For Many Consumers Gift Cards Remain Their Preferred Gift, a Fiserv Survey Says

Sales of gift cards in the United States remained steady in 2021, with 73% of consumers purchasing the same number of cards, or more, compared to a year earlier, says a report from Fiserv Inc. 

Online merchants were the biggest beneficiaries, with 53% of respondents saying they purchased a gift card from e-commerce pureplay merchants. Gift cards from big-box/discount store retailers were the second most popular, with 49% of respondents purchasing those cards. Gift cards to coffee shops ranked third, attracting 41% of respondents. 

Fiserv, which conducts the study annually, in December surveyed more than 1,000 U.S. consumers aged 18 and older. 

Among specific retailers, Amazon gift cards are by far the most popular, with 56% of respondents saying they would buy a gift card from the e-commerce giant. “Clearly, convenient, contactless, coronavirus-less shopping—plus other benefits–keep the retail behemoth on top as more than half of consumers would choose Amazon gift cards,” the report says.

Target and Starbucks cards were the next most-popular retailer branded cards, with 9% of respondents saying they would purchase one of those cards. Walmart cards were the next most popular (6%), followed by Apple gift cards (3%). While not a retailer specific card, 17% of respondents said they favor Visa branded gift cards. 

As for the reasons consumers purchase gift cards, holidays (63%) and special events (60%) are the most popular answers (more than one response was permitted). Birthdays are the most popular reason for giving a gift card. Some 65% of respondents said they gave a gift card as a birthday present, up from 31% in 2020. When it comes to gift giving during the winter holidays, 41% of respondents said they gave a gift card in 2021, up from 38% a year earlier. 

Digital gift cards proved popular because of immediate delivery (cited by 77%), easier to send (62%), and easier to purchase (50%).

Despite the growing popularity of digital gift cards, a large portion of consumers still favor giving physical cards because they are a tangible gift (61%), allow the recipient to unwrap a gift (46%), and are easy to give and use (39%).

When asked what innovations they would like to see from gift cards in the future 55% cited a gift card to be used at any local restaurant, 43% said an e-gift card that can be delivered immediately, and 35% said a mobile platform that could house all of their gift cards.

“Merchants are always looking for ways to improve the customer experience, and often do so through innovation. Gift cards are no exception,” the report says. “We’ve seen a recent wave of gift card innovations, including scheduled delivery, full customization of digital gift cards including the use of personal photos, and even slightly nicer packaging with high-level brands.”