The 2020 Holiday Season will be different from years past. The good news is that it offers more opportunities for merchants to increase revenue and attract new customers with gift cards. Consumers expect to spend 40% of their holiday gift budget on gift cards this year. That is a 19% increase over 2019, according to the Holiday Gifting 2020 study by Blackhawk Network. This increase will be driven by the shift to digital shopping spurred by changes in habits from Covid-19. Respondents expect to buy an average of 10 gift cards this season, double the number from 2019.

Here’s how merchants can take advantage of these market opportunities:

Sell Gift Cards Online

50% of Americans plan to shop online this Holiday season.

Merchants must have an online presence to capture this market share. CRBE Retail Research forecasts 2020 holiday eCommerce share of total retail sales to be 40%. Our online gift card solution enables merchants to sell both eGift and plastic gift cards seamlessly from their websites. eGift cards are delivered directly to recipients via email. We offer fulfillment services for plastic cards including handwritten notes and holiday packaging options. Both options adhere to social distancing practices. Consumers want the most bang for their buck as they look to stretch their dollars. The functionality of our solution enables merchants to set up promotions to entice consumers to buy more gift cards.

Embrace Contactless Transactions

67% of customers say they would switch to businesses offering contactless payment options.

Contactless payments adoption has taken place faster than predicted due to Covid-19 concerns about handling currency. Factor4’s solutions enable contactless transactions and comply with social distancing practices. Our mobile apps provide pay by phone capabilities and our online solution enables contact-free gifting.  Our virtual web terminal allows merchants to email or text gift cards from their terminals direct to recipients. Contactless payments are here to stay as 74% of people who use contactless payments said they plan to continue doing so after the pandemic.

Get Ready Now

28% of surveyed consumers are starting their Holiday shopping early this year.

Merchants need to be ready now. Major retailers are kicking off holiday promotions in October and there will be less emphasis on Black Friday this season. While eGift cards have exploded in popularity due to their ease in delivery and adherence to social distancing practices, merchants should still have plastic cards on hand for those customers who like to send tangible gifts. Offering holiday packaging and contact-free pick up is strongly suggested. Merchants also need to start promoting gift cards in-store, online, and via social media and email to let consumers know they sell gift cards.

Gift Cards Top Wish Lists

For 14 years running, Gift Cards have been the most popular holiday gift.

Gift Cards will be the most popular Holiday gift this year and demand for them is at an all-time high as consumers shift shopping behaviors. Merchants can gain revenue and new customers by embracing these changes. By adding technology that enables digital gifting, contactless transactions, and social distancing along with promoting gift cards, merchants can make this the most successful holiday season yet. Factor4 is here to help merchants with all of their gift card needs. We can help merchants adopt new technologies to capitalize on these market opportunities.

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