Gift cards soar in popularity among American adults in 2007- study

The most popular occasions for giving a gift card are birthdays and Christmas.  Of those purchasers who bought gift cards that can be used at only one retailer, 68 percent purchased at least one gift card as a birthday gift and 61 percent bought at least one card as a Christmas present. Other popular occasions are graduations, weddings, Mothers Day and Fathers Day, as well as thank you gifts.88 percent of consumers bought more than one card. On average, consumers who purchased cards that can be used at a single retailer bought five gift cards in 2007 and spent USD 46 on each card. Gift card recipients spent USD 29 on average over the original value of the gift card.The American adults purchase gift cards that can be used at a specific retailer more often than those that can be used at multiple retailers, but 28 percent of gift card purchasers opted for a gift card that could be used at stores, restaurants and other retailers.72 percent of respondents purchase gift cards because the receiver can buy whatever (s)he wants, 43 percent because of the convenience of purchasing, 38 percent due to a flexibility in redeeming a gift card, and 33 percent because they do not know what to buy for the receiver.The 2007 US Gift Card Consumer Insights Survey was conducted by technology firm First Data.