Consumers are Treating Themselves with eGift Cards
eGift card purchases are growing, but people are buying them for themselves, not to give as presents, according to a survey conducted by Blackhawk Network.
Plastic gift cards remain popular. Nearly all of the respondents in the survey (86%) purchased a plastic gift card in the past year and almost half of those surveyed (43%) bought these cards for someone else.
Only 58% of the respondents purchased eGifts, and, rather surprisingly, only 27% of those purchasers used it as a present.
eGift popularity is rising, though, and it may be due to the fact that consumers can buy them at a discount or through a reward or rebate offering. 37% of the eGift buyers purchased it at a discounted rate, and 65% bought it as a part of a rebate or reward program. Nearly all of these recipients (86%) kept the eGift for themselves.
Millennials purchase eGifts more than any other age group. 76% said they have purchased eGifts and 71% have received one as a present.
“Gift cards remain incredibly popular and the expansion into digital forms has provided new opportunities for both retailers and consumers,” said Teri Llach, chief marketing officer at Blackhawk Network, a pioneer of prepaid gift cards, payments tools and rewards delivered via a robust and convenient network. “Our research shows that plastic gift cards are used primarily for gifting, while egifts are more often used for self-use. Digital gifts, such as egifts and e-codes, are helping to drive rewards and incentive programs in an incremental way.”
Blackhawk surveyed 1,000 American consumers online during October.