Consumer Payment Card News

Gift Cards Forecast

Holiday gift card sales may dip to $25 billion this year, compared to $35 billion in 2007. A new survey also suggests that the restaurant/fast food category will sell more cards than any other category this holiday season. Connecticut-based Archstone Consulting says its survey found that consumers will spend less on gift cards this holiday season and will also shift their gift card spending towards household necessities such as groceries and gas or small indulgences such as dining at restaurants. But, teenage and post-college consumers will represent the
bulk of the increase in gift card purchases. Additionally, sales of gift cards through outside locations, such as grocery, drug stores, banks and kiosks are expected to grow significantly, by 30% versus 2007. Archstone also notes that pre-paid bank cards (Visa, American Express, Master Card, etc.) will continue to be the most desired by gift recipients this year as they were in 2007.

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