TSG and Bank of America have released their 2026 U.S. Consumer Gift Card Study, revealing that gift cards continue to gain momentum as one of the most effective tools for merchants to drive new customers, larger transactions, and repeat engagement.

Based on a full‑year view of consumers’ actual 2025 purchasing and redemption behavior, the research* highlights how gift cards influence spend levels, channel usage, brand discovery, and preferences across generations, while pointing to significant untapped opportunity in digital and B2B gift card programs.

Key Insights (Download the Infographic)

Gift Cards Drive New Customer Acquisition, Especially Among Younger Generations

More than half of U.S. consumers (55%) say they would try a new business because of a gift card, up from 49% two years ago. The impact is even more pronounced among younger generations, including Millennials (64%) and Gen Z (61%), compared to just 37% of Baby Boomers.

These findings underscore gift cards’ growing role as a brand discovery and loyalty tool, particularly for merchants looking to attract first‑time customers earlier in their lifecycle.

Most Consumers Spend the Full Value…and Often More

Gift cards don’t just bring customers in; they also increase transaction size. According to the study, 44% of consumers typically spend more than the value of their gift card, while another 48% spend about the same amount, reinforcing gift cards’ ability to boost incremental revenue at the point of redemption.

Omnichannel Redemption is Now Table Stakes

Ease of redemption plays a critical role in whether gift cards get used at all. Between 39% and 49% of consumers say they are less likely to use a gift card if a specific redemption channel is unavailable: whether in‑store, online, via mobile app, social media, digital wallet, or over the phone.

The data suggests that merchants who enable broad, frictionless redemption across channels are more likely to capture full card value and drive higher total spend.

Digital Demand Rises, but Physical Remains Resilient

Consumer demand continues to shift toward digital, while physical gift cards remain a key part of the mix. In 2025:

• 27% of consumers purchased both digital and physical gift cards (+2% YoY)
• 36% purchased only physical gift cards (-6% YoY)
• 13% purchased only digital gift cards (flat YoY)

For digital delivery, email is the clear preference, with 52% of consumers favoring email‑only delivery over text or mixed formats.

B2B Gift Cards Present a Major Untapped Opportunity

While 81% of consumers say they would like to receive gift cards from their employer, only 41% report having received one, leaving a sizable gap between preference and reality. The findings point to significant growth potential for B2B gift card programs across employee rewards, incentives, and customer engagement use cases.

Contact your Bank of America representative to learn more.

For more information about TSG, please contact us online or call 1-833-690-1301. For media inquiries, please email [email protected].

*TSG and Bank of America conducted a survey of 1,002 U.S. consumers between February 5-10, 2026. The study includes respondents ages 18 and older across all 50 states and carries a margin of error of ±4% at a 99% confidence level.