New Insights.
New Opportunities
to Seize.
The 2015 Prepaid
Consumer Insights Study
2,385
RESPONDENTS
2015*
SEPTEMBER
DATA
2,385 respondents were screened to
have purchased or received closed-loop
plastic or virtual gift cards in the past
12 months
Surveys were conducted
in September 2015
Data from both surveys was
weighted to correspond to
census distributions
3,392
RESPONDENTS
Online surveys were distributed
nationally to 3,392 U.S. consumers
over the age of 18
USAGE
Transforming the
Customer Experience
Every day, as consumers have less and less time on their hands
to manage their personal and professional lives, their demand
for almost instantaneous engagement from their favorite brands
is greater than ever.
This year’s Consumer Insights Study not only shows how vital a
robust prepaid gift card program is to retailers’ broad marketing
strategy, but also illustrates just how firmly mobile wallets and
the popularity of online shopping have been embraced by
consumers and their desire for faster and more personalized
shopping experiences.
*Conducted by First Data showcasing the latest consumer attitudes
and behaviors toward plastic and virtual prepaid gift cards.
The age of the mobile-activated consumer has arrived.
Recognizing the Marketplace
While the popularity of virtual gift cards is still on the rise, this upward trend isn’t necessarily taking market
share away from plastic gift cards. In fact, 25% of consumers are purchasing more physical gift cards than
they did last year. That’s why, now more than ever, it is critical to have a strategy that incorporates both
physical and virtual cards.
Plastic Cards
Are you purchasing more plastic gift cards in 2015 than last year?
1,052 respondents in 2015
25
%
More Than Last Year
58
% Same As Last Year
Fewer Than Last Year
17
%
Virtual
Are you purchasing more virtual gift cards in 2015 than last year?
577 respondents in 2015
More Than Last Year
41
%
Same As Last Year
11
%
48
%
Fewer Than Last Year
Offering the right mix of virtual and plastic gift cards is more important than ever.
Gift Cards = More Revenue & Foot Traffic
Compared to 2014, respondents said they spent an average of $58.95 on plastic cards, which is up from $57.64. The average
spend on virtual cards was $56.98, up from $54.90. Better still, 52% said that receiving a gift card prompted them to visit a
store more frequently and 40% said they wouldn’t have even visited if they hadn’t received a gift card.
Driving Revenue
On average, about how much did you spend
On average, about how much did you spend
on plastic gift card(s) in the last 12 months?
on virtual gift card(s) in the last 12 months?
2014 SPEND
2015 SPEND
2014 SPEND
2015 SPEND
$5764
$5895
$5490
$5698
PLASTIC
CARDS
PLASTIC
CARDS
VIRTUAL
CARDS
VIRTUAL
CARDS
1,052 respondents in 2015
511 respondents in 2014
1,089 respondents in 2014
577 respondents in 2015
Driving Foot Traffic
In the past 12 months, has receiving a gift
In the past 12 months, has receiving a gift
card prompted you to visit a store you
card prompted you to visit a store more
otherwise would not have gone to?
often than you would have otherwise?
40
52
%
%
SAID THEY WERE MORE LIKELY TO
VISIT A STORE THEY WOULD NOT HAVE
GONE TO BECAUSE OF GIFT CARDS.
SAID THEY WERE MORE LIKELY
TO VISIT A STORE MORE OFTEN
BECAUSE OF GIFT CARDS.
1,207 respondents in 2015
Gift cards are a proven way to increase foot traffic and overall spending.
Overspending is On The Rise
Consumers are steadily increasing the amount they spend beyond the value of their gift cards.
In fact, nearly 2/3 of respondents said they spent more than the value of their gift cards this year.
And, over the last three years, overspend has increased by almost $7!
In the last 12 months, when paying with your gift card,
On average, about how much more did you spend
did you spend more than the value of the card?
beyond the original value of the gift card(s) you
received in the last 12 months?
$27
41
$23
79
$20
29
2015 OVERSPEND
2014 OVERSPEND
SPENT MORE THAN THE
VALUE OF THEIR GIFTCARDS.
1,144 respondents in 2015
2013 OVERSPEND
786 respondents in 2015, 749 respondents in 2014
598 respondents in 2013
Gift cards continue to be a major source for increased revenue with no signs of slowing down.
Past the Tipping Point:
Mobile-Activated Consumers Make e-Gifting Their Own
Once again, this year we saw that consumers would prefer to use one app to store their gift cards on their
mobile devices. Mobile wallets, such as Gyft, are rapidly becoming the virtual equivalent of gift card malls in
retail locations. In order to drive revenue, retailers must be in both virtual and physical 3rd party channels.
2014
2015
64
%
How many
respondents would
store their gift cards
using one app on their
mobile phone?
58
%
1,420 respondents in 2015
1,321 respondents in 2014
Mobile apps are a critical component of any successful gift card strategy.
Recognize. Reward. Incentivize.
$10 BONUS BUCKS
As the adoption of mobile wallets and the popularity of online shopping continue to grow, so does the
desire for instantaneous perks and a superior customer experience. For retailers who want to give their
customers the incentives, rewards and recognition they crave, gift cards are proving to be the ideal tool.
$10BON
BONUS
BUCKS
$10
US BUC
KS
If you were making a purchase at a store, which of the following would
you prefer to receive as a reward/bonus for your purchase?
64
%
16
%
9
%
$10 GIFT CARD
$10 OFF COUPON
$10 BONUS BUCKS
2,385 respondents in 2015
Gift card incentives and rewards drive sales and loyalty.
Virtual is Being Adopted by All Age Groups
While mobile technology continues to revolutionize the gift card experience as a whole, consumers’
relationship with gift cards is constantly evolving. Gift card self-purchasing has not only more than
doubled in the past 3 years, virtual gift card self-purchasing is a growing trend across all generations,
not just millennials - making e-gifting the go-to motivation tool for gift card purchases.
Percent of respondents who purchased
gift cards for themselves:
45
%
40
%
20
%
2015
2014
2013
Percent of 2015 respondents who self-purchased virtual gift cards by generation:
MILLENNIALS
49
BABY BOOMERS
GENERATION X
%
44
42
%
%
207 millennial respondents, 212 generation x respondents, 158 baby boomer respondents in 2015
With self-purchasing at an all-time high—gift cards aren’t just for giving anymore.
Innovate Now!
To continually drive incremental revenue,
attract new customers, and boost foot
traffic, retailers must remain focused
on implementing the newest and most
innovative gift card technologies available.
By always offering the right mix of virtual
and physical gift cards to their customers,
merchants will not only be able to keep pace
with their ever-changing needs, but also
repeatedly surpass their expectations, and
gain the competitive edge they need to win
in this rapidly evolving marketplace.
Ready to evolve your
gift card strategy?
Email
[email protected]
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