Gift cards are the go-to gift when you’re out of time, out of ideas, or just want to keep it simple. But what actually drives people to buy them? New data shows that while holidays and birthdays remain the most common reasons, other occasions—from graduations to “just because” moments—are nearly as popular. In fact, gift card spending trends reveal a lot about how we celebrate, how we show appreciation, and how we avoid picking the wrong size.
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Data for today’s episode is provided by Javelin Strategy & Research’s Report: 2025 Prepaid Holiday Preview: Gift Cards Could Provide Safe Harbor
Percent of People Who Definitely Buy Gift Cards by Occasion
- 59% – Graduation
- 52% – Holidays
- 52% – Valentine’s Day
- 50% – Birthday
- 46% – Just Because
- 40% – Mother’s Day / Father’s Day
Source: Javelin Strategy & Research
About Report
Holiday retail forecasts for 2025 remain uncertain, with tariffs and ongoing economic volatility casting a shadow over consumer spending. Despite strong performance in the 2024 season, retailers are entering the new year with mixed expectations. Planning for the end-of-year rush is already underway, even as summer temperatures linger. Economic shifts in early 2025 could lead to unpredictable consumer behavior, including delayed or last-minute purchasing decisions. These shifts may ultimately favor the gift card market, as shoppers lean into flexible, future-facing gift options instead of physical goods—especially in an environment with fewer discounts and tighter budgets. The full gift card supply chain—from issuers and retailers to digital wallet providers—will need to be agile and ready to capture demand as it evolves.
Gift cards remain a consistently favored choice among both givers and recipients, across both open-loop and closed-loop formats. According to Javelin’s findings, the opportunity to position gift cards as a smarter alternative to tangible presents—or even competing card options—is still strong. Long-term success depends not only on the initial sale but also on the post-purchase experience. To build loyalty and brand affinity, gift card programs must deliver an engaging experience for the recipient that feels personal and rewarding.
