TSG and Bank of America have released their latest gift card trends, highlighting the continued rise in gift card popularity and evolving consumer behaviors for the 2025 holiday season.
According to new survey data, 3 in 4 consumers now prefer buying gift cards over merchandise for holiday gifting, with younger generations driving a surge in digital gift card purchases. The report also reveals that 68% of consumers received a gift card for the holidays in 2024, a 6% increase from the previous year.
These findings were compiled from a joint survey of over 1,000 U.S. consumers* to examine attitudes, preferences, and habits regarding gift card use. Previously released insights from this survey can be found here.
Key Insights
- Holiday is the top gift card occasion: 86% bought any gift card for the holidays in 2024 (vs. 83% for birthdays; 67% for other special occasions).
- Physical still leads for holidays: 73% purchased a physical gift card for the holidays (vs. 64% birthdays; 50% special occasions).
- In-store prompts matter: 71% are prompted to buy gift cards in‑store. The most effective placements: checkout displays (46%), kiosks/standalone areas (32%), and aisle placements (25%).
- Promotions move the needle: Nearly 4 in 10 shoppers say bonus cards or promos make them more likely to buy (+2% YoY).
- Gift card demand keeps climbing: Consumers are asking for gift cards more often, rising from 32% (2024) to 35% (2025).
Contact your Bank of America representative to learn more.
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Methodology
*TSG and Bank of America conducted a survey of 1005 consumers in the U.S. to understand their usage of gift cards, as well as their attitudes, preferences, and habits around gift card use. The survey, conducted in March of 2025, includes feedback from consumers across the United States, with a margin of error of +/- 3% at a 95% confidence level.