NEW YORK—Analysts are predicting that consumers will buy more gift cards this holiday season, but not just as a means to provide simple and useful gifts.
Consumers are expected to buy gift cards at steep discounts using online marketplaces, such as Cardpool, Gift Card Granny and Raise, to pay for holiday gifts.
Raise estimates that consumers will save more than $40 million this holiday season through buying discounted gift cards on its platform alone, CNBC reported. How much an individual saves is based on the popularity of the gift card brand. The more popular or ubiquitous the merchant, the lower the discount.
“For example, you can buy a Target gift card at Gift Card Granny with a 5.6% discount as of Nov. 22. By contrast, you can purchase a card for New York & Company, a wear-to-work clothing retailer for women, at 35% off face value at Cardpool. The discounts on cards at online exchanges are based on supply and demand,” stated CNBC.