Gift Card Spending Surges as U.S. Shoppers Tighten Holiday Budgets…

Event summary

82% of U.S. holiday shoppers are setting a budget, with 93% of them planning to buy gift cards.
Average planned holiday gift spending is down 3% from last year, with lower-income households cutting 13%.
74% of younger shoppers prefer open-loop gift cards (Visa, Mastercard) when budgets are tight.
50% of shoppers plan to redeem most or all of their loyalty points for holiday shopping.
40% of shoppers would click an AI-recommended gift card promotion, with 20% likely to buy without further research.

The big picture

Blackhawk Network's research highlights a strategic shift in holiday shopping, where gift cards and loyalty points are becoming critical tools for budget-conscious consumers. This trend reflects broader economic pressures, with AI emerging as a new influencer in purchase decisions. The findings underscore the importance of seamless, value-driven payment solutions in an increasingly cost-sensitive retail environment.

What we're watching

Budget Constraints: How sustained inflation will affect gift card spending trends beyond the 2026 holiday season.
AI Influence: The pace at which AI-driven recommendations will reshape holiday shopping behaviors and retailer strategies.
Loyalty Program Impact: Whether retailers can sustain engagement with loyalty programs as shoppers increasingly rely on them for holiday spending.