E-gift Card Use Is Rising, First Data Study Finds

A study by First Data Corp has found that 57 percent of gift card buyers prefer to send e-cards because they are more convenient, Mobile PaYments Today report.

“Purchasing an e-gift card is a win-win for the purchaser and the recipient,” said [Krista Lee, director, product marketing, network and security solutions at First Data], noting 45 percent of those polled for the study opt for e-gift cards because they are easy to send and 25 percent prefer to give an e-gift card since they are easy for the recipient to redeem. The study also notes self-purchase of physical gift cards has grown from 26 percent in 2014 to 35 percent this year, and e-gift self purchasing has risen by 13 percent in 2014 to between 40 and 53 percent this year.

The study also found that 36 percent of gift card buyers say they are buying cards for themselves to earn rewards. Mercator Advisory Group’s own research has found that shoppers who buy gift cards for themselves prefer to buy digital cards over plastic.

Overview by Ben Jackson, Director, Prepaid Advisory Service at Mercator Advisory Group

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Mercator Advisory Group’s research can be found here