First Data said on Tuesday (Nov. 15) it has released its 2016 U.S. Prepaid Consumer Insights Study, and the research showed that consumers are “adopting and embracing” digital gift cards amid a backdrop where eGift card usage is increasing.
The demographic segment driving adoption can be defined by “socializers,” said the firm, with buyers falling into the age range of 18–34 and the “MTV generation” with constituents 35–54. This latter group stands as the largest group of “self purchasers” of physical and digital gift cards. And as for spend, said the firm, “maturists” at 55 and above are driving the spend across the cards.
As for the gifting itself, consumers are still buying more physical cards than eGift cards. Self-gifting of eGifts and cards has grown from 40 percent in 2014 to 53 percent this year, said First Data. And overall, across all age groups, roughly 42 percent of gift card recipients prefer to receive those cards, compared to 17 percent of respondents who prefer “traditional physical” gifts.
Turning to eCommerce, half of respondents said they are at least “somewhat interested” in using apps to store gift card information on their phones and devices.