Traditionally viewed as a tool for gifting others, gift cards are increasingly being used by consumers to treat themselves. According to the latest AGPCA research, 1 in 3 gift card consumers now purchase gift cards for their own use – a trend that’s reshaping how retailers and loyalty programs think about engagement, incentives, and customer experience.
Why Consumers Are Buying Gift Cards for Themselves
The motivations behind self-use are both practical and strategic. AGPCA’s findings highlight five key drivers:
- Budgeting
Consumers use gift cards as a way to allocate spending, especially for discretionary purchases. Preloading a card with a set amount helps control impulse buying and manage monthly expenses. - Discounts on Usual Spending
Many retailers offer gift cards at a discount or bundled with promotions. Consumers take advantage of these deals to save on purchases they would make anyway – turning gift cards into a savvy shopping tool. - Payments and Incentives
Gift cards are increasingly used as a form of payment or reward, especially in surveys, promotional campaigns and staff incentives. Consumers redeem them for personal use, blurring the line between gifting and spending. - Online Purchases
With the rise of e-commerce, gift cards offer a secure and convenient way to shop online without exposing bank details or credit limits. - Avoiding Cash
In a world moving toward cashless transactions, gift cards provide a flexible alternative to carrying physical money – especially for younger consumers and digital natives.
Implications for Retailers and Loyalty Programs
This shift toward self-use opens up new opportunities for businesses:
- Personalized Promotions
Retailers can target self-gifters with tailored offers, such as bonus value on self-purchased cards or exclusive access to sales. - Loyalty Integration
Linking gift card purchases to loyalty programs can encourage repeat visits and deepen customer engagement. - Data-Driven Insights
Tracking self-use patterns helps retailers understand consumer preferences, seasonal trends, and spending behaviours—valuable for inventory planning and marketing. - Flexible Payment Options
Offering gift cards as a payment method at checkout (both online and in-store) enhances convenience and encourages adoption.
Looking Ahead
As self-use continues to grow, gift cards are evolving from a simple gifting tool into a flexible and convenient way for consumers to manage their shopping habits. For retailers and loyalty program managers, recognizing and responding to this trend is key to staying competitive in a consumer landscape that values flexibility, control, and value.