InComm: Gift Cards Hot for Holiday Season (Dec. 9, 2015)
Consumers are hot for gift cards this holiday, but more are turning to online and mobile channels to purchase virtual and physical cards, new data from InComm show. Of the 500 respondents surveyed in a recent study, 89 percent purchase two or more digital or physical gift cards by online or mobile means annually, while 94 percent said they intend to purchase two or more digital or physical gift cards via online or mobile this holiday season. Of those planning to buy gift cards from a digital channel this holiday, 23 percent plan to purchase five or more cards, while 41 percent of respondents who have purchased gift cards through Websites or apps buy five to 10 cards annually.
Meanwhile, e-gift cards themselves continue to soar in popularity—especially among younger consumers. Eighty-four percent of respondents ages 18 to 25 said they’re likely to purchase at least one digital gift card this holiday season, while nearly 90 percent of that demographic reported being more interested in purchasing digital gifts now than they were two to three years ago. Of all respondents who have purchased a gift card online or via mobile, 32 percent bought a digital card, 29 percent bought a physical card and the majority—39 percent—bought both. Another key trend identified in the survey was the popularity of purchasing gift cards for self-use; 96 percent of all respondents said they’re interested in purchasing and storing digital gift cards on their phones to redeem themselves.
The survey results are the latest indication of the continued popularity of electronic and physical gift cards, and make clear the opportunity gifting presents for merchants to drive purchasing and shopping traffic in stores and online, InComm said.