Gift Cards Gain In Popularity With Gen Z
Gift cards could be a popular item for many holiday gift givers this year, according to new research from Blackhawk Network (BHN).
The online survey of more than 2,000 consumers aged 18 and older conducted by the global branded payments provider, found that respondents said they plan to spend 43% of their holiday budgets on gift cards. The trend, Blackhawk noted, is driven by Generation Z and their affinity for gift cards.
Younger generations included in the survey said they plan to buy 70% more gift cards than older generations this holiday season. Gen Z shoppers also plan to spend 56% more on gift cards and 9% more on gifting overall when compared to last year.
Another noticeable trend getting a boost from Gen Z is a shift in preferred payment types when it comes to holiday purchasing. Younger generations plan to use secondary payment types much more often than older generations. While debit, cash and credit card payments remain the top three payment options among all generations surveyed, many younger shoppers surveyed will also look to store or credit card points (43%), mobile wallets (39%) and physical gift cards (37%) to pay for holiday gifts this year.
“For retailers, as the youngest generation of shoppers continues to wield their influence and spending power this holiday season, it has become vital to expand and optimize marketing and gift card programs to include new ways to attract and engage young consumers,” said Jay Jaffin, chief marketing officer, BHN
Holiday Shopping Timeline
When looking at consumers across all demographics, there is an expectation that shoppers this year will begin their holiday shopping efforts later than previous years. BHN’s research found that 72% of surveyed Gen Z consumers plan to start shopping in November and December, with many reporting they won’t start until the end of December. With the increased likelihood for more last-minute shoppers this year, leaning into digital gifting will be key for retailers. eGift programs can adapt quickly and consumers continue to embrace digital gifting, especially those that miss holiday ordering deadlines.
Surveyed consumers plan to spend $770 on holiday gifting overall this year, a 3% increase over 2022. Younger generations plan to purchase a total of 17 gift cards this holiday season (10 physical and 7 digital) while older generations plan to purchase 10 gift cards (7 physical and 3 digital).
“Our research found that after a year of economic ups and downs, consumers are still planning to spend on holiday, but overall gift spending will remain relatively flat as 96% of consumers report ongoing concerns about cost-of-living pressures,” said Jaffin.
For more findings and insights into how to prepare for a successful holiday shopping season, download the Better & Better 2023 Holiday Gift Card Shopper Research.
