Why Parents Purchase Gift Cards
April 3, 2024

Our annual “Gift Card Year in Review” found that 39% of surveyed consumers who buy open-loop gift cards for others said they gave at least one to their child in 2023. Additionally, 45% of Millennial parents and 45% of Gen X parents responding to our survey said they gave their child an open-loop gift card, which are all-purpose cards redeemable anywhere the payment network is accepted.

Why would parents give a gift card to their child? Here are the top four most cited reasons:

Shopping cart

To help them pay for something

Hand giving cash to other hand

As an allowance

Wallet with cards inside

To set a limit on spending

Desktop screen with shopping cart in front

To monitor spending

Parents also had this to say when asked to elaborate on why they gave an open-loop gift card to their child:

people shopping on a mobile phone throwing gifts into a cart
Quote from a parent about buying gift cards for their kids
Quote from parent about giving their kids gift cards
Woman handing child a gift card

Merchants that stock the right gift cards can help these parents reward their children.

 

Source: InComm Payments Gift Card Research Q1-Q4 2023 – Results are based on 3,256 open-loop gift card shopper respondents surveyed in 2023.

To learn more, visit our gift card solutions page.

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