InComm Reports: Consumers Plan in Advance for Open-Loop Gift Card Purchases, Presenting Opportunity for Brands and Retailers

ATLANTA, Sept. 25, 2018  /PRNewswire/ -- InComm, a leading prepaid product and payments technology company, today announced that consumer open-loop gift card purchases are not last-minute decisions, bucking a commonly held belief. The company's Summer 2018 Open-Loop Gift Card Study found that 73 percent 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 United States 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 percent 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 percent of consumers spend more than the value of their open-loop gift card when they visit a store. Of these consumers, 43 percent spent between $20 and $50 more than the value of their card. Retailers that create an 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.  

About InComm
Leveraging deep integrations into retailers' point-of-sale systems, InComm provides connectivity to a variety of service providers that allow consumers to conduct everyday business at more than 500,000 points of retail distribution. Whether those consumers are activating prepaid products, paying bills, enjoying real-time discounts through a membership card, purchasing digital goods in-store or adding funds to an online account, InComm is there to provide unique gift-gifting opportunities, cater to on-the-go shoppers, deliver added value through loyalty programs and serve cash-based consumers. With 366 global patents, InComm is headquartered in Atlanta with a presence in more than 30 countries.

Media Contacts:

Anthony Popiel
Dalton Agency
404.876.2800 x 1309
[email protected]

Kristen Rocco
Communications Director
InComm
678-248-3236
[email protected]

SOURCE InComm

Related Links

http://www.incomm.com