First Data’s 18th Annual Prepaid Consumer Insights Study Shows Growth Trends in Branded Currency
November 28 2018 - 07:45AM
Business Wire
Study finds that consumers, on average, spend
$59 over the original value of the gift card they receive
Results show that consumers plan to spend 55%
of their annual gifting budget on gift cards
The average consumer is spending $59 more than the original
value of their gift card, up $21 from 2017, according to the 2018
Prepaid Consumer Insights Study released by First Data (NYSE: FDC)
today. The report shows significant lift is being generated from
gift card spend and continues to highlight a year-over-year branded
currency growth trend; for the fifth consecutive year, when
purchasing with a gift card, consumer overspend has increased.
First Data’s 18th Prepaid Consumer Insights Study looks at
trends in branded currency, giving business owners insight into how
gift card solutions can be a boon for their business. This year’s
study is based on survey data from more than 2,000 U.S. consumers
and aggregates responses across four unique age groups: Linksters
(ages 18-23), Socializers (ages 24-37), the MTV Generation (ages
38-53), and Maturists (age 54+).
“Business owners continue to have a tremendous opportunity to
drive sales, build their brand, and increase customer loyalty by
investing in a robust gift card program,” said Dom Morea, Senior
Vice President, Head of Gift Solutions at First Data. “Our study
shows that gift cards, or branded currency, are not only a
potential growth engine for businesses, but are becoming the
preferred gift for both purchasers and receivers alike.”
Businesses Gain a Heavy Lift from Gift
For the fifth year in a row spending lift from gift cards is on
the rise, and business owners should take notice. On average, for
every gift card purchased, consumers are spending a whopping $59
more than the original value of their card, a $21 spike from just a
year ago. This is especially true for fine dining and fast casual
restaurants, along with drug stores. But spending spiked most on
supermarket gift cards with consumers spending, on average, 94%
more than the original value of their card.
Gift Cards: A Preferred Brand of Currency
Consumers love to give gift cards, more so than any other gift.
And more and more receivers of gifts prefer gift cards to physical
gifts too. With this in mind, here are a few specific trends to
make note of:
- 47% of Linksters (ages 18-23) prefer to
have a physical gift card over any other traditional gift
- Consumers plan to spend 55% of their
annual gifting budget on gift cards
- 33% of purchasers will spend more on a
gift card than they will on a traditional gift
Treat Yourself: Self-purchasing on the rise
Gift cards aren’t just used to treat others on birthdays,
holidays, and special occasions. Self-purchasing continues to be on
the rise, with consumers finding value in buying gift cards for
their own personal use. In 2018, 64% of consumers bought a gift
card for their own personal use, up from 58% in 2017. Socializers
(ages 24-37) saw the biggest jump in self-purchasing rates at 71%,
up from 56% in 2017. Fast casual gift cards were the most popular
type of gift cards for self-purchasers.
Additional highlights of the study included:
- The average number of physical gifts
cards purchased by consumers increased from 6.5 per year in 2017 to
8.0 in 2018; e-gift card purchases also increased from 6.1 per year
to 6.3.
- 33% of consumers reloaded a gift card;
with Linksters (ages 18-23) reloading the most at 61%.
- Up to 50% of Socializers (ages 24-37)
have an interest in buying gift cards through a bank website or
mobile app.
- 52% of consumers would prefer to have a
single app, like Gyft, that manages all of their gift cards.
To learn how your business can drive sales, bring in new
customers, and extend your reach using First Data’s Gift Solutions,
please visit www.giftsolutions.com.
For additional information about the 2018 Prepaid Consumer
Insights Study, please see the dedicated page on First Data’s
website.
About First Data
First Data (NYSE: FDC) is a global leader in commerce-enabling
technology, serving approximately 6 million business locations and
4,000 financial institutions in more than 100 countries around the
world. The company’s 22,000 owner-associates are dedicated to
helping companies, from start-ups to the world’s largest
corporations, conduct commerce every day by securing and processing
more than 3,000 transactions per second and $2.4
trillion per year. For more information,
visit www.firstdata.com and follow us on Twitter
at @FirstData and LinkedIn.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20181128005257/en/
Andrea DuffyFirst DataPhone:
646-984-0240Email: Andrea.duffy@firstdata.com
First Data (NYSE:FDC)
Historical Stock Chart
From Feb 2024 to Mar 2024
First Data (NYSE:FDC)
Historical Stock Chart
From Mar 2023 to Mar 2024