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The Power of Branding in Prepaid Cards: Why Holiday-Themed Gift Cards Reign Supreme

By October 8, 2024November 5th, 2024No Comments4 min read

When it comes to gifting, especially during the holiday season, gift cards have become a go-to option for many consumers. According to a 2023 survey by the National Retail Federation (NRF), 58% of shoppers planned to purchase gift cards as part of their holiday shopping. This statistic highlights the importance of prepaid cards as a popular gift choice, but what makes holiday-themed gift cards more successful than their non-branded counterparts?

Why Branding and Theming Matter in Gift Cards

The success of holiday-themed gift cards largely stems from their emotional connection to the recipient. When a gift card is tailored to a holiday such as Christmas, Halloween, or Valentine’s Day, it goes beyond the practicality of a financial transaction—it creates a memorable experience that aligns with the festive spirit.

Data from InComm Payments shows that holiday-branded gift cards saw a 35% higher redemption rate during the 2022 holiday season compared to non-themed cards. This boost in redemption can be attributed to the fact that consumers are more likely to use a card that evokes positive feelings tied to celebrations.

Popularity of Prepaid Cards in Holiday Campaigns

Holiday campaigns provide a powerful marketing opportunity for businesses, and gift cards are at the forefront of these efforts. Here’s why holiday-themed prepaid cards are more successful than generic ones:

1. Emotional Engagement: Consumers associate holidays with joy, family gatherings, and celebrations. When they receive a holiday-themed Visa® gift card, it reinforces the connection between the gift and the occasion, making the experience feel more personal.

2. Increased Spending: Studies show that recipients of themed gift cards, especially those tied to major holidays, tend to spend more than the card’s original value. According to the National Retail Federation (NRF), 70% of consumers who received a holiday-themed card in 2022 spent at least 20% over the card’s value during the redemption period.

3. Brand Loyalty and Retention: Themed gift cards can enhance brand visibility and loyalty. Brands that use holiday branding on their gift cards tend to see 20-30% higher customer retention. When people feel emotionally connected to a brand during the holiday season, they’re more likely to remain loyal customers.

Mall Gift Cards and Visa® Gift Cards: The Holiday Shopping Trend

Close up of a woman holding shopping bags looking at shop window

During the holiday season, mall gift cards and Visa gift cards emerge as some of the most popular prepaid options. Mall gift cards, often tied to a specific shopping center, offer flexibility to recipients who want to choose their own gifts while still feeling the holiday spirit.

On the other hand, Visa gift cards, due to their wide acceptance, have become a staple in holiday gifting. What makes holiday Visa gift cards stand out is their universal use across various stores, coupled with a holiday design, making them the perfect blend of personalization and convenience.

Visa gift cards branded with holiday themes saw a 15% increase in sales during the last quarter of 2022, as reported by Statista. This rise in sales is linked to the growing consumer preference for a card that offers spending freedom while embracing the holiday season’s theme.

Key Benefits of Branded Holiday Gift Cards for Businesses

For businesses, integrating prepaid cards into holiday campaigns is more than just a seasonal sales tactic—it’s a strategic opportunity to boost engagement and retention.

Higher Brand Recall: Customers are more likely to remember brands that associate themselves with holidays through branded cards.

Cross-Selling Opportunities: Holiday gift card promotions often lead to increased foot traffic, whether in-store or online, giving businesses a chance to cross-sell other products.

Customer Acquisition: The gift card recipient may not have shopped with a specific retailer before but could become a long-term customer after receiving a branded card as a gift.

With the holiday season just around the corner, now is the time for businesses to invest in branded gift card campaigns. Whether it’s a mall gift card, a Visa gift card, or a custom-branded card, the statistics are clear: holiday-themed prepaid cards lead to higher engagement, increased spending, and long-term customer retention.

As consumers seek out the best gifts for their loved ones, make sure your brand stands out with a personalized, holiday-themed prepaid card. The holiday season is the perfect opportunity to combine branding with practicality—and there’s no better way to do that than with a gift card that adds a festive touch to the shopping experience.

Make payments simpler with a custom card program today.