This holiday season spending on plastic or digital gift cards will top all previous records, according to the National Retail Federation’s (NRF) Gift Card Spending Survey.

The October survey from NRF found that the average person buying gift cards will spend $172.74, up from $163.16 last year. Total spending is expected to reach $31.74 billion. In the survey, 62% of shoppers said they would like to receive a gift card, making gift cards the most requested gift item eight years in a row.

“No longer impersonal or only about convenience; gift cards have become the perfect, practical gift item for millions of holiday shoppers,” said NRF President and CEO Matthew Shay. “And as the most requested gift item for eight years in a row, we’re sure there will be plenty of happy individuals this holiday season who can look forward to treating themselves to something shiny and new come January when retailers start to offer promotions on fresh, new merchandise.”

According to the survey, shoppers will spend an average of $47.87 per card, up from $45.16 last year. Total spending on gift cards has increased 83% since NRF began tracking consumers’ intentions to buy gift cards as holiday gifts in 2003.

Gift cards are a go-to gift for consumers of all ages. The survey found adults 65 and up will spend the most on gift cards at an average of $204.59. Young adults 18-24 years old will spend the least at an average of $113.75. Additionally, men plan to spend significantly more than women on gift cards ($180.81 vs. $165.09, respectively). 

More than half (51.8%) of shoppers surveyed said they give gift cards because they allow recipients to select their own gifts. The figure rose from 43.1% last year and is the highest since NRF started asking the question in 2010. Additionally, one-quarter (25.6%) said gift cards are easier and faster to buy, and 3.8% said this helps them stick to their holiday budget.

“These days, shoppers simply love the idea of gifting someone they care about with a little ‘free money’ in the form of a gift card,” said Prosper’s Principal Analyst Pam Goodfellow. “Consumers young and old want to find the best way possible to create a happy holiday experience for their loved ones, and gift cards are a great option every time.”

Department stores, restaurants and coffee shops are among the most popular choice for gift-card givers. According to the survey, 37.7% of gift-card buyers will give their loved ones a gift card from a department store, and 34% will give their friends and family the gift of a meal at a restaurant. One in five (20.6%) will pick up coffee shop gift cards, 18.1% will give the gift of entertainment and 18.9% will give gift cards to electronics stores.

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