Gift Cards Are a Planned, Preferred Holiday Purchase, New TSG and Bank of America Study Finds

TSG and Bank of America have released their 2026 Gift Card Guide, revealing that gift cards have become an intentional, planned purchase that consumers budget for well ahead of the holidays, giving merchants a clear window to capture demand before peak season.

Based on a full-year view of consumers' actual 2025 purchasing and redemption behavior, the research* highlights how far in advance consumers plan, why they prefer gift cards over merchandise, how satisfied recipients are, and how quickly they redeem, pointing to gift cards' role as a reliable driver of near-term revenue and repeat engagement.

Key Insights (Download the Guide)

Gift Cards Are Intentional Purchases Consumers Budget for Each Year 

Gift card buying is planned, not impulsive. Holiday remains the top occasion, with 89% of consumers purchasing a gift card in 2025, followed by birthdays (83%) and special occasions (67%). Most purchases go to family (86%) and friends (56%), with 19% buying for co-workers.

Because consumers plan early, purchasing decisions are often made before peak season, creating a clear window for merchants to influence demand.

Consumers Prefer Gift Cards Over Merchandise During the Holidays 

Gift cards are a preferred and reliable gift, not a fallback. Nearly 3 in 4 holiday gift buyers (73%) prefer to purchase gift cards over merchandise, and 93% say gift cards give recipients the freedom and flexibility to spend how they want.

Recipients Are Highly Satisfied with Gift Cards 

Gift cards perform as well as, or better than, traditional gifts. Among consumers who received holiday gift cards last year, 96% rated them on par with or better than the traditional gifts they received: 39% were happier with the gift cards, 57% were equally satisfied, and just 4% preferred the traditional gifts.

Consumers Redeem Their Gift Cards Quickly 

Fast redemption drives immediate revenue impact. 87% of consumers who received holiday gift cards in 2025 used at least half of them by February 2026. In fact, 43% used all of their holiday gift cards by February, 29% used most, and 15% used half, often spending beyond the card value and returning both in-store and online.

The data reinforces that gift cards are not just seasonal. They are a core driver of retail performance and customer engagement, and merchants who act early are best positioned to win the holiday season.

Contact your Bank of America representative to learn more.

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*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.