InComm Payments’ review of its 2022 gift card surveys found renewed preference for buying cards in physical stores alongside continued use of cards for personal spending. Published on March 14, 2023, the review compares 2022 shopping behavior with the previous year across open-loop and closed-loop products.

Big-box stores became the most-preferred channel for both groups, ending the two-year lead held by online shopping for closed-loop cards. Pharmacy gained ground while grocery declined. InComm also found shoppers more willing to ask a store employee for help or try another retailer when a desired card was unavailable.

Purchases became less consistently planned

The share of open-loop purchases described as planned ahead fell from 77% in 2021 to 71% in 2022. Spontaneous purchases rose from 17% to 21%, while last-minute purchases increased from 6% to 8%.

For closed-loop cards, the share of shoppers who said purchases were always planned moved from 52% to 48%. Those reporting that purchases were always unplanned rose from 2% to 4%. InComm connected the findings with the importance of display location and maintaining the card brands shoppers expect to find.

Convenience remained the leading purchase factor. Deals still motivated 20% of open-loop shoppers and 15% of closed-loop shoppers, although their reported influence declined from 2021. Some respondents said they were not finding, or hearing about, the promotions they wanted.

Gift cards as personal payment tools

The study divided open-loop card use almost evenly between self-use, at 51%, and giving to someone else, at 49%. Closed-loop cards were more often bought for other people, accounting for 62%, with 38% intended for the buyer.

InComm reported year-over-year growth in the use of cards for managing money: 24% for closed-loop cards and 17% for open-loop cards. Use of open-loop cards as a banking alternative increased 25%. These are changes reported in the survey, rather than shares of all consumers.

Open-loop shoppers buying for themselves averaged nine cards per quarter. Their spending categories included online purchases, clothing, groceries, entertainment, gaming and streaming. The research therefore gives retailers and program managers a view of gift card demand extending beyond occasions when the buyer is choosing a present.