What Incidents Prompt the Highest Number of Gift Card Transactions?
In the face of uncertain holiday retail forecasts for 2025, driven by tariffs and economic volatility, the gift card market could potentially thrive, according to Javelin Strategy & Research's Report: 2025 Prepaid Holiday Preview: Gift Cards Could Provide Safe Harbor.
The report suggests that the opportunity to position gift cards as a smarter alternative to tangible presents or competing card options remains strong. This is due to the allure of flexibility and future-facing gift options, which may attract shoppers in an environment where budgets are tighter and discounts are scarce.
The full gift card supply chain needs to be agile and ready to capture demand as it evolves. Retailers are already planning for the end-of-year rush, even as summer temperatures linger.
However, economic shifts in early 2025 could lead to unpredictable consumer behavior, including delayed or last-minute purchasing decisions. This underscores the importance of being prepared for a dynamic market.
The long-term success of gift card programs depends on the post-purchase experience. To deliver an engaging, personal, and rewarding experience for the recipient is key.
Major companies providing products and services in the gift card market in 2025 include American Express with its Business Gold Card offering extensive rewards and services tailored to businesses. ORLEN Deutschland is launching an online shop for gift cards together with KNISTR to enhance digital sales. Aktion Mensch offers lottery-based gift options for employee appreciation, while Gutscheinbuch.de provides regional 2for1 voucher books for dining and leisure experiences.
Interestingly, Mother’s Day and Father’s Day account for 40% of gift card purchases. Gift cards are also commonly bought for graduation (59%), holidays (52%), Valentine's Day (52%), birthdays (50%), and "just because" moments (46%).
As retailers enter the new year with mixed expectations, despite a strong 2024 season, the gift card market presents a promising prospect for growth and resilience amid economic uncertainty.
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