2,341S C R E E N E D

2,341 consumers screened to have

purchased or received traditional/plastic

or e-gift closed loop gift cards within the

past 12 months

2016O C T O B E R

Survey conducted October 2016

DATAUSAGE

Data from survey was weighted to

correspond to census distributions

3,650R E S P O N D E N T S

Survey of 3,680 consumers, aged 18 and

up

5. #whereitsappIn 2016, we’re seeing more consumers embracing mobile apps for storing their gift cards, for

convenience and to keep from losing them.

P R I M A R Y Q U E S T I O N

How interested are you in using an app to store gift card information on your mobile phone?

What are the main reasons you might want to

store gift card information on your mobile

phone?

F U R T H E R R E S U L T SR E S U L T S

37%R E S P O N D E D

More convienent

37%R E S P O N D E D

Don’t have to carry cards

33%R E S P O N D E D

Less likely to lose the cards

People are ready for mobile gift card apps—as long as they’re secure. #whereitsapp Share on social

2 0 1 62,341 respondents

50% of consumers are interested in storing gift card information on an app.

50%

4. #treatyourself

S U R V E Y Q U E S T I O N

Did you purchase a physical or e-gift

card for yourself?

R E S U L T S

Self-purchase of gift cards is rapidly becoming the new tender type for many consumers. Driven by

loyalty points, rewards, and discounts, more consumers are purchasing gift cards for their own use than

in years past.

How are you packaging and marketing gift cards? Because they’re not just gifts anymore. They’re the new currency. #treatyourself Share on social

More than half of digital gift card purchasers self-purchase.

53%

2 0 1 6 - E G I F T C A R D S589 respondents

9%G R O W T H

Since 2014, self-purchase of physical cards has

grown by 9%.

13%G R O W T H

Since 2014, self-purchase of digital cards has grown

by 13%.

589 respondents

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3. #keepspendingOverspending the amount of a gift card is the new normal. 75% of consumers with gift cards in 2016

spent $27.74 more than the amount on the card, up from 69% last year.

S U R V E Y Q U E S T I O N

In the last 12 months, when paying with your gift card, did you spend more

than the value of the card?

R E S U L T S

69% 75%

2 0 1 5 2 0 1 61,144 respondents 1,117 respondents

Three-quarters of consumers with gift cards spend more than the value of the card.

Market to your consumers with the idea that they will overspend, with special deals, bundles, and the option for auto-reload. #keepspending Share on social

Ready to evolveyour gift cardstrategy?Contact a First Data representative

or visit firstdata.com.

Call Us

Give us a call anytime-we’d love to hear from you.

866-965-8330

Email

Email us and we’ll get right back to you:

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©2009-2016 First Data Corporation. All Rights Reserved.The FIRST DATA name, logo and related trademarks and service marks are owned by First Data Corporation and are registered or used in the U.S. and many foreign countries. All trademarks, service marks and trade names referenced in this material are the property of their respective owners.

As the 2016 Consumer Insight Study shows, consumers, whether they

are Socializers, the MTV Generation, or the Maturists, love the range of

choices they have for gift cards—physical, digital, and mobile. Card

purchasing goes beyond gifting, as more people self-purchase cards to

use in place of cash or credit.

Savvy gift card providers should embrace and promote the mobile gift

card app, which offers the possibilities of auto-reload, convenient

transactions, and personalized marketing and customer service.

Customers are ready.

The future of gift cards2 0 1 6 P R E P A I D C O N S U M E R

I N S I G H T S S T U D Y

Explore the report

People want choice, whether it’s the convenience of mobile gifting apps or finding that perfect gift card for Mom. #shifthappens

Share on social

72%O F R E S P O N D E N T S

purchased or received physical gift cards.

51%O F R E S P O N D E N T S

purchased or received digital gift cards.

The average number of physical gift cards purchased has risen for the last four years from 4.8 to 5.9.

R E S U L T S

2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 61,420 respondents 576 respondents 1,089 respondents 1,052 respondents 1,022 respondents

4.8 5.1 4.7 5.5 5.9

2.#shifthappensThe gift card market is shifting, but don’t toss your plastic cards. While consumers continue to embrace

digital gift cards, physical gift cards aren’t going anywhere, with the the average number of physical

cards purchased rising steadily in the last four years.

S U R V E Y Q U E S T I O N

Approximately how many physical gift cards in total have you purchased in

the last 12 months?

1. #threescompanyWe found that three major consumer groups are driving gift card adoption and spending. Of these three

In addition to choice, your audience matters. Different age groups purchase differently. #threescompany Share on social

2,341S C R E E N E D

2,341 consumers screened to have purchased or

received traditional/plastic or e-gift closed loop

gift cards within the past 12 months.

2016O C T O B E R

Survey conducted October 2016.

Data from survey was weighted to correspond to

census distributions.

3,650R E S P O N D E N T S

Survey of 3,650 consumers,

aged 18 and up.

6. #makeitpersonal

S U R V E Y Q U E S T I O N

How interested would you be in receiving electronic notifications (email, text messages, etc.) about balances or special

offers from a merchant whose gift card you had stored in an app on your mobile phone?

R E S U L T S

More than half of respondents are interested in receiving some kind of notification (email, text, push)

about gift card balances and special offers.

Personalized service is key to marketing success, and mobile gift card apps give you the platform to engage with customers and cardholders. #makeitpersonal Share on social

Across all ages groups, 78% are at least somewhat Interested in email or text notifications about balances or special offers.

3 5 T O 5 42,341 respondents

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The gift card as we know it is transforming into something bigger. Make no mistake, gifting of physical cards is as strong as ever. But buyers are adopting digital gift cards now more than ever, embracing the convenience of mobile apps and gift cards as the new currency. As busy consumers do more on their mobile devices, they are embracing mobile apps and reloadable gift cards as a new form of tender.

Our 2016 Consumer Insights Study shows six major trends that are reshaping the industry and point to tremendous opportunity for retailers and financial organizations to engage with consumers in new and exciting ways. We also see three consumer groups driving gift card purchases, each with its own distinct patterns and motivation.

Six trends shaping the industry:

Keep spending

Treat yourself

Where it’s app

Make it personal

Three’s company

Shift happens

The SocializersAGES 18-34

The MTV GenerationAGES 35-54

The MaturistsAGES 55+

Are most likely to purchase gift cards

for self-use

On average, spend the

most

Percent of respondents who

purchased more gift cards in 2016

physical: 251, e-gift: 167 physical: 405, e-gift: 259 physical: 366, e-gift: 163

21% P H Y S I C A LG I F T C A R D S

34% E - G I F TC A R D S

40% P H Y S I C A LG I F T C A R D S

44% E - G I F TC A R D S

$75 P H Y S I C A LG I F T C A R D S

$84 E - G I F TC A R D S

Cautious Self-sacrificing Less digitally savvy

Work to live Researchers and skeptics Brand loyalty

Value hunters Convenience junkies Love “authentic” experiences

A D O P T E R SS E L F -

P U R C H A S E R SS P E N D E R S