Table of Contents

• Consumer Trends

• Case Studies

• Legislation Corner

• Interesting Articles

📈 Consumer Trend Of The Week

Why do consumers prefer holiday gift cards?

Holiday gift cards have become a cornerstone of consumer behavior, particularly during the holiday season, due to their versatility and practicality. Shedding light on why holiday gift cards have become a preferred choice for gift-givers. A significant 72% of consumers choose gift cards because they enable recipients to buy a preferred gift, emphasizing the appeal of personalization and flexibility.

This underscores the modern shift toward empowering recipients with choice, avoiding the risk of gifting something unsuitable. The convenience of gift cards aligns perfectly with a growing demand for thoughtful yet practical gifting options, especially during the holiday season when finding the "perfect gift" can be a challenge.

In addition, 41% of respondents cited the ease of ordering, wrapping, and giving gift cards as a driving factor. With the rise of e-commerce and digital wallets, gift cards have evolved into a seamless gifting solution, eliminating logistical challenges while maintaining thoughtfulness. Interestingly, 33% of consumers admitted to buying gift cards because they didn’t know what to purchase. This highlights how gift cards act as a fail-safe option, catering to diverse recipient preferences without the guesswork. These behavioral insights underline the strategic importance of offering customizable, easily accessible, and attractive gift card solutions to capture consumer interest and drive holiday sales.

📈 Seasonal Insights

Gift Cards: Still a Holiday Heavyweight, But Preferences Are Shifting

Gift cards remain a holiday staple, but new data shows subtle shifts in how they’re gifted and received. In 2024, 55% of U.S. adults received at least one gift card—down slightly from 58% in 2023. Gen Z and Millennials continue to dominate as top recipients, with nearly half of 18–24-year-olds receiving a gift card. However, the trend of gifting multiple cards is on the decline, as consumers opt for fewer, high-value cards.

For brands and M&A professionals, this indicates evolving preferences. The opportunity lies in crafting rewards programs that resonate with younger demographics while addressing the demand for simplicity and value.

💡 Case Studies

The Gift Card Playbook: Engagement Made Simple

Gift cards have stood the test of time for one reason: they work. They’re simple to use, flexible across markets, and universally appreciated by recipients. Perfect for driving customer loyalty, employee rewards, or promotional campaigns, they check all the boxes for a great incentive. Digital gift cards, in particular, shine for their speed and convenience, making them a modern favorite.

For example, Amazon Gift Cards leverage the retail giant’s global reach and seamless user experience to deliver exceptional value. With nine out of 10 shoppers checking Amazon for prices, these cards tap into a familiar, trusted brand, ensuring engagement and satisfaction. Their flexibility supports a range of strategies, from localized promotions to global incentive programs.

If you’re looking for an incentive tool with maximum impact and minimal hassle, gift cards are the clear winner.

🏛️ Legislation Corner

Card Act - The Ultimate Gift Card regulator

The Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act) plays a crucial role in regulating the use of gift cards, ensuring transparency and consumer protection. Governed under Regulation E and enforced by the Consumer Financial Protection Bureau, the CARD Act covers three types of instruments: gift certificates, store gift cards, and general-use prepaid cards. These instruments, issued primarily for personal, family, or household purposes, must adhere to strict rules regarding fees, expiration dates, and disclosures. For instance, dormancy or inactivity fees cannot be imposed unless specific conditions are met, and gift cards cannot expire earlier than five years after issuance. Companies wishing to apply expiration dates or fees must clearly disclose this information upfront, along with a toll-free number or website for consumer inquiries. Notably, state laws may impose even stricter regulations, making compliance a multi-layered challenge for businesses operating in the gift card space.

Certain instruments, however, are excluded from the CARD Act, such as promotional or loyalty cards, merchandise credits, and cards not marketed to the general public. These exclusions are essential for companies designing specialized programs, such as loyalty rewards, to avoid unnecessary compliance burdens while still offering tailored benefits. For example, loyalty or promotional gift cards must disclose key details like purpose, expiration, fees, and customer support options directly on the card or associated materials. These nuanced requirements highlight the importance of distinguishing between regulated and excluded instruments when structuring a gift card program. By understanding and adhering to the CARD Act’s provisions, businesses can enhance consumer trust, avoid penalties, and create programs that align with regulatory expectations while driving customer engagement.

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📰 Interesting Articles

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