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Gift cards ease living cost burden: Blackhawk Network study finds

Wednesday 2 August 2023 12:02 CET | News

Blackhawk Network (BHN), a US-based global branded payment provider, has showed US consumers are strategically using gift cards to manage spending amidst economic uncertainties.

Recent research conducted by BHN examines the latest US consumer gift card preferences and usage. The findings shed light on how nearly all consumers who were surveyed are concerned about the economy and are adjusting their shopping and gifting behaviours accordingly. With concerns about the cost of living looming large, 97% of surveyed consumers reported worries about the economy, while 61% plan to change their shopping behaviours to navigate inflation. Among those changes, surveyed consumers are using gift cards to manage spending, plan to purchase more gift cards, and increase the value of the gift cards that they buy. 

Blackhawk Network (BHN), a US-based global branded payment provider, has showed US consumers are strategically using gift cards to manage spending amidst economic uncertainties.

Key consumer trends and gift card preferences highlighted in the research

Consumers are getting creative to navigate the rising cost of living.

With inflation rates on the rise, consumers find themselves with the task of balancing their budgets. Among the top areas of concern, consumers are most worried about inflation and grocery or food prices. To cope with this increase, they are using various tactics. This includes buying less expensive brands or generic store-brand products (55%); buying more products on sale (44%); buying the same brands or products, just fewer of them (34%); buying more products on promotion (27%); buying products in bulk to reduce costs (26%); and using more coupons (26%). Additionally, surveyed consumers report they have purchased more gift cards for self-use, primarily to help control spending (37%). 

More consumers plan to buy gift cards in 2023 and load them with higher values. 

Despite the current economic landscape, there is a 12% year-over-year increase in the number of gift cards surveyed consumers plan to purchase and a 7% increase in the value they plan to load onto those gift cards. The research showed that when it comes to gifting, gift card buyers and younger generations are the most generous gift-givers. Surveyed consumers who purchase gift cards were found to give 43% more gifts than those purchasing physical gifts. The study also highlighted that Gen Z and Millennial consumers are in their prime gifting years, signalling an opportunity for retailers to engage younger generations and build loyalty.

Gift givers overwhelmingly favour gift cards, but the reasons why are shifting.

Among the consumers who were surveyed, most picked gift cards for their flexibility and choice. However, the research shows a shift in gifting motivations. While flexibility remains essential, 63% of consumers buy gift cards for what recipients need compared to just 17% that purchase gift cards for something the recipient wants. Rather than focusing on the speed and convenience of gift cards, gift-givers are opting for gift cards because they are growing more conscious about giving a bad gift. Interestingly, 46% of respondents would search for a different store to find the gift card they want, and 65% of them report that gift cards are a better alternative to a physical gift that the recipient may not necessarily want.

More about Blackhawk Network (BHN)

Blackhawk Network’s product portfolio includes gift cards, e-gifts, rewards as well as payments that enable customers and businesses alike to conveniently access and disburse funds. BHN’s network spans over various consumer touchpoints all around the world.

In July 2023, they expanded their collaboration with Netherlands-based payments company Recharge.com. This collaboration was to enable BHN to digitally distribute gift cards across the US and Canada. BHN would be able to offer e-gift and virtual prepaid card brands via Recharge.com’s digital marketplace. Some of the types of cards this will include are merchant-specific gift cards, open loop cards, and multi-store e-gifts.

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Keywords: research, ecommerce, payments , prepaid card, inflation, partnership
Categories: Payments & Commerce
Companies: Blackhawk Network
Countries: United States
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Payments & Commerce

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Blackhawk Network

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