Boston -- A report issued Monday by CEB TowerGroup found that sales of gift cards will surpass $110 billion and spillage will drop 20% to $1.7 billion.
Propelling gift card sales past the $100 billion dollar mark is an increase in open loop gift cards purchases like those offered by American Express, Visa, Mastercard and Discover ($40 billion), restaurant gift cards ($19 billion) and merchant cards ($36 billion).
While electronic gift card sales have increased since tracking began in 2010, sales in 2012 are only projected to reach $3 billion, reflecting slower than initially projected adoption.
In 2012, CEB forecasts that roughly 85% of the U.S. population will exchange gift cards. In addition to a higher volume of card sales, 75% of consumers will spend the full amount of money on the card and 30% will spend $25 more than the value of the card, which is helping lower spillage – the amount of money left on a gi