InComm’s 2018 Open-Loop Gift Card Study examines trends and insights within the open-loop market.

InComm, a prepaid product and payments technology company, has released a new report that shows shoppers purchasing open-loop gift cards are not making last minute decisions, contrary to popular belief.

The company’s Summer 2018 Open-Loop Gift Card Study found that 73% of consumers plan their open-loop gift card purchases in advance and these open-loop consumers buy more gift cards than they intend to in a three-month period. Open-loop gift cards can be used virtually anywhere in the U.S. where the network on the card is accepted.

“These findings reveal that open-loop gift card users are regular and frequent purchasers of these products,” said Matt Lanford, senior vice president and general manager, financial services, at InComm. “Our study goes into further detail on what consumers expect when purchasing and using an open-loop gift card so brands and retailers are empowered with the knowledge they need to create effective gift card programs.”

The study also found that 67% of consumers indicated factors related to shopping efficiency when asked about what influences their decision to purchase an open-loop gift card. These factors include the convenience of a retailer’s location and the range of gift cards available at a store.

“Consumers want a gift card buying experience that will not disrupt their regular shopping routines,” said Lanford. “Retailers should work closely with their partners and prioritize planogramming and merchandising to ensure their stores have a wide range of gift cards in stock that can be easily found by customers.”

Engaging open-loop gift card purchasers and users also presents retailers with value-added opportunities. InComm’s study found that 28% of consumers spend more than the value of their open-loop gift card when they visit a store. Of these consumers, 43% spent between $20 and $50 more than the value of their card. Retailers that create engaging in-store experiences will be able to capitalize on these opportunities.

The InComm Summer 2018 Open-Loop Gift Card Study was executed twice in the first half of 2018 with more than 2,500 respondents representing prepaid consumers from a wide range of age, geographical and financial demographics.

To view the complete study, click here.