Consumer Payment Card News

Gift Cards

Among Americans that plan to buy prepaid cards as gifts this holiday season 24% will purchase three or four cards and totally spend about $100 to $200. A new CardTrak poll shows that 33% of consumers do not plan to buy gift cards this year and that 76% will spend less than $300 totally on their gift card purchases. However, 15% plan to buy more than seven cards and 10% expect to spend more than $600 on cards for the 2008 holiday season. Some recent surveys show that there will be pullback on gift card purchases this holiday season as the economy sours. Archstone Consulting projects gift card sales will dip 5% to $25 billion this season. Only 24% of consumers plan to increase their spending on gift cards in 2008, according to the survey. The NPD Group found that 38% of its survey respondents state they will buy a gift card this year, compared to 49% who said they purchased one last year. Deloitte’s “23rd Annual Holiday Survey” found that 66% of consumers surveyed plan to buy gift cards this holiday season, just slightly below last year’s 69%. Holiday shoppers are also planning to buy fewer cards on average: 5.3 cards this year, compared with the 5.5 cards they planned to buy last year. Reversing last year’s trend, consumers are also spending less in total on gift cards and less per card: $28.43 per card on average compared with $36.18 last year, Deloitte says.

CardTrak’s Holiday Poll

How many gift cards do you plan to purchase this holiday season?
None 33%
1-2 17%
3-4 24%
5-7 11%
7+ 15%

If you plan to purchase gift cards, how much will you spend in total?
$10-$50 26%
$51-$100 14%
$101-$200 22%
$201-$300 14%
$301-$400 7%
$401-$500 5%
$501-$600 2%
$6001+ 10%

Source: cardtrak.com (“www.cardtrak.com”:https://cardtrak.com)

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