Why Giftcards are loved by merchants..

[Formpay]

There are many benefits to offering gift cards. Over 11% of consumers have purchased gift cards for presents on
holidays or birthdays, and the number is rising. Cards are purchased with an average value of $139.00 on them,
whereas if a consumer simply purchased an item as a gift, there is the chance that he or she would not spend as
much on the recipient. Many gift givers have shifted away from giving cash, because the recipient may spend the
cash on items other than a gift. Gift cards guarantee that a recipient must return to that store for an item. And if the
entire value on the card is not spent, the recipient can use the card later. Or to the merchant’s benefit, the recipient
might even forget and never use the remaining balance, which is money in the merchant’s pockets.
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