believe e-commerce played a large role. Last year, InComm released a survey that showed a dramatic increase in digital gift cards. A staggering 89% of respondents said they had purchased two or more gift cards online or on their phones, compared to 72% the previous year. 96% said they were interested in storing gift cards on their phones for personal use, which aligns with a November 2015 survey from Blackhawk Network. That survey found 86% of consumers kept eGift cards for themselves.



The information contained within this article was accurate as of July 13, 2017. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.


bill-hardekopf

About Bill Hardekopf

Bill Hardekopf is the CEO of LowCards.com and covers the credit card industry from all perspectives. Bill has been involved with personal finance for over 15 years. He is a frequent contributor to Forbes, The Street and The Christian Science Monitor.
View all posts by Bill Hardekopf
Featured Low Interest Card
Top Features : 1.25X miles on every purchase; no annual fee; bonus of 20,000 miles once $1,000 is spent in first 3 months
Featured No Annual Fee Card
Top Features : Earn cash back twice. 1% when you buy plus 1% as you pay; 0% APR for 18 months on balance transfers
Featured Bad Credit Card
Top Features : No Annual Fee; Cash Back match at the end of your first year; Social Security Alerts
Featured Fair Credit Card
Top Features : No annual fee; access to higher credit line after making first 5 monthly payments on time
Featured Limited/No Credit
Top Features : No annual fee; reports to major credit bureaus; access to higher credit line after making first 5 monthly payments on time
Featured Cash Back Card
Top Features : No Annual Fee, Bonus Offer, Cash Back