A new report sees strong interest in the digital prepaid gift card market. According to findings from prepaid gift card firm InComm
, 89 percent of consumers have purchased two or more gift cards through websites or mobile devices, while 94 percent intend to purchase the same amount over the holiday season.
The findings, which drew on the online responses of more than 500 consumers about their purchasing habits and plans for the holidays, also found that almost 90 percent of respondents between ages 18--25 said that they are more interested in buying digital gift cards today than they were two to three years ago. In addition, 96 percent of these Millennials said they want to be able to store gift cards digitally on their phone, and 81 percent want to be able to use those gift cards by having their phone scanned at the cash register.
"Retailers can drive online sales as well as brick and mortar traffic by offering consumers both physical and digital cards and ensuring a retail process that accounts for the redemption of prepaid cards through mobile means," said Mike Fletcher, general manager of digital solutions for InComm, in a statement.
Of those who have bought a gift card from an online website or a mobile website/app, 29 percent said they purchased a physical gift card, while 32 percent bought a digital gift card. Thirty-nine percent have purchased both.
The study also found an interest in the purchase of multiple cards. Almost one-quarter of respondents (23 percent) who plan to buy gift cards online or via mobile said they plan to purchase five or more gift cards.
"This study demonstrates the continued consumer adoption of digital prepaid cards across all age demographics. It also shows the significant increase in digital prepaid being employed by consumers for self-use. Retailers need to keep these consumer trends in mind in order to continue providing consistent excellence in customer service and support across all channels."
The complete results can be found here