POS technology provider InComm has released research highlighting consumer shopping trends for purchasing digital and physical gift cards from websites and mobile devices. Of the consumers surveyed, 72 percent have previously bought a gift card from an online website or mobile website/app. Respondents answered questions about their purchasing habits and their intentions for purchasing gift cards from websites and mobile devices — as well as digital cards specifically — this holiday season and beyond. Highlights include:

• 71 percent intend to purchase at least one gift card from an online website or mobile website/app this holiday season, while 74 percent agree that they are likely to purchase at least one digital gift card
• 85 percent of respondents between 18-35 agree that they’re likely to purchase at least one digital gift card this holiday season
• Of those who intend to purchase gift cards from online websites or mobile websites/apps this holiday season, nearly 20 percent plan to purchase 5 or more gift cards; 73 percent between 2-5
• Nearly 90 percent of respondents between 18-35 agree that they are more interested in purchasing digital gift cards now than they were two to three years ago
• 77 percent of respondents between 18-35 prefer to have a digital gift card scanned from their phone rather than carry an email printout
• 53 percent of total respondents, and 79 percent of those between 18-35, are interested in storing and using gift cards on their phones
• 55 percent of total respondents, 79 percent of those between 18-35, agree that they’re interested in storing digital gift cards on their phone for self-use
• Nearly 23 percent of those who have purchased gift cards from online websites or mobile websites/apps purchase 5-10 cards annually

2014 holiday intentions

Seventy-one percent of respondents intend to purchase at least one gift card from an online website or mobile website/app this holiday season, while 74 percent agree that they are likely to purchase at least one digital gift card. About 85 percent of respondents between 18-35 and 75 percent of those between 36-55 agree that they’re likely to purchase at least one digital gift card this holiday season.

Participants were asked how many gift cards they intend to purchase from online websites or mobile websites/apps this holiday season:

• 8 percent are likely to buy 1
• 53 percent are likely to buy 2-3
• 20 percent are likely to buy 4-5
• 19 percent are likely to buy more than 5

Purchasing physical vs. digital gift cards

Of those who have bought a gift card from an online website or a mobile website/app, 41 percent have purchased a physical gift card, while 32 percent have purchased a digital gift card and 27 percent have purchased both. A digital gift card was defined as a card that is emailed to the recipient, and a physical gift card defined as a traditional gift card that is shipped to the recipient. When asked how many gift cards they purchase from online websites or mobile websites/apps annually, respondents answered:

• 33 percent purchase 1
• 40 percent purchase 2-4
• 17 percent purchase 5-7
• 6 percent purchase 8-10
• 6 percent purchase more than 10

When deciding whether to purchase a digital gift card or a physical gift card, nearly one-third state that it depends on who they’re buying the card for. In fact, 77 percent prefer to have the option to purchase either a physical gift card or a digital gift card when purchasing gift cards from online websites or mobile websites/apps.

Digital and mobile on the rise

Seventy-nine percent agree that they’re likely to purchase at least one digital gift card in 2015, with 89 percent of those between 18-35 stating they are likely to purchase at least one digital gift card in 2015. Also, 80 percent agree that they’re more interested in purchasing digital gift cards now than they were 2-3 years ago, with numbers higher among younger respondents:

• Ages 18-25: 90 percent agree
• Ages 26-35: 88 percent agree
• Ages 36-45: 83 percent agree
• Ages 46-55: 83 percent agree
• Ages 56-65: 71 percent agree
• Over 65: 63 percent agree

Half of respondents agree that if they receive a digital gift card, they prefer to have the card scanned from their phone rather than carry an email printout. These numbers are higher among younger respondents:

• Ages 18-25: 78 percent agree
• Ages 26-35: 75 percent agree
• Ages 36-45: 60 percent agree
• Ages 46-55: 45 percent agree
• Ages 56-65: 29 percent agree
• Over 65: 16 percent agree

Further, 53 percent of respondents are interested in storing and using gift cards on their phones. Again, interest is higher among younger respondents:

• Ages 18-25: 78 percent agree
• Ages 26-35: 79 percent agree
• Ages 36-45: 65 percent agree
• Ages 46-55: 53 percent agree
• Ages 56-65: 33 percent agree
• Over 65: 16 percent agree

Also, 55 percent of respondents agree that they’re interested in storing digital gift cards on their phone for self-use, such as for budgeting purposes, to earn loyalty rewards, etc. Among those aged 18-35, 75 percent agree that they’re interested.

Gift card shopping preferences

Respondents answered the reasons that they have purchased digital gift cards:

• 61 percent said instant delivery
• 33 percent said easier to send
• 27 percent said easier and quicker for me to purchase
• 24 percent said harder to lose
• 21 percent said are a cool gift to give
• 20 percent said easier to redeem
• 19 percent said environmentally friendly
• 15 percent said the recipient prefers digital gift cards

Respondents stated which features/capabilities are important to the purchasing experience when buying gift cards from online websites or mobile websites/apps:

• 72 percent said security
• 56 percent said a variety of denominations available
• 36 percent said the ability to personalize the message
• 38 percent said a variety of designs to choose from (birthday, holiday, etc.)

Gift cards and loyalty programs

When asked if they participate in a loyalty program (earning points for purchase), 74 percent of respondents stated that they do. Fifty-four percent participate in 2-3 loyalty programs, 20 percent in 4-5, and 19 percent in 1. When asked how they use their points to purchase, 64 percent said cash rebate, 59 percent said gift card, 33 percent for a product, 27 percent said airline miles, and 3 percent said experiences (wine tasting, concert, etc.).

When using loyalty points for a gift card, 38 percent of respondents prefer the option of choosing between a physical or digital gift card.

Cash and gift cards are top choices by far when it comes to the types of rewards respondents prefer to receive from an employer. Further, 54 percent of respondents would consider switching their utility, cable or Internet provider if they were offered a gift card incentive for switching. When asked if they were to receive a reward for making a purchase, in which format would they prefer to receive the reward, 54 percent answered an open-loop prepaid card, while 39 percent answered a gift card and 7 percent said mail-in rebate.