As the 2024 holiday season approaches, gift cards are emerging as the preferred choice for many consumers. Financial constraints, increased credit card payments, and inflation are driving shoppers to opt for gift cards over traditional presents. A survey by Blackhawk Network revealed that consumers plan to spend 48% of their holiday budgets on gift cards, up from 39% in 2023. This trend is especially pronounced among Gen Z and millennials, with 54% planning to buy gift cards, compared to 41% last year.
Gift cards have become more valuable than ever, with many using them to cover everyday expenses like groceries, according to Fiserv’s research. Digital wallets further enhance their appeal, offering convenience and the ability to earn rewards. Retailers benefit from increased foot traffic and customer loyalty through promotions tied to gift card purchases, while consumers enjoy hassle-free shopping and the ability to leverage loyalty points for personal purchases. Despite financial pressures, 33% of survey respondents plan to spend more on gifts in 2024, signaling a robust holiday season ahead.
