Despite ongoing economic uncertainty, American consumers plan to buy more gift cards this year, strategically using them to manage budgets, find deals, and control spending, according to new research from branded payments provider Blackhawk Network. The research provides actionable insights specifically for retailers, restaurants, and brands. It highlights significant growth in digital gifting, increasing adoption of AI-driven shopping, self-use trends—with nearly one-third of consumers purchasing gift cards for their own use—and the rising influence of Generation Alpha.
“Gift cards have become valuable financial tools for consumers navigating economic uncertainty, offering flexibility, convenience, and value that other gifting options often can’t match,” said Jay Jaffin, chief marketing officer at Blackhawk Network. “Growth in eGifts and preference for purchasing and delivering gifts via app or social media networks indicates a continued shift toward digital-first shopping, particularly among younger consumers. We’ve also seen significant adoption of AI to personalize and streamline shopping experiences, alongside a growing consumer preference for sustainable gift card options. Brands that align with these trends can capture greater consumer spending and build deeper customer loyalty.”
The research commissioned by BHN uncovered key shopper trends and gift card preferences, including:
- Increased consumer demand amid economic uncertainty: Consumers plan to purchase 10% more gift cards compared to 2024, showcasing the resilience of gift cards even amidst ongoing inflation and cost-of-living concerns. Gift cards provide a balanced solution for giving during uncertain times, allowing people to offer a gift of the recipient’s choosing while controlling costs.
- Growth of digital gifting via messaging and social media: Digital gifting has seen significant year-over-year growth, particularly through messaging and social media apps. One-third of younger consumers have already purchased gift cards via messaging platforms, with nearly 60% expressing interest in using this channel, presenting critical opportunities for businesses to engage consumers digitally.
- Significant adoption of AI for personalized gift shopping: Nearly half of consumers leverage AI tools to find the best deals, compare products, and personalize gift suggestions. Adoption rates among younger consumers are twice as high as older generations, highlighting AI as an essential component for targeted, personalized customer experiences.
- Increased use of loyalty programs for gift card purchases: Younger consumers are participating in loyalty programs more than they have in recent years, and some are redeeming loyalty points for gift cards. Brands strategically integrating gift cards into loyalty programs can effectively drive repeat visits and customer engagement.