A recent CashStar study discussing the popularity of gift cards showed a surprising number of consumers are looking for a smartphone solution to keep track of the gift cards they receive. The study looked at a diverse group of gift card givers and receivers from different demographic groups and regions across the country. What they found was that most prefer to give or receive mobile gift cards for a variety of reasons, including convenience, balance tracking, and the personalization it gives the ‘gifter’. So as gift cards remain a top gift choice for 9 years running, it’s important for merchants to note the desire consumers have for managing and storing them digitally.
Gifters and Receivers
61% of online shoppers plan to purchase gift cards, of that group, 56% would like to receive gift card balances that they can store on their smartphones.
“This data reinforces the importance of delivering rich, engaging and useful experiences for both the senders and the recipients of gift cards,” said CashStar President and CEO Ben Kaplan. “Even at the last minute, digital gifting allows givers to create highly personalized gifts with photos, messages and video. People who receive gift cards – both plastic and digital – now have more options than ever for storing their card value on their smartphones in mobile wallets, and in 2016 we expect more retailers to adopt this functionality.”
Remove the Risk of Lost Value
One major draw that mobile gift cards have is that they are harder to lose or leave at home. 40% of respondents admit to losing plastic gift cards, and thus a gift. From a gifters standpoint, this also puts insurance on the value of their gift.
Here’s a quick breakdown of where and how mobile gift cards are gaining momentum:
- Most interested in mobile : Residents in Western states come in on top, with 59% of respondents expressing interest in mobile gift cards.
- Most likely to lose plastic: Northeasterners, with 49% of respondents indicating that they have lost plastic gift cards.
- Most Mobile Ready: Unsurprisingly millennials 18-24 year olds came in on top, with 74% indicating an interest in storing gift card value on their smartphones.
- Least interested in mobile: Only 33% of respondents 66 years and older are interested in mobile gift cards.