The study provides some step-by-step guidance for retailers to enhance adoption. SVS has been tracking gift card spending data for nearly a decade, and regularly generates proprietary reports that break down gift card spending growth by category and dollar value, in addition to seasonal surveys tracking consumer sentiment on gift card use.

Results of this survey indicated that one in three males prefer to buy digital cards, and nearly 40 percent of consumers aged 18 to 35 expressed a preference for digital cards.  Sixty-four percent of consumers surveyed had not yet bought or received a digital or mobile gift card, although Millennials numbered 29 percent of the survey population who had done so. 

Analysis from this study on digital and mobile adoption reflected how people are actually shopping, and how they are feeling about switching from physical to (virtual) digital cards. It identified a geographic aspect to consumer preferences, with physical gift cards being the preferred mode for face-to-face exchanges and digital cards becoming more popular and socially acceptable when gift giving cannot be done in person.

“One of the less intuitive findings from this research is that there was a modest increase in comfort level over redeeming cards via mobile,” says Jenny Parris, head of global marketing and product at SVS and study author. “And as might be guessed, there was a spike in digital adoption among younger consumers, as well as males. Most importantly, however, there are many steps retailers can take right now, to speed consumer migration to digital and mobile formats.” 

Source: Stored Value Solutions