• Brandweek, Wednesday, November 7, 2007 12:15 PM

Hispanics spend more on gift cards than any other ethnic group, according to a new study from Comdata-Stored Value Solutions. They purchase an average value of $71, while African-Americans spend $60 and Caucasians spend $41.

The amount spent by Hispanics soared 87% compared to last year, in part because retailers are doing a strong job marketing to the segment, says Bob Skiba, GM of CSVS. "We have seen retailers going out of their way to market to Hispanics--by understanding their cultural ties to family, by adding Spanish-language cards to their lineup, and by making the cards 'personal' to them," he says.

This demographic is "underbanked"; that is, many don't have a tie-in with a large banking institution, says Skiba. The cards are an easier way for them to handle shopping transactions. The study also notes that 26% of Hispanics give the cards to their children in place of allowance or as a budgeting tool.

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