The hottest gift this holiday period may be one of the easiest to buy. 

Turns out shoppers don’t require to spend hours browsing online or combing through clothing racks to discover a suitable now. Research shows people adore receiving gift cards – even if some shoppers are hesitant to provide them. 

A recent survey from lender of America found 96% of surveyed consumers were happier or equally satisfied with gift cards compared to physical gifts. Another update from the National Retail Federation found gift cards are the most popular item on consumers’ aspiration lists, with 53% of shoppers requesting them this year.  

“There’s nothing easier than a gift card,” said lender of America’s head of customer and business products Mary Hines Droesch. “It feels more personal than liquid assets but enables you to get something considerate, somebody’s favorite store or brand, but you don’t get caught up in having to recognize what size someone is or what color they like. There’s less uncertainty with the purchase.” 

Michael Caraang, 31, of Beltsville, Maryland, said there’s no such thing as a impoverished gift. But he likes how gift cards are a forced “fun” purchase. liquid assets or checks are always enjoyable, but that money will more often than not leave toward basic outgoings like a phone invoice or car remittance. 

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Even so, he said he tries to avoid giving gift cards unless he’s sure it’s something the person would enjoy to avoid an “awkward circumstance.”

People tend to be more reluctant to provide gift cards than they are to receive them because they’re afraid to shatter social norms, according to Julian Givi, an assistant professor of marketing at West Virginia University who has researched gift card preferences.  

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“When we ponder of what a gift is supposed to be, we ponder of the red box with a green ribbon that encompasses a tangible item. Gift cards don’t really fit that norm,” said Givi. “People are reluctant to provide them because of their perceived lack of thoughtfulness. It’s not like you leave into the store picking out the perfect color shirt, the perfect sized shirt. It can benevolent of feel like a cop-out.”

Mary Steffel, an associate professor of marketing at Northeastern University, said her research found people desire to provide gifts that people will enjoy, but they also worry about seeming considerate and increasing how socially connected the recipient feels to them after receiving the gift, which makes some hesitate to hand over a gift card.

“Recipients probably appreciate gift cards more than givers realize, or maybe more than gift givers are ready to receive and act upon,” she said.

But researchers said the stigma against gift cards appears to be on its way out. Americans are expected to spend roughly $28.6 billion on gift cards this holiday period, according to NRF. The only category more popular with givers is clothing and accessories. 

lender of America’s survey showed 68% of people provide gift cards to allow the recipient more of a declare on their gift.  

“Oftentimes when people buy particular things for people, the recipients don’t like those particular things,” said Joel Waldfogel, a professor of applied economics at the University of Minnesota and author of “Scroogenomics: Why You Shouldn’t Buy Presents for the Holidays.” “An fascinating characteristic of gift cards is they allow the ultimate selection to be in the hands of the recipient.” 

They’re also popular with retailers.  

Sixty-one percent of shoppers spend more than the worth of the gift card when making their purchase, according to a 2019 survey from branded payments provider Blackhawk Network.

Gift cards can also curb costly returns for retailers, according to Givi. And unutilized cards have been found to boost companies’ profits, although some states require retailers to turn the money over to unclaimed property programs to profitability the money to consumers. 

An August Bankrate survey found 43% of U.S. adults hold an unused gift card. That’s allowed some companies to update significant profits from “breakage” ‒ or money from unredeemed gift cards. Starbucks claimed $207.6 million in turnover from breakage in budgetary 2024.