Consumer Payment Card News

Xmas Gift Cards

A new study has found that consumers are holding $9 billion in unredeemed value on gift cards received during the holidays. The research also found that gift cards generated about $18 billion in retail sales during December and January. According to the report by Deloitte & Touche, adults received 3.2 gift cards during the holiday season just ended, compared to 2.5 one-year ago. This year’s 3.2 cards had a total face value of $142.98. More than six out of ten gift cards received by adults had been fully or partially redeemed by the end of January. General purpose, or bank-issued gift cards, were the type most likely to have been used by the end of January. Nearly three-quarters of these cards have already been fully or partially redeemed. Deloitte & Touche said that if consumers continue to spend unredeemed cards in a similar fashion as they did in December and January — that is, some consumers purchase more than the face value of their cards — then the unredeemed gift cards of $9 billion could have the potential to add as much as $13 billion to retail sales.

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|_. Store: | 80% |
|_. Restaurant: | 33% |
|_. Mall: | 14% |
|_. General Purpose: | 10% |
|_. Personal Service: | 5% |
|_. Internet Site: | 5% |
|_2. Source: Deloitte & Touche |

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