Thursday, June 30, 2011
Gift card reloading increased in 2010
U.S. consumers still consider prepaid cards a popular gift-giving choice, according to First Data Corp.'s 2010 U.S. Gift Card Consumer Insight Study. While closed-loop gift cards remain more prevalent in 2010, there was a significant increase in the number of open-loop gift card purchases last year, the study said.
Birthdays remain the most popular closed-loop gift card giving occasion, followed by Christmas. But the study also showed an increase in the percentage of consumers reloading both open- and closed-loop cards.
Additional findings of the study:
- Twenty-five percent of study respondents indicated they would likely give a virtual gift card, while 48 percent said they are interested in receiving one.
- Seventy-two percent of respondents reported spending more than the value on closed-loop gift cards. The amount of overspend was greatest at department stores ($28), followed by grocery stores ($27), discount stores ($25), fine dining ($24) and specialty retail stores ($24).
- The average value loaded on open-loop gift cards was $68 in 2010, compared with $59 in 2009, while the load on closed-loop gift card values remained steady at $39 in 2010. The average value on gift cards used for fine dining, grocery and drug store purchases increased, while the value on gas cards decreased.
- The purchase of cards from gift card malls is on the rise. The percentage of consumers purchasing closed-loop cards at gift card malls reached 46 percent in 2010, up from 38 percent in 2009.
- Overall, more consumers are reloading open- and closed-loop gift cards, which can mean more visits and greater spend. Of those who reloaded closed-loop gift cards, 35 percent said they visited the merchant more often and 20 percent said they spent more money at each visit.
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