Why Gift Cards Remain a Constant Retail Need

The “darlings of prepaid” continue to stay in-demand with consumers.

Date:Oct. 18, 2018

Since its inception, the prepaid industry has expanded into many different products that serve a wide range of consumers. But it all started with gift cards.

 

Yet, gift cards are as relevant today as they were when they first hit the market decades ago. Both sales of and demand for gift cards increase each year and projections predict that growth to continue well into the future.

 

Speaking with Payments Journal recently, Marina Hodges, board chair of the Retail Gift Card Association, spoke at length about exactly why gift cards are finding continued relevance in the market today:

 

“Just like credit cards, debit cards and open-loop prepaid cards, gift cards and egifts factor into the contextual commerce equation because they help meet consumers’ omnichannel demands while also driving purchasing behavior,” she said. “Consumers that receive gift cards as gifts, buy them for self-use as part of marketing promotions, or earn them as rewards can use those cards just like other forms of payment—and not just by visiting retailers’ brick-and-mortar stores or websites.”

 

The versatility of gift cards that Hodges is speaking about in the quote above is due to their simplicity. Gift cards aren’t complicated. They are easy to use and easy to understand. That makes them an easy fit for the financial habits of various kinds of consumers.

 

They also serve as a solution for countless retailer needs. They drive foot traffic, increase revenue and build loyalty all without taking up much floor space or requiring excessive inventory.

 

As the prepaid leader, InComm is the partner many of the largest retailers in the world rely on for their gift card needs. From design and distribution to merchandising and redemption, we expertly control the entire lifecycle of these versatile products.

 

Most retailers have realized gift cards are going to remain in demand for a while. Those that haven’t still have time to catch up.