ROCKVILLE, Md., Sept. 20, 2018 /PRNewswire/ -- Gift cards have become—and remain—a ubiquitous retail presence. Among those who have given or received a gift card in the past 12 months, about half have purchased one from a shelf/rack at a supermarket, drug store or other retailer, and more than a third purchased one in-store from the retailer named on the card, according to Prepaid and Gift Cards in the U.S., 6th Edition, a new report by market research firm Packaged Facts.
Meanwhile, e-commerce growth has translated to e-gifting: some 19% have purchased a gift card online from the retailer named on the card, and 10% have done so from an online gift card website. Rewards/points redemption is another driver, with 27% redeeming points/rewards for a gift card in the last 12 months.
Despite the growing popularity of e-gift cards and the undeniable impact of e-commerce on the U.S. economy, physical gift cards remain the standard for most consumers. This trend holds true even among tech savvy Gen Z and Millennial adults.
"While 18-34 year olds may be digital-forward, they still purchase gift cards from retailers in-store. We found that almost half of 18-24 year olds claim they purchase gift cards most in-store from the retailer named on the card, a much higher percentage than any other age group. They are also less likely than average to purchase most from an online source," says David Sprinkle, research director for Packaged Facts.
Further evidence that physical gift cards remain prevalent: some 51% of gift card givers received a physical gift card from someone else in the past year, while only 20% say they received an e-gift card/digital gift card from someone else.
Packaged Facts also found that while mobile app and wallet innovation has been generally strong, it has not translated overwhelmingly to gift cards. Only 10% of those who have given or received a gift card in the past 12 months have saved their gift cards in a retailer mobile app, and 9% have saved them in a mobile wallet.
About the Report
Prepaid and Gift Cards in the U.S., 6th Edition covers trends shaping the prepaid card market. This Packaged Facts report provides industry participants with a wealth of insights to help them navigate this quickly changing and growing market. For the purposes of this report, prepaid cards consist of closed-loop and open-loop (general-purpose) prepaid cards, including consumer general-purpose reloadable, government-administered, payroll, healthcare, rewards and incentives, and gift cards
View additional information about Prepaid and Gift Cards in the U.S., 6th Edition, including purchase options, the abstract, table of contents, and related reports at Packaged Facts' website: https://www.packagedfacts.com/financial-services-market-c83/.
About Packaged Facts
Packaged Facts, a division of MarketResearch.com, publishes market intelligence on a wide range of consumer market topics, including consumer demographics and shopper insights, consumer financial products and services, consumer goods and retailing, and pet products and services. Packaged Facts also offers a full range of custom research services. Reports can be purchased at our company website and are also available through MarketResearch.com.
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SOURCE Packaged Facts