Trends in the gift card industry are changing. Many of the shifts are due to new technology and advances in the digital world. Some are based on pure convenience. From social media to e-gift cards, here are some of the largest gift card trends right now:
A Change in Channel Where users buy their gift cards is changing in a big way. In only one year, in-person gift card sales have decreased by 10 percent, from 61 to 51 percent of all card sales. Online purchases, on the other hand, grew by 10 percent, which leads us to believe that those 10 percent who are no longer buying their gift cards in person are now buying them online.
Social Media Gift Cards Although still on the low end, this new way to buy and use gift cards is gaining momentum. You may see these card offerings on Facebook when it's your friend's birthday, or even when you visit a retailer's page who's very tapped in to the social world. There are now several opportunities to both buy and redeem gift cards directly through social platforms, such as Facebook. Now, over eight percent of gift card purchasing is done through social media.
E-Gift Cards Grow E-gift cards are definitely one of the fastest growing trends in the card industry. In just one year, the amount of people who bought e-gift cards grew by 15 percent, from 21 to 36 percent. The growth of this trend makes sense, what with the ease and convenience of digital gift cards. Plus, more and more retailers are now offering these as an option.
Gift Card Apps There is now new technology that allows users to store their gift cards in their phone via app, taking the idea of digital gift cards to a whole new level.
For more information and data about shifts in the gift card industry, view this report by First Data.
