RGCA report: Gift cards remain strong

The Oklahoma City, Okla.-based Retail Gift Card Association released a consumer gift card attitudes survey that reported consumer confidence in gift cards continues unabated. The survey of over 1,000 consumers said that 71.3 percent of respondents feel very satisfied when they receive gift cards and 91.4 percent said they plan to give one to three retail gift cards as gifts in the next three months.

The RGCA research also reveals that consumers maintain a commonsense approach to how they use gift cards. Only 30.6 percent of survey respondents would purchase something with gift cards they would not normally buy, the RGCA said. "The rest, 69.4 percent, said they would spend the gift card on something they needed, or put it toward a larger purchase," the association added.

Additionally, the RGCA found that:

• 28.6 percent of survey respondents plan to give home improvement-specific gift cards to newlyweds this summer, trailed by gift cards for spa/leisure, restaurant, retailer or online purchases
• 73.2 percent prefer to give gift cards when they are given from groups of people
• 88.5 percent redeem gift cards within 6 months of having received them
• 87.7 percent spend the total amount, or more, of gift cards when they go to redeem them
• 50.9 percent like to give gift cards because they are convenient, while 64.3 percent cite the freedom for recipients to choose what they purchase with gift cards
• 84.6 percent like to receive gift cards because they can purchase what they want with them

RGCA Executive Director Rebekka Rea believes the survey results speak to the gift card industry's ability to meet the challenge of keeping gift cards relevant for consumers. "This survey shows that gift card[s] continue to evolve in terms of their utility for many gifting occasions and they continue to be coveted by recipients," she said.

Editorial Note:

Whether you want to upgrade your POS offerings, find a payment gateway partner, bone up on fintech regs or PCI requirements, find an upcoming trade show, read about faster payments, or discover the latest innovations in merchant acquiring, The Green Sheet is the resource for you. Since 1983, we've helped empower and connect payments professionals, starting with the merchant level salespeople who bring tailored payment acceptance and digital commerce tools, along with a host of other business services to merchants across the globe. The Green Sheet Inc. is also a proud affiliate of Bankcard Life, a premier community that provides industry-leading training and resources for payment professionals.

Notice to readers: These are archived articles. Contact information, links and other details may be out of date. We regret any inconvenience.