Global spending on gift cards rises this holiday season

Data from Square’s latest Holiday Retail Report shows shoppers are excited to return to physical stores but are turning to gift cards as stock items remain in flux.

Consumer gift card purchases are forecast to increase 43 percent, with physical gift cards up 46 percent and e-gift cards seeing a 29 percent increase in purchases. Retailers are already preparing for consumers opting for gift cards instead of physical gifts, as 32 percent more businesses have sold gift cards this year compared to last.

Despite retailers urging consumers to shop early, Square found no considerable spike in consumer purchasing so far, indicating that holiday shopping is not starting earlier.

“Businesses must find a way to create memorable and seamless shopping experiences during the holidays, further encouraging customers to come back into the New Year,” said Alyssa Henry, Executive Vice President, Square. “Convenience and customization will be key to meet buyer’s needs and expectations this year. These are the moments of truth that really matter and will build sustained brand loyalty and reputation.”

For its report Square compared payment transactions between September–October 2020 and September–October 2021 in the U.S. retail sector. It also found demand for health and beauty items up 81 percent and jewellery demand up 26 percent.