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The United States economy is being affected by supply chain problems and suffering a growing shortage of products.
Companies like Apple, has also cut its production, and is encouraging for consumers to give away gift cards to ensure that most households count gifts under the Christmas tree.
According to a survey conducted by the payment service Blackhawk Network, Consumers plan to increase gift card spending by 27% during these holidays , until reaching an average of $ 270 dollars per person. This increase will make the cards represent the 40% of total gift purchases .
Gift cards have traveled a long way from being an offering for a distant relative or the head of the company to being what many Americans want the most, especially the younger ones.
For the giver, the cards also eliminate the anxiety of choosing an item for a friend or family member in the endless aisles of the Internet. Around the 75% of millennials prefer to receive gift cards over physical gifts , according to Blackhawk.
The gift card market
The global prepaid card sector exceeded $ 2 trillion last year thanks to the increase in gift cards , according to Global Industry estimates Analysts.
With this accelerated growth, the market should reach $ 4.1 trillion in 2027, a 50% more than the company’s estimate before the pandemic.
Retailers are also using more and more credit cards. gift to attract new customers and be able to boost purchases beyond December and can be extended until January and February.
Also, gift cards increase sales because shoppers tend to spend more of what they are worth . And if they don’t redeem all of the value, that’s good for the bottom line of the retailer.
According to Blackhawk, consumers spend a 40% more than the value of a gift card .
Gift cards were first adopted by department stores in the decade of 1930 and boomed when retailers switched to plastic vouchers in the decade of 1990. Today, more than half of US retailers offer them.
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