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Consumers are Buying Gift Cards for Themselves

August 6, 2024

Gift cards are a popular gift for more than just friends and family.

The 1970’s was called the “Me Decade” by the famed writer Tom Wolfe who observed that people during that time were overly preoccupied with their personal needs and individual well-being. While other cultural artifacts from the 1970s like feathered hairstyles and pet rocks have stayed safely moored to that period, you could say that the Me Decade is having a resurgence when it comes to gift cards.

In its annual “Gift Card Year in Review”, InComm Payments found that U.S. consumers are thinking “me first” and purchasing a great number of gift cards for themselves and their own personal use. Of open-loop gift cards purchased, the report found that 42% of those purchases were intended for self-use, with the remainder largely given to family members. So contrary to popular belief, gift cards aren’t just thoughtful gifts for uncles’ birthdays, recent college grads and dog sitters.

Why buy a gift card for self-use?

Since gift cards are such a highly valued gift, the first thought may be that consumers are buying the cards for themselves as a treat or reward. While that could be true in many cases, our research found that consumers were buying closed- and open-loop gift cards for much more practical and functional reasons.

Convenience

Convenience was the number one factor cited for self-use.​ Consumers find them easy to use, and they enjoy not having to carry a wad of cash in their wallets. They also like that the open-loop gift cards are widely accepted across a vast network of brick & mortar stores and e-commerce sites.

Money Management

Money Management was also a highly popular reason.​ Consumers find that using a gift card enables them to use a cash-based budgeting process without carrying cash. They like the fact that they can’t spend more than what is on the card, eliminating any opportunity to create debt.

Privacy and Security

Privacy and Security finished high in the survey, as well. Gift cards are not connected to an individual’s credit card or bank account, so consumers can make purchases without having to share those details if they are concerned about the privacy of their personal information, particularly when shopping online.

Merchants will be pleased to learn that consumers purchase gift cards for themselves with an average value of $51.93; an 8.4% higher value than cards purchased as gifts. And when they redeem their cards, about one-third of self-use closed-loop gift card consumers said that they spend over the face value of the card.​ Of those, 41% spend $50 or more above the value of their card. This is encouraging news for a merchant’s sales numbers. 

Serving self-use consumers

It would be wise for merchants to consider how they can engage with this self-use gift card trend. Here are several ways to motivate shoppers to buy a gift card for themselves in your store:

Create promotions centered on self-use

Send push notifications with discounts while they shop

Provide free shipping for online orders

Offer incentives like loyalty points or cashback deals

The “me first” attitude is working out well for consumers who buy themselves a gift card. They are getting a trusted financial product that is convenient and easy to use. It serves as a vital budgeting tool to help manage their spending. And their gift card enables them to shop online without having to provide sensitive banking details. 

To learn more about InComm Payments’ gift card solutions, click now.  

Source: InComm Payments Gift Card Research Q1-Q4 2023 – Results are based on 6,475 gift card shopper respondents surveyed in 2023. 

Want more great reading? Visit our gift card solutions page or explore how we expertly manage your gift card program. 

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