Gift Cards are the most requested holiday gift for 15 years running. Due to supply chain disruptions and consumers’ rapid adoption of online shopping, this will be a record holiday season for plastic and digital gift card sales. Consumers will do as much as 41% of their holiday shopping via gift cards with the average consumer purchasing 15 gift cards, according to research by Blackhawk. 

Gift cards bring in new customers and significant revenue. 75% of shoppers spend more than the value of the gift card with the average spending 40% over the value. And 90% of consumers who receive a gift card from a small business they have never visited say they’d use the card to shop there and return for future shopping. Here’s a closer look at the holiday gift card trends for 2021. 

eCommerce Equals New Opportunities

eCommerce sales saw double digit growth in 2021. Covid has accelerated the adoption of digital gift cards with 43% of consumers using them more frequently than before the pandemic. It is predicted that upwards of 80% of the shift to digital will be permanent. Digital gift cards enable merchants to provide digital payments and contactless transactions. A report by McKinsey & Co. revealed that more than 4 in 5 Americans have used some form of digital payment this year. 

Our online gift card solution offers merchants the ability to sell digital and plastic gift cards right from their websites with no set up fee. Plus, we are one of the only providers offering a true omnichannel solution across all platforms. Our integration with SavorConnect enables merchants to add gift cards to their Shopify stores. According to PYMNTS research, 58% of consumers are very or extremely interested in online stores that offer customer rewards. Our eCommerce solution provides this functionality.

Plastic Gift Cards for Under the Tree

Digital gift cards are convenient and Covid friendly yet some people prefer to give and receive physical gifts. A Fiserv survey of consumer gifting plans for the holiday season found that 58% of respondents prefer to give physical gift cards, up from 42% in 2020. 58% also said they prefer to receive physical gift cards, up from 39% last year. With supply chain issues and product shortages, plastic gift cards are a fail-safe way to ensure there are presents under the Christmas tree and Hannukah bush this year.

Convenience and Personalization are Key

Over 87% of consumers intend to shop online for holiday gifts which is 10% higher than reported in 2020 according to the 2021 Holiday Shopping Outlook, a PYMNTS and Kount collaboration. Our digital gift cards enable personalization and provide convenience for consumers. They enable merchants to capture those abundant last-minute holiday sales and provide immediate delivery of gifts. Our gift card holders and packaging truly make gift cards gifts. We provide fulfillment services so that merchants don’t have to fulfill online plastic gift cards themselves. We handwrite the envelopes, personalize messages provided by the purchasers, and promptly mail them to recipients. 

Gift Card Promotions Increase Sales

With inflation increasing, consumers want bang for their buck this holiday season. Gift card promotions provide a desirable incentive, generate immediate revenue, and bring in new customers. During a 1-week holiday gift card promotion in 2020, a Factor4 client sold 4,800 gift cards via our online solution – a 2700% increase over 2019. Promotions bring in new customers because consumers like to introduce recipients to businesses they frequent by gifting them gift cards. Gift card promotions are easy, inexpensive, and can be implemented immediately. Gift card bonus programs are popular because they provide two gifts for the price of one. Gift card promotions are not just for the holidays; they can be used to generate revenue year-round.

Factor4 is Your Best Partner

Factor4 has been ready for the gift card rush and started fulfilling holiday gift card orders before Halloween. We have over 500K gift cards and 200K gift card holders in stock. We can fulfill stock and custom cards in as little as 2 days. Our online gift card solution and integration with Shopify enable merchants to seamlessly sell plastic and digital gift cards right from their websites. Our fulfillment services enable convenience and personalization for merchants; and we help merchants set up successful gift card promotions. Our merchant and ISO support is unrivaled. We are here to help our partners sell the most gift cards, bring in new customers, and generate significant revenue. 

We Wish You a Happy Holiday Gift Card Season!