2016 u.s. prepaid consumer insights - constant...

© 2016 First Data Corporation. All Rights Reserved. © 2016 First Data Corporation. All Rights Reserved.

Prepared By: David P. Olener, Director of Market Research

2016 U.S. Prepaid Consumer Insights

November 2, 2016

© 2016 First Data Corporation. All Rights Reserved.

OBJECTIVES & METHODOLOGY

2


Objectives

• Quantify percent of U.S. consumers purchasing and receiving plastic and e-gift prepaid cards

• Identify behaviors associated with closed-loop prepaid card purchasing, including a self-purchaser analysis

• Identify behaviors associated with closed-loop prepaid card receiving, including reloading incidence and preferences

• Determine interest in various gift card features such as: ‒ Multi-pack offerings ‒ Mobile app capabilities

• Provide tracking comparisons for comparable measures from prior years

3


Methodology

Nationally distributed surveys of U.S. consumers

• Gift Card Incidence Survey: ‒ Online survey of 3,650 consumers, ages 18+

• Closed-Loop Gift Card Tracking Survey: ‒ Online survey of 2,341 consumers ages 18+ ‒ All screened to have purchased or received traditional/plastic or e-gift closed loop

gift cards within the past 12 months

• Population corresponds to Census distributions

• Survey conducted October 2016

4


Methodological Differences from 2015

NONE

5


RESEARCH FINDINGS

6


Overall Gift Card Trends

7


Physical Card56% Physical Card

52%

Physical Card36%

Physical Card72%

E-Gift Card15%

E-Gift Card36%E-Gift Card

31%

E-Gift Card51%

Purchased or Received Purchased Received Purchased and Received

Physical Card E-Gift Card

Physical gifts cards continue to be more popular than e-gift cards

Overall Gift Card Incidence (Open Loop and Closed Loop)

Net: Physical or E-Gift Card

Purchased Received

64% 63%

[n=3650]

8


Overall physical gift card usages continues to decline. Overall Physical Gift Card Incidence (Open Loop and Closed Loop)

93%

72%

82%

61%

90%

70%76%

56%

88%

69%74%

55%

84%

65% 65%

45%

77%

58% 57%

38%

75%

59%56%

41%

72%

56%52%

36%


2010 [n=2768] 2011 [n=3432] 2012 [n=2294] 2013 [n=2099] 2014 [n=3724] 2015 [n=3392] 2016 [n=3650]

9


51%

28%

39%

16%

50%

30%34%

15%

51%

31%36%

15%


2014 [n=3724] 2015 [n=3392] 2016 [n=3650]

Overall E-gift card usages has been more stable than physical gift card usages over the past three years, with small consistent increases in purchasing and more volatility in receiving.

Overall E-Gift Card Incidence (Open Loop and Closed Loop)

10


Gift Card Purchasing

11


11%

21%17%

13%10%

14% 14%9%

21%

13% 13% 12%14%

17%14%

18%14% 15%

11%15%

12%11%

21%

12% 11% 12% 13%19%

13%

19%16%

10% 11% 11%

19%

1 2 3 4 5 6-9 10+

2012 [n=1420] 2013 [n=576] 2014 [n=1089] 2015 [n=1052] 2016[n=1022]

Averages number of physical gift cards purchased has increased.

Thinking about physical gift cards that can only be used at a single merchant or retailer, approximately how many gift cards in total have you purchased in the last 12 months?

Averages # of Physical Gift Cards Purchased

2012 2013 2014 2015 2016

4.8 5.1 4.7 5.5 5.9

12


More than half of e-gift card purchasers buy one or two cards, with the averages number purchased at 4.

How many e-gift cards have you purchased in the last 12 months?

25% 25%

10% 9% 9% 11% 11%

27% 29%

10%7% 7% 8%

12%

24% 24%

13% 10% 11% 8% 9%

1 2 3 4 5 6-9 10+

2014 [n=512] 2015 [n=577] 2016 [n=589]]

Averages # of E-Gift Cards Purchased:

2015 2016

4.1 4.0

13


Fewer e-gift cards

More e-gift cards

About the same

number

Most do not report a change in physical gift card purchase frequency. A higher percentages report an increase in E-Gift card purchases.

Compared to 2015, would you say you are purchasing…cards in 2016 than last year?

About the same

number

More single

merchant physical

gift cards

Fewer single

merchant physical

gift cards

[n=589] [n=1022]

14%

18% 68%

10%

29%

61%

Physical Gift Cards E-Gift Cards

14


Millennials were much more likely to have purchased more physical or e-gift cards than those ages 55 and up. The 55 and up group was much more likely to have purchased the same number as last year.

Purchased same number of physical gift cards ages 18 to 34 – 55% ages 35 to 54 – 68% ages 55 and up – 76%

Purchased same number of e-gift cards ages 18 to 34 – 51% ages 35 to 54 – 63% ages 55 and up – 67%

Purchased more physical gift cards ages 18 to 34 – 21% ages 35 to 54 – 18% ages 55 and up – 17%

Purchased more e-gift cards ages 18 to 34 – 34% ages 35 to 54 – 27% ages 55 and up – 28%

Purchased fewer e-gift cards ages 18 to 34 – 16% ages 35 to 54 – 10% ages 55 and up – 5.5%

Purchased fewer physical gift cards ages 18 to 34 – 24% ages 35 to 54 – 14% ages 55 and up – 7%

15


27%27%

26%23%23%

18%15%

14%14%

12%9%

6%5%

Coffee shopDiscount/Big boxDepartment store

Online-only merchantsSpecialty retail store

EntertainmentFine dining restaurantFast casual restaurant

Fast food restaurantFood supermarket or grocery store

Gas station or convenience storeIndependent retail stores

Drug store

Coffee shops, discount stores and department stores are the leading merchant category for physical gift card purchases, with coffee shops having a slight lead.

% Purchasing physical gift card for use at each type of merchant

[n=1022]

16


Purchasers ages 18 to 34 are the primary drivers of which merchant categories are at the top for physical purchases

8%

1%

10%

13%

4%

17%

11%

20%

25%

28%

11%

22%

19%

23%

8%

7%

7%

13%

7%

16%

15%

25%

25%

24%

19%

28%

23%

29%

7%

8%

8%

9%

10%

12%

17%

23%

23%

25%

25%

30%

30%

30%

0% 5% 10% 15% 20% 25% 30% 35%

Other

Drug Store

Gas Station

Supermarket

Small Business

Fine dining

Fast Food

Specialty Retail

Fast Casual

Department Store

Entertainment

Discount/Big Box

Online only

Coffee

Age 18 to 34

Age 34 to 54

Age 55 and up

17


Averages spend on physical gift cards has remained about the same in 2016.

Averages amount spent on physical gift cards purchased for use at each type of merchant [among respondents who purchased at the location]

Bases vary by merchant type. 2016 Range: n=55 to n=275

$30.82

$36.78

$39.05

$43.58

$48.26

$49.75

$49.80

$53.38

$53.63

$56.95

$59.52

$60.72

$61.13

$- $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00

Fast Food

Coffee

Gas Station

Entertainment

Fast Casual

Drug Store

Specialty Retail

Small Business

Discount/Big Box

Department Store

Supermarket

Online only

Fine dining

18


physical gift card purchasers ages 55 and up spend more on averages in each merchant category.

$51.22

$43.11

$30.83

$56.61

$69.89

$40.75

$71.00

$87.00

$69.69

$73.93

$63.50

$47.64

$66.66

$31.63

$35.79

$27.34

$42.35

$56.83

$42.42

$46.53

$37.15

$43.17

$57.47

$52.62

$49.18

$56.80

$28.76

$31.86

$35.81

$45.26

$45.46

$46.78

$49.29

$50.63

$52.28

$52.64

$53.34

$53.63

$59.13

$- $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00 $90.00 $100.00

Gas Station

Coffee

Fast Food

Fast Casual

Supermarket

Entertainment

Drug Store

Small Business

Discount/Big Box

Online only

Department Store

Specialty Retail

Fine dining

Age 18 to 34

Age 35 to 54

Age 55 and up

19


Discount/big box and department store physical gift cards are purchased in greater volumes than other merchant types, followed closely by fast casual and online only stores.

Averages number of physical gift cards purchased for use at each type of merchant [among respondents who purchased at the location]

Bases vary by location. 2016 Range: n=55 to n=275

1.6

1.8

2.1

2.2

2.3

2.3

2.4

2.5

2.6

2.7

2.7

2.8

2.9

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5

Drug Store

Small Business

Entertainment

Specialty Retail

Fine dining

Coffee

Gas Station

Supermarket

Fast Food

Online only

Fast Casual

Department Store

Discount/Big Box

20


Averages number of cards purchased by merchant category by ages group

1.8

2.0

2.0

2.1

2.5

2.6

2.7

2.9

3.3

3.3

3.4

3.4

3.5

1.9

2.3

1.7

2.3

3.2

2.8

2.4

2.7

1.8

2.5

2.3

2.3

2.4

1.8

1.7

1.5

1.8

2.8

1.7

1.9

2.4

1.6

2.3

1.4

2.1

2.0

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0

Small Business

Entertainment

Drug Store

Specialty Retail

Discount/Big Box

Gas Station

Coffee

Online only

Fine dining

Department Store

Supermarket

Fast Casual

Fast Food

Age 18 to 34

Age 34 to 54

Age 55 and up

21


Most purchasers might or would be willing to purchase a physical gift card from a small business or independent retailer (among those who have not purchased from those establishments)

5.6%

42.8%

39.7%

11.8%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

Would Not Might Would Not sure

[n=956]

Would you purchase physical gift cards from a small merchant or independent retailer in the future? [among respondents who have not purchased physical gift cards from small merchants]

22


Of those who would or might purchase a physical gift card at a small business or independent retailer, only 16% say they are actually likely to do so in the next 12 months.

2%

14%

53%

24%

7%

0%

10%

20%

30%

40%

50%

60%

Extremely likely Somewhat likely Neither Somewhat unlikely Extremely unlikely[n=576]

How likely are you to purchase physical gift cards from a small merchant or independent retailer in the next 12 months? [among respondents who would or might purchase physical gift cards from small merchants]

23


Of those who would or might purchase a physical gift card at a small business or independent retailer, nearly 44% are concerned a recipient would not use a gift card from that type of establishment.

[n=576]

43.6%

26.2%

12.8%

9.4% 8.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

Not sure recipient woulduse

Concerned theestablishment will go out of

business

I don't shop at smallbusinesses/independent

retailers

Concerned the merchantwon't accept the card

Other

Please tell us reasons you would not purchase a physical gift card from a small business or independent retailer? [among respondents who would or might purchase physical gift cards from small merchants]

24


3%

4%

5%

5%

6%

8%

10%

13%

13%

13%

16%

17%

23%

43%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Gas Station

Small Business

Supermarket

Drug Store

Fast Food

Other

Fine dining

Discount/Big Box

Fast Casual

Entertainment

Department Store

Specialty Retail

Coffee

Online only

Online-only merchants continue to dominate in e-gift card purchasing

% Purchasing e-gift card for use at each type of merchant

[n=589]

25


% Purchasing e-gift card for use at each type of merchant

1%

2%

10%

2%

2%

2%

15%

10%

6%

13%

10%

20%

40%

3%

5%

10%

2%

4%

5%

12%

11%

14%

15%

17%

24%

44%

6%

8%

8%

9%

9%

10%

13%

19%

19%

20%

23%

25%

45%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Gas Station

Drug Store

Fine dining

Small Business

Supermarket

Fast Food

Fast Casual

Discount/Big Box

Entertainment

Department Store

Specialty Retail

Coffee

Online only

Age 18 to 34

Age 35 to 54

Age 55 and up

Purchasers ages 18 to 34 are the primary drivers of which merchant categories are at the top for e-gift card purchases

26


Purchasers spend the most on averages at department stores and online only merchants.

Averages amount spent on e-gift cards purchased for use at each type of merchant [among respondents who purchased at the location]


$25.00

$32.27

$33.32

$36.70

$36.84

$37.66

$39.36

$40.28

$40.46

$43.03

$43.24

$52.05

$55.75

$- $10.00 $20.00 $30.00 $40.00 $50.00 $60.00

Drug Store

Fast Food

Gas Station

Coffee

Fast Casual

Supermarket

Small Business

Discount/Big Box

Entertainment

Specialty Retail

Fine dining

Online only

Department Store

27


25.00

49.69

35.15

50.00

31.67

58.33

25.00

36.50

62.50

32.29

30.00

73.64

61.67

42.43

45.48

39.70

41.82

26.92

32.45

34.00

39.76

36.38

36.25

32.00

39.71

45.40

28.60

29.58

33.46

33.67

36.47

37.33

38.92

42.58

42.70

43.25

44.80

51.81

64.26

0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00

Gas Station

Fine dining

Coffee

Discount/Big Box

Fast Food

Supermarket

Drug Store

Entertainment

Specialty Retail

Fast Casual

Small Business

Online only

Department Store

Age 18 to 34

Age 34 to 54

Age 55 and up

Purchasers ages 55 and over spend much more on average at online only stores, specialty retail stores, entertainment merchants and supermarkets, as compared to younger purchasers.

Averages amount spent on e-gift cards purchased for use at each type of merchant [among respondents who purchased at the location]

Bases vary by location. 2016 Range: n=19 to n=255 28


Online only e-gift cards are purchased in greater volumes than other merchant types, followed closely by discount/big box stores.

Averages number of e-gift cards purchased for use at each type of merchant [among respondents who purchased at the location]


1.1

1.5

1.5

1.5

1.9

2.0

2.1

2.1

2.1

2.2

2.2

2.6

2.8

0.0 0.5 1.0 1.5 2.0 2.5 3.0

Gas Station

Drug Store

Small Business

Supermarket

Coffee

Fine dining

Specialty Retail

Fast Casual

Department Store

Entertainment

Fast Food

Discount/Big Box

Online only

29


Purchasers ages 18 to 34 purchased more online only e-gift cards than older purchasers, and fewer discount/big box store and specialty retail store e-gift cards than older purchasers.

Averages number of e-gift cards purchased for use at each type of merchant [among respondents who purchased at the location]

1.0

1.8

3.0

1.0

1.7

2.1

2.5

2.4

2.3

2.4

2.4

2.4

2.6

1.1

1.2

1.1

3.2

1.1

2.3

3.5

2.4

1.7

2.0

1.7

1.8

2.7

1.1

1.5

1.5

1.6

1.7

1.8

1.8

1.8

2.0

2.0

2.1

2.3

3.0

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0

Gas Station

Small Business

Drug Store

Fast Food

Supermarket

Specialty Retail

Discount/Big Box

Entertainment

Coffee

Fast Casual

Fine dining

Department Store

Online only

Age 18 to 34

Age 35 to 54

Age 55 and up

30


Over 70% of purchasers might or would be willing to purchase an e-gift card from a small business or independent retailer (among those who did not purchase from those establishments)

[n=564]

Would you purchase e-gift cards from a small merchant or independent retailer in the future? [among respondents who have not purchased e-gift cards from small merchants]

13%

37%

34%

16%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Would Not Might Would Not sure

31


While, only 20% of those who would or might purchase an e-gift card at a small business or independent retailer say they are actually likely to do so in the next 12 months, this is a higher percentages than for physical gift cards.

[n=372]

How likely are you to purchase an e-gift cards from a small merchant or independent retailer in the next 12 months? [among respondents who would or might purchase physical gift cards from small merchants]

5%

15%

48%

20%

12%

0%

10%

20%

30%

40%

50%

60%

Extremely likely Somewhat likely Neither Somewhat unlikely Extremely unlikely

32


Of those who would or might purchase an e-gift card at a small business or independent retailer, 37% are concerned a recipient would not use a gift card from that type of establishment. Please tell us reasons you would not purchase a physical gift card from a small business or independent retailer?

[among respondents who would or might purchase physical gift cards from small merchants]

[n=372]

37%

28%

17%

12%

6%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Not sure recipient woulduse

Concerned theestablishment will go out of

business

Concerned the merchantwon't accept the card

I don't shop at smallbusinesses/independent

retailers

Other

33


Over 40% of purchasers have purchased a gift card using loyalty points.

Have you ever purchased a gift card using loyalty points?

[n=1182]

41%

54%

5%

0%

10%

20%

30%

40%

50%

60%

Yes No Unsure

34


Almost twice as many purchasers spend more on gift cards than on traditional gifts (23% to 12%, respectively). Almost 2/3 spend about the same amount on gift cards and traditional gifts.

When you purchase a gift card for a gift, would you say you typically spend…?

[n=1182]

23%

12%

65%

0%

10%

20%

30%

40%

50%

60%

70%

More than the value I would have spenton a traditional gift

Less than the value I would have spent ona traditional gift

About the same amount as I would havespent on a traditional gift

35


Of those who purchased gift cards for a holiday or for an event or occasion (e.g., birthday, graduation), most are likely to purchase a particular gift card, even if they do not like the design options.

30% 34%

26%

6% 4%

0%

5%

10%

15%

20%

25%

30%

35%

40%

StronglyAgree

AgreeSomewhat

Neither DisagreeSomewhat

Stronglydisagree

[n=681]

26%

34%

27%

8%

4%

0%

5%

10%

15%

20%

25%

30%

35%

40%

StronglyAgree

AgreeSomewhat

Neither DisagreeSomewhat

Stronglydisagree

[n=557]

Event or occasion gift card purchasers. Rate your agreement with this statement: Even if I dislike the designs, I will still purchase a gift card at that store

Holiday gift card purchasers. Rate your agreement with this statement: Even if I dislike the designs, I will still purchase a gift card at that store

36


Physical card

55.00%

E-gift card31.00%

Both14.00%

Nearly half of those who are buying gift cards for loyalty points are buying for themselves and more than half are buying physical gift cards.

What type of gift card was it (were they)? [among respondents who have purchased a gift card to get loyalty/reward points]

Myself48.00%

Someone else

32.00%

Both20.00%

[n=361]

Did you buy this/these cards for yourself or someone else? [among respondents who have purchased a gift card to get loyalty/reward points]

[n=361]

37


Purchasing to receive loyalty/reward points How many times in the past 12 months have you purchased a gift card (physical or e-gift) to receive loyalty/reward points? Averages of 4.6 gift physical or e-gift cards purchased for loyalty/reward points [n=361]

What percentages of purchasers have purchased gift cards to receive loyalty/reward points? 31% of purchasers have purchased physical or e-gift cards for loyalty/reward points [n=1182]

Purchasers ages 35 to 54 are most likely to purchase a gift card to receive loyalty points, purchasers ages 55 and up are least likely.

38


Fewer than 12% of purchasers have some interested in buying gift cards via social media sites like Facebook or Twitter. Fewer than 11% are likely to do so over the next 12 months.

2.62%

8.12%

13.54% 17.60%

58.12%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

Highly likely somewhatlikely

Neither somewhatunlikely

extremelyunlikely

[n=1182]

How interested are you in purchasing gift cards via social media sites?

How likely are you to purchase a gift card via a social media site in the next twelve months?

39

3.21%

8.63%

18.02%

24.87%

45.26%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

50.00%

Extremelyinterested

Somewhatinterested

Neither Somewhatuninterested

Extremelyuninterested


Purchasing over social media sites

Level of interest in buying gift cards through social media sites such as Facebook or Twitter. ages 18 to 34 – 20% have some interest ages 35 to 54 – 13% have some interest ages 55 and up – 3% have some interest

Likelihood to purchase a gift card through social media sites over the next 12 months ages 18 to 34 – 18% are likely ages 35 to 54 – 13% are likely ages 55 and up – 3% are likely

40


Gift Card Receiving

41


physical gift card Recipients

42


25% 27%

16%13%

7%4%

1%6%

16%

26%

17%13%

7% 6%1%

14%18%

24%

16%12%

8%6%

3%

12%

22% 22%

13% 11% 10%7%

1%

15%20%

25%

15% 13%9%

6%1%

9%

1 2 3 4 5 6 7 8+

2012 [n=1543] 2013 [n=598] 2014 [n=1030] 2015 [n=988] 2016 [n=911]

Averages number of physical gift cards received has decreased

Thinking about physical/plastic gift cards that can only be used at a single merchant or retailer, approximately how many gift cards in total have you received in the last 12 months?

Averages # of Physical Gift Cards Received

2012 2013 2014 2015 2016

3.0 3.6 3.6 4.6 4.2

43


Recipients receive physical gift cards for discount stores, coffee shops and fast casual restaurants more often than other types of merchants.

% Received physical gift card By Retailer Type

4%

5%

6%

8%

11%

13%

14%

14%

19%

22%

23%

27%

27%

27%

0% 5% 10% 15% 20% 25% 30%

Small Business

Drug Store

Gas Station

Supermarket

Fast Food

Entertainment

Fine dining

Other

Specialty Retail

Department Store

Online only

Fast Casual

Coffee

Discount/Big Box

[n=911]

44


Those ages 18 to 54 are the biggest recipients of physical gift cards from the top three merchant types, discount/big box stores, coffee shops and online only merchants.


4%

7%

6%

7%

17%

6%

9%

24%

14%

28%

16%

22%

21%

4%

5%

5%

9%

14%

12%

13%

22%

20%

27%

25%

30%

30%

2%

5%

7%

8%

10%

16%

19%

20%

23%

24%

27%

28%

30%

0% 5% 10% 15% 20% 25% 30% 35%

Small Business

Drug Store

Gas Station

Supermarket

Fine dining

Fast Food

Entertainment

Department Store

Specialty Retail

Fast Casual

Online only

Coffee

Discount/Big Box

Age 18 to 34

Age 35 to 54

Age 55 and up

45


$21.15

$29.91

$30.72

$35.02

$38.70

$39.70

$44.46

$44.97

$45.57

$45.99

$52.14

$85.42

$97.68

$- $20.00 $40.00 $60.00 $80.00 $100.00 $120.00

Fast Food

Entertainment

Drug Store

Coffee

Gas Station

Small Business

Specialty Retail

Fast Casual

Discount/Big Box

Online only

Department Store

Supermarket

Fine dining

Averages dollar value of physical gift cards received for each of the following types of stores or establishments.

[among respondents who received for the location]

Averages amount received for fine dining physical gift cards is higher than for other establishments, followed closely by supermarkets.

Bases vary by location. Range: n=33 to n=247

46


Recipients of physical gift cards ages 35 to 54 receive the highest dollar amounts for more merchant types than the youngest and oldest recipients.


$19.15

$22.64

$28.86

$30.11

$30.33

$32.74

$35.00

$47.25

$47.64

$49.00

$53.41

$56.12

$69.48

$22.80

$50.19

$29.77

$58.73

$26.69

$56.97

$37.50

$52.83

$42.70

$35.00

$51.67

$37.57

$50.00

$21.94

$24.45

$32.04

$40.82

$33.86

$40.62

$44.23

$51.75

$49.48

$32.11

$67.72

$45.86

$41.80

$- $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00

Fast Food

Coffee

Entertainment

Specialty Retail

Drug Store

Fast Casual

Small Business

Supermarket

Online only

Gas Station

Fine dining

Discount/Big Box

Department Store

Age 55 and up

Age 35 to 54

Age 18 to 34

47


Recipients receive a higher averages number of physical gift cards from online only merchant, followed closely by department stores and discount/big box stores.

How many physical gift cards have you received in the last 12 months from each establishment?

[n=911]

48

1.3

1.4

1.5

1.6

1.7

1.7

1.7

1.7

1.7

1.9

1.9

2.1

2.1

2.2

0.0 0.5 1.0 1.5 2.0 2.5

Small Business

Entertainment

Drug Store

Fine dining

Other

Fast Food

Gas Station

Coffee

Specialty Retail

Supermarket

Fast Casual

Discount/Big Box

Department Store

Online only


Recipients ages 18 to 34 receive more discount and online only physical gift cards. Again, the top merchant types are driven by the youngest ages group.


1.2

1.7

1.8

1.4

2.2

1.7

1.6

2.3

1.4

1.8

1.5

2.1

1.8

1.6

1.3

2.0

1.4

1.9

1.8

1.6

2.2

1.7

1.9

1.8

1.8

1.8

1.0

1.2

1.3

1.5

1.6

1.6

1.7

1.8

1.8

1.9

1.9

2.7

2.8

0.0 0.5 1.0 1.5 2.0 2.5 3.0

Small Business

Drug Store

Gas Station

Entertainment

Supermarket

Specialty Retail

Fine dining

Department Store

Fast Food

Fast Casual

Coffee

Online only

Discount/Big Box

Age 18 to 34

Age 35 to 54

Age 55 and up

49


E-gift Card Recipients

50


Recipients receive more online only e-gift cards than other types of merchant e-gift cards by a wide margin.

% Received E-gift Card By Retailer Type

[n=738]

2%

2%

2%

3%

5%

7%

7%

10%

12%

15%

18%

18%

22%

42%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Gas Station

Small Business

Supermarket

Drug Store

Fast Food

Other

Fine dining

Entertainment

Fast Casual

Specialty Retail

Discount/Big Box

Department Store

Coffee

Online only

51


Percentages of respondents receiving e-gift cards by merchant type and ages group.


2%

2%

1%

1%

7%

3%

3%

10%

16%

9%

21%

13%

45%

2%

3%

2%

1%

8%

4%

12%

11%

22%

18%

22%

15%

42%

3%

3%

3%

3%

7%

8%

13%

14%

14%

16%

23%

24%

40%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Supermarket

Drug Store

Small Business

Gas Station

Fine dining

Fast Food

Entertainment

Fast Casual

Department Store

Specialty Retail

Coffee

Discount/Big Box

Online only

Age 18 to 34

Age 35 to 54

Age 55 and up

52


Averages dollar value of e-gift cards received for each of the following types of stores or establishments. [among respondents who received for the location]

Averages amount received are highest for fine dining, department store and supermarket e-gift cards.

$20.50

$26.03

$27.42

$32.74

$33.36

$35.88

$36.36

$38.95

$39.55

$40.15

$44.44

$45.37

$54.68

$- $10.00 $20.00 $30.00 $40.00 $50.00 $60.00

Drug Store

Fast Food

Coffee

Fast Casual

Entertainment

Supermarket

Small Business

Discount/Big Box

Online only

Gas Station

Specialty Retail

Department Store

Fine dining

Bases vary by location. Range: n=13 to n=312

53


Recipients ages 18 to 34 higher averages amounts for the e-gift cards from the top merchant types. Again, the top merchant types are driven by the youngest ages group.

% Received e-gift Card By Retailer Type

$22.00

$30.83

$26.25

$28.90

$41.18

$31.25

$30.00

$42.84

$20.00

$38.71

$39.04

$43.33

$39.64

$29.09

$39.18

$14.50

$26.62

$56.91

$32.97

$38.80

$39.26

$45.50

$47.58

$28.37

$22.00

$56.87

$25.28

$26.50

$26.67

$27.31

$28.59

$33.44

$36.43

$36.89

$40.00

$46.97

$47.46

$48.33

$64.69

$- $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00

Fast Food

Entertainment

Drug Store

Coffee

Specialty Retail

Fast Casual

Small Business

Online only

Gas Station

Department Store

Discount/Big Box

Supermarket

Fine dining

Age 18 to 34

Age 35 to 54

Age 55 and up

54


1.4

1.6

1.7

1.7

1.9

1.9

1.9

2.1

2.2

2.3

2.4

2.5

3.0

3.6

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0

Fine dining

Drug Store

Gas Station

Fast Food

Supermarket

Small Business

Entertainment

Department Store

Coffee

Other

Specialty Retail

Fast Casual

Discount/Big Box

Online only

Recipients receive a higher averages number of e-gift cards from online only merchants than from other merchant types, followed by discount stores.

How many e-gift cards have you received in the last 12 months?

[n=738]

55


Recipients ages 18 to 34 receive more online only and fast casual restaurant e-gift cards. Again, the top merchant types are driven by the youngest ages group.


1.6

1.0

1.0

1.0

1.8

2.5

2.2

1.2

1.9

2.3

3.3

1.7

3.9

1.5

2.7

2.3

2.8

1.3

1.9

2.3

1.6

2.3

2.4

2.6

2.0

2.6

1.2

1.3

1.5

1.6

1.8

1.9

1.9

1.9

2.0

2.6

3.2

3.6

4.7

0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00

Fine dining

Supermarket

Gas Station

Small Business

Drug Store

Entertainment

Coffee

Fast Food

Department Store

Specialty Retail

Discount/Big Box

Fast Casual

Online only

Age 18 to 34

Age 35 to 54

Age 55 and up

56


72% of gift card recipients prefer receiving a gift card over a physical gift (among recipients with a preference).

When receiving a gift from someone, what type of gift do you prefer receiving?

[n=676]

40%

6%

54% 52%

4%

44%

57

28%

72%

Prefer physical gift

Prefer gift card


Millennials prefer physical gifts more than older recipients.

When receiving a gift from someone, what type of gift do you prefer receiving?

40%

6%

54% 52%

4%

44%

Prefer Physical Gift ages 18 to 34 21% ages 35 to 54 15% ages 55 and up 14% Prefer Gift Card ages 18 to 34 40% ages 35 to 54 42% ages 55 and up 43% No Preference ages 18 to 34 39% ages 35 to 54 43% ages 55 and up 43%

58


Redeemed96.00%

Did Not Redeem4.00%

Over 96% of recipients of gift cards also redeemed gift cards in 2016.

How many gift cards did you redeem this year? [among respondents who redeemed a gift card]

[n=1159]

Did you redeem any gift cards this year?

Recipients redeemed an averages of 5.2 gift cards

[n=1117]

59


Three quarters spent more than the value of their gift cards, which is an increase from 2016. Overspent amount has also increased slightly.

Please continue to think about the gift card(s) you have received that can only be used at a single merchant or retailer. In the last 12 months, when paying with your gift card, did you spend more than the value of the card?

[among respondents who redeemed a gift card]

No25%

Yes75%

[n=1117]

Averages overspend:

$27.74 [n=786]

60


Almost all recipients of gift cards redeemed them, with online only and fast food establishments redeemed most. Small businesses were redeemed least, by 74 percent of recipients

74%

75%

77%

81%

82%

87%

88%

88%

89%

91%

91%

93%

94%

94%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Small Business

Other

Fine dining

Entertainment

Specialty Retail

Department Store

Fast Casual

Gas Station

Supermarket

Drug Store

Coffee

Discount/Big Box

Fast Food

Online only

You indicated you received gift cards from the following types of merchants. Percentages of recipients who redeemed a gift card from that establishment:


61


Recipients overspent more often at higher-cost merchants or establishments where more money is generally spent at a single time (e.g., fine dining, department store, supermarket). Recipients overspent less at establishments where patrons make repeated visits and smaller purchases (e.g., coffee shops).

45%

48%

54%

57%

64%

66%

71%

75%

76%

79%

80%

82%

85%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Gas Station

Coffee

Fast Food

Entertainment

Drug Store

Online only

Small Business

Specialty Retail

Fast Casual

Discount/Big Box

Supermarket

Department Store

Fine dining

You indicated your redeemed gift cards from the following types of merchants. Percentages of recipients that overspent at each establishment:


62


Recipients overspent by higher amounts at higher-cost merchants or establishments where more money is generally spent at a single time (e.g., fine dining, department store, supermarket). Recipients overspent a lower amount at establishments where patrons make repeated visits and smaller purchases (e.g., coffee shops).

On averages, about how much more did you spend beyond the original value of the gift card(s) you redeemed in the last 12 months at the following establishments?


$11.29

$12.25

$17.49

$18.23

$22.96

$23.09

$25.59

$26.68

$28.05

$29.75

$31.05

$32.12

$32.70

$- $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00

Fast Food

Coffee

Drug Store

Fast Casual

Gas Station

Entertainment

Discount/Big Box

Small Business

Specialty Retail

Supermarket

Department Store

Fine dining

Online only

63


Yes38%

No57%

Not sure5%

Gift cards drive incremental traffic. Receipt of a gift card prompted 38% of recipients to visit a store they otherwise would not have gone to. Receipt of a gift card prompted 48% of recipients to visit a store more often.

In the past 12 months, has receiving a gift card prompted you to visit a store you otherwise

would not have gone to?

Yes48%

No48%

Not sure4%

In the past 12 months, has receiving a gift card prompted you to visit a store more often than you

would have otherwise?

[n=1159] [n=1159]

64


E-Gift Cards

65


Nearly all e-gift cards are received by email

You mentioned that you have received e-gift cards in the past 12 months. How have you received e-gift cards in the past 12 months?

[among respondents who have received an e-Gift Card]

[n=1069]

92%

9%

4%

3%

Came to my email address

Came to my mobile phoneas a text

Via a social network sitelike Facebook

Not sure

66


62%

35%24%

Most e-gift cards are used for e-commerce

When redeeming your e-gift card to make a purchase, did you …? [among respondents who have redeemed an e-Gift Card; multiple response]

[n=964]

29%

76% 12%

Redeem on-line Redeem at the store/restaurant using a printout of the e-gift card

Redeem at the store/restaurant using my phone to communicate the card number/bar code/information

67


E-gift cards are becoming a mainstream choice The next time you need to purchase a gift card, how likely will

you be to consider sending an e-gift card? [among respondents who have purchased physical or e-gift card]

Likely (4-5)29%

Neither likely or

unlikely (3)34%

Unlikely (1-2)37%

[n=1858]

68


Pros and cons of sending e-Gift cards

Why are you unlikely to consider sending an e-Gift card? [among respondents who are not likely (1-3) to consider an e-Gift card]

Why are you likely to consider sending an e-Gift card? [among respondents who are likely (4-5) to consider an e-Gift card]

[n=547] [n=1311]

3%

17%

22%

23%

27%

58%

0% 10% 20% 30% 40% 50% 60% 70%

Other

I am worried about internet safety

The redemption process may be toodifficult for the recipient

I am unsure the recipient would beable to retrieve it

I want the recipient to be able tounwrap a gift

I want to give an actual card/gift tothe recipient

1%

19%

19%

20%

22%

23%

25%

25%

25%

45%

57%

0% 10% 20% 30% 40% 50% 60%

Other

I can send a personalized text,email or video message

I would have a choice of deliverymethod

Harder to lose than traditional giftcards

It's a cool gift to give

I would receive and emailnotification when the gift is…

Environmentally friendly

Easier for the recipient to redeem

Easier to purchase than traditionalgift cards

Easier to send an e-gift card thanto mail a physical card

Immediate delivery

69


Would you…?

High interest level in receiving e-gift card, but more still prefer a physical gift card

[n=2341]

How interested would you be in receiving an e-gift card?

[n=2341]

22%

63%

15%

20% 48%

32%

53%

15%

32%

0%

10%

20%

30%

40%

50%

60%

Prefer receivingphysical gift card

Prefer receivinge-gift card

No preference

7%

10%

25%

30% 28%

0%

5%

10%

15%

20%

25%

30%

35%

Not at allinterested

Not veryinterested

somewhatinterested

veryinterested

extremelyinterested

70


Respondents ages 18 to 54 are more likely to want to receive an e-gift card and are more likely to prefer an e-gift card than respondents ages 55 and up.

88% of respondents ages 18 to 34 at least somewhat interested in receiving an e-gift card

87% of respondents ages 34 to 54 at least somewhat interested in receiving an e-gift card

72% of respondents ages 55 and up at least somewhat interested in receiving an e-gift card

Prefer receiving physical gift Prefer receiving e-gift card No preference

ages 18 to 34 45% 23% 33%

ages 35 to 54 48% 15% 37%

ages 55 and up 65% 9% 26%

71


Gift Card Self-Purchasing

72


30%35%

45%53%

Physical card E-gift card

Self-purchasing continues to grow

Percent who purchase gift cards for self [among purchasers]

2015 [n=1052 physical; n=577 E-gift]

2016 [n=1022 physical; n=589 E-gift]

73


Self purchasers are most likely to buy cards for online-only merchants, followed by coffee shops and fast casual restaurants

% Purchased for self by retailer type

[n=442]

3%

7%

7%

10%

10%

10%

14%

14%

15%

18%

20%

20%

30%

0% 5% 10% 15% 20% 25% 30% 35%

Small Business

Drug Store

Gas Station

Supermarket

Fast Food

Fine dining

Entertainment

Department Store

Specialty Retail

Discount/Big Box

Fast Casual

Coffee

Online only

74


Loyalty/rewards programs are the main reasons for self-purchasing, followed closely by receiving a discount.

What are the main reasons you purchase gift cards for yourself? [among self-purchasers]

[n=442]

15%

36% 36%

21% 24%

2%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Budgeting/moneymanagement

To receive a discount Loyalty/Rewardsprogram

Don't need to carrycash

To shop online Other

75


Reason for self-purchasing by ages group What are the main reasons you purchase gift cards for yourself?

[among self-purchasers]

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

To shop online Loyalty/Rewards Receive Discount Budgeting To not carry cash Other

Age 18 to 34

Age 35 to 54

Age 55 and up

76


Twenty-six percent of self-purchasers spend more when they purchase gift cards for themselves versus purchasing for others, while 41% spend about the same.

When you purchase for yourself, do you spend more or less than when you purchase for others? [among self-purchasers]

[n=442]

26% 24%

41%

10%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

I spend more for myself I spend more for others I spend about the same for myselfas I do for others

I'm not sure

77


More than half of self-purchasers say they purchased physical gift cards for themselves more often than e-gift cards.

In the last 12 months, what type of gift cards did you purchase for yourself more frequently? [among self-purchasers]

[n=442]

53%

35%

10%

2%

0%

10%

20%

30%

40%

50%

60%

More Physical More e-gift Equal Not sure

78


Fewer than 15% have purchased gift cards for themselves using a mobile app.

Have you purchased gift cards for yourself using a mobile app? [among self-purchasers]

[n=442]

14.71%

85.29%

Used mobile device Did not use mobile device

Of individuals who purchased gift cards for themselves using a mobile app, they used a mobile app for 40% of those gift card purchases

79


Respondents ages 18 to 34 are much more likely to have self purchased gift cards using a mobile app.

Used a mobile app to self

purchase Did not use a mobile app to self

purchase

ages 18 to 34 27% 73%

ages 35 to 54 16% 84%

ages 55 and up 4% 96%

80


Forty percent of respondents who do not purchase gift cards for themselves using mobile apps prefer to purchase physical gift cards.

Why have you not purchased gift cards for yourself using a mobile app? [among self-purchasers]

[n=337]

25% 26%

39%

11%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

I was not aware of mobileapps that I could use to

purchase gift cards for myself

I’m concerned about security of gift card apps

I prefer to purchase physicalgift cards for myself

Other (please specify)

81


Gift Card Notifications & Reloading

82


Most are at least somewhat interested in receiving gift card balance reminders

How interested would you be in receiving reminders about your gift card balance by text or email?

[n=1601]

[among receivers/self-purchasers]

17%

22%

38%

14%

8%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Not at all interested Not very interested somewhat Interested Very interested Extremely interested

83


Reloading is not a common practice among gift card users –

What are the main reasons why you added money to or re-loaded gift cards that you received

[purchased for yourself]? [among receivers/self-purchasers who have reloaded]

[n=394]

In the last 12 months how many times have you added money to any gift card you received

[purchased for yourself]?

75%

15%

7%2% 1%

Never Once ortwice

3 to 5times

6 to 10times

More than10 times

[n=1601]


41%

38%

22%

20%

12%

10%

2%

To makeadditionalpurchases

Loyalty/rewardsprogram

To receive adiscount

Don't need tocarry cash

Budgeting/moneymanagement

To be moreenvironmentally

friendly

Some otherreason

84


Reloading among self-purchasers is higher than non self-purchasers (ages has little impact)

Self Purchaser Reloading in the Past 12 Months

66%

20%

11%

2% 1% 0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

never 1 to 2 3 to 5 6 to 10 more than10

Non Self Purchaser Reloading in the Past 12 Months

79%

13%

5% 1% 1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

never 1 to 2 3 to 5 6 to 10 more than10

85


Half of all respondents would most be encourages to reload a gift card if bonus bucks were added to the card. Millennials are much more likely to be encourages by a free item than those ages 35 and above.

Which of the following incentives would most encourages you to reload your gift cards? [among receivers/self-purchasers]

[n=1601]

50%

22%

15%

13%

Bonus bucks added on to the gift card (e.g., anadditional $2 extra for a $20 reload)

Free item with reload (e.g., Starbucks latte for reloadinga Starbucks card)

Loyalty/rewards points for reload

None of the above

86


Respondents ages 18 to 34 are more interested in a free item than older respondents. Respondents ages 55 and up are more interested in bonus bucks.

33%

42%

16%

9%

20%

52%

16%

12%

15%

53%

13%

19%

0%

10%

20%

30%

40%

50%

60%

Free item Bonus bucks Loyalty/reward points None of these

Age 18 to 34

Age 35 to 54

Age 55 and up

87


No preference

In person at the store

Using a mobile app on a smart-

phone or tablet

Online using a

desktop or laptop

computer

Most would prefer to reload online on a computer. However, millennials are twice as likely to prefer a mobile app as those ages 35 and up. Very few respondents ages 55 and up have used a mobile app to reload a gift card.

[n=1601]

How would you prefer to reload your gift card?

[n=1601]


18%

43% 22%

17%


In the past 12 months, how have you prefer to reload your gift card?

None of these

In person at the store

Using a mobile app on a smart-

phone or tablet

Online using a

desktop or laptop

computer

42% 40%

23% 6%

88


Overall, respondents are most likely to prefer to reload a gift card on a computer versus other methods. Respondents ages 55 and up are more likely to prefer to reload a gift card in person or on a computer than younger respondents. Respondents ages 18 to 34 are more likely to prefer a mobile app than older respondents.

17%

39%

31%

13%

19%

44%

18% 18%

29%

47%

6%

18%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

In person Online on a computer On a mobile app No preference

Age 18 to 34

Age 35 to 54

Age 55 and up

89


More than a third are somewhat interested or more in having their gift card auto reload, but only 10% are very or extremely interested. Nearly 40% are not at all interested in auto-reload.

How interested would you be in having your gift card reload automatically (by setting it up

online or through a mobile app)?

[n=1601]

34%

22%

13%


39%

26% 25%

6% 4%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Not at all Not very Somewhat Very Extremely

90


Respondents 18 to 34 are more likely to be somewhat, very or extremely interested in auto-reloading gift cards than those those ages 35 and up.

0%

10%

20%

30%

40%

50%

60%

Not at all likely Not very likely Somewhat likely Very likely Extremely likely

Age 18 to 34

Age 35 to 54

Age 55 and up

How interested would you be in having your gift card reload automatically (by setting it up

online or through a mobile app)?

91


Those earning under $75,000 per year are more likely to be very or extremely interested in auto-reloading gift cards than those earning more. The highest earners are most likely to be not very or not at all interested in auto-reloading.

64%

24%

12%

64%

28%

8%

69%

26%

5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Not very or not at all interested Somewhat interested Very or extremely interested

Under $74,999 $75,000 to $149,000 $150,000 and up

How interested would you be in having your gift card reload automatically (by setting it up online or through a mobile app)?

92


Gift Card Multi-Packs

93


Half of respondents might be encourages to buy a gift card multi-pack if they received a discount. Those ages 55 and up are more likely to be incentivized by a discount than those under 55.

Which of the following incentives might encourages you to purchase a gift card multi-pack?

[n=1182]

28%

37%

1%

34%

50%

29%

11% 8%

2%

0%

10%

20%

30%

40%

50%

60%

Discounted price onmultipack vs single card

purchasae

Bonus gift card Free item None Other

94


Those ages 55 and up are more likely to be incentivized to purchase a multipack by a discount than those under 55. Those ages 18 to 34 are more likely to be incentivized by a free item.

Which of the following incentives might encourages you to purchase a gift card multi-pack?

[n=1182]

28%

37%

1%

34%

30%

12%

21%

1%

4%

36%

9%

22%

1%

6%

43%

5%

20%

1%

9%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Discounted price onmultipack vs single

Free item Bonus gift card Other None

Age 18 to 34

Age 35 to 54

Age 55 and up

95


Incentive Cards

96


Forty-six percent of purchasers would prefer a dollar discount as an incentive for purchasing a gift card. Millennials are less likely to want a discount and more likely to want a free item than those ages 35 and up.

[n=1182]

Some merchants offer incentives for purchasing gift cards. Which of the following incentives would you prefer?

46%

30%

10%

6% 6%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Dollar discount on gift card Bonus gift card Free item Bonus amount added tomy card (self purchasers

only)

No preference

97


Purchasers ages 55 and up are most likely to want a discount. Millennials are more likely to want a free item than those ages 35 and up.

[n=1182]

Some merchants offer incentives for purchasing gift cards. Which of the following incentives would you prefer?

39%

17%

33%

2%

7%

43%

11%

33%

6% 6%

54%

4%

26%

10%

6%

0%

10%

20%

30%

40%

50%

60%

Dollar discount on giftcard

Free item Bonus gift card Bonus amount added tomy card (Self-

purchasers only[n=442])

No preference

Age 18 to 34

Age 35 to 54

Age 55 and up

98


Sixty-four percent of respondents have received a free or discounted gift card or a discount on gas as an incentive or promotion.

Purchased a particular item and received a free/discounted gift card from the same store/restaurant.

Purchased a gift card and received a free/discounted gift card from the same store/restaurant.

Spent a minimum amount at a store/restaurant and received a free/discounted gift card.

Used your debit card or credit card to receive a free/discounted gift

Received discounts on gas when purchasing gift cards.

I have never received a free/discounted card as an incentive or promotion

99


Between 40% and 50% of respondents rated their interest as an 8 or higher for all incentive types except receiving discounts on gas.

[n=1182]

On a scale of 1 to 10, please rate your level of interest in the following types of incentive gift cards.

50% 45% 45% 43%

36% 39%

43% 44% 42% 43%

11% 11% 12% 14%

22%

0%

10%

20%

30%

40%

50%

60%

Purchased a gift cardand received a

free/discounted gift cardfrom the same

store/restaurant

Purchased a particularitem and received a

free/discounted gift cardfrom the same

store/restaurant

Spent a minimumamount at a

store/restaurant andreceived a

free/discounted gift card

Used your debit card orcredit card to receive afree/discounted gift card

Received discounts ongas when purchasing

gift cards

8 to 10

4 to 7

1 to 3

100


Respondents ages 18 to 34 are more likely to rate their interest in incentives as an 8 or higher.

Rated interest as an 8 or higher on a scale of 1 to 10.

53% 49% 49% 48%

40%

52%

47% 46% 45%

38%

44% 41% 41%

38%

29%

0%

10%

20%

30%

40%

50%

60%

Purchased a gift cardand received a

free/discounted giftcard from the same

store/restaurant

Purchased a particularitem and received afree/discounted giftcard from the same

store/restaurant

Spent a minimumamount at a

store/restaurant andreceived a

free/discounted giftcard

Used your debit cardor credit card to

receive afree/discounted gift

card

Received discounts ongas when purchasing

gift cards

Age 18 to 34

Age 35 to 54

Age 55 and up

101


Incentive cards from discount stores most common

Received incentive card at retailer [among respondents who received incentives]

[n=1068]

7%

8%

11%

12%

13%

13%

14%

16%

17%

21%

21%

22%

22%

31%

0% 5% 10% 15% 20% 25% 30% 35%

Small Business

Other

Gas Station

Fast Food

Entertainment

Drug Store

Supermarket

Specialty Retail

Fine dining

Coffee

Department Store

Online only

Fast Casual

Discount/Big Box

102


Purchasers received a higher averages number of incentives at supermarkets and gas stations.

Number of times received incentive card at each location [among respondents who received an incentive (zeroes excluded)]

*Bases vary by location. Range: n=71 to n=333

1.6

1.8

1.8

1.8

1.8

1.8

1.9

1.9

2.0

2.2

2.2

2.3

2.3

0.0 0.5 1.0 1.5 2.0 2.5

Specialty Retail

Fine dining

Fast Casual

Entertainment

Fast Food

Department Store

Small Business

Coffee

Online only

Drug Store

Discount/Big Box

Gas Station

Supermarket

103


26%

40%

34%

I was not planning on making a purchase at thatparticular store but did specifically because of the

incentive being offered

Because of the incentive being offered I ended upspending more than I originally planned to spend at that

particular store/establishment

It had no influence on my decision to purchase; I wasgoing to make a purchase there anyway

Incentives drive additional purchase and higher spending.

Which of the following best describes the influence, if any, the incentive or rebate you received had on your decision to make a purchase at that particular store, restaurant or establishment?

[among respondents who received an incentive]

[n=1068]

104


15%

62%

9%

14%

$10 off coupon

$10 gift card

$10 bonus bucks

No preference

Gift card is preferred over coupon or bonus bucks as reward by a significant margin

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?

[n=2341]

105


Store Credit and Awards

106


More than half of all respondents have received store credit in the form of a gift card.

Have you received store credits in the form of a gift card?

[n=2341]

53%

40%

7%

0%

10%

20%

30%

40%

50%

60%

Yes No I'm not sure

107


Respondents overwhelmingly prefer to receive store credit on a gift card versus a store receipt that shows the balance.

How do you prefer to receive store credit?

[n=2341]

82%

16%

3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

On a store gift card On a store receipt Other

108


Over 90% would or might be interested in receiving store refunds on a gift card if a bonus were added to the refund amount. A 10% bonus was chosen most frequently as the minimum required bonus to receive a refund on a gift card.

Would you be interested in receiving store refunds on a gift card instead of cash if the store added a percentages bonus over the refund amount?

[n=2341]

What is the minimum percentages bonus that you would accept to receive a refund on a gift card instead

of cash?

41%

50%

9%

0%

10%

20%

30%

40%

50%

60%

Yes It depends on theamount

No

15%

42%

14%

28%

1% 0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

5% 10% 15% 20% other

109


Just under 1/3 of respondents have received a gift card as an incentive or award from their employer. Nearly 2/3 of respondents are interested or extremely interested in receiving a gift card incentive or award from their employer. Only 11% are uninterested.

Have you ever received a gift card as an incentive or award from your employer?

[n=2341]

Please rate your level of interest in your employer providing that incentive or award in the form of a gift

card.

31%

66%

3%

0%

10%

20%

30%

40%

50%

60%

70%

Yes No Not sure

27%

38%

25%

6% 5%

0%

10%

20%

30%

40%

50%

60%

70%

Extremelyinterested

Interested Neither Uninterested Extremelyuninterested

110


E-Gift Cards

111


92% of respondents received e-gift cards via email, and only 5% via text. Most respondents redeem their e-gift cards online. Most who redeem e-gift cards in person use a printout of the e-gift card.

How have you received e-gift cards in the past 12 months?

[n=1091]

39%

When redeeming your e-gift card to make a purchase, did you…?

5%

92%

3% 3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

text email social not sure

41.87%

19.84%

57.73%

0.80% 0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

Redeem at thestore/restaurant

using a printout ofthe e-gift card

Redeem at thestore/restaurant

using my phone tocommunicate thecard number/barcode/information

Redeem online Other

112


Almost 30% are likely or highly likely to send an e-gift card the next time they purchase a gift card.

The next time you need to purchase a gift card, how likely will you be to consider sending an e-

gift card?

[n=1858]

81%

19% 17%

20%

34%

22%

7%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Highly unlikely unlikely neither likely highly likely

113


Nearly 60% of respondents who are unlikely to send an e-gift card would prefer to give a physical gift card or gift to the recipient.

Why are you unlikely to consider sending an e-gift card? [Among respondents who are unlikely to send an e-gift card}

[n=1311]

81%

19%

3%

17%

22%

23%

27%

58%

0% 10% 20% 30% 40% 50% 60% 70%

Other

I am worried about internet safety

The redemption process may be too difficult for the recipient

I am unsure the recipient would be able to retrieve it

I want the recipient to be able to unwrap a gift

I want to give an actual card/gift to the recipient

114


Immediate delivery and ease of sending are the top two reasons a respondents would likely send an e-gift card.

Why are you likely to consider sending an e-gift card [Among respondents who are likely to send an e-gift card}

[n=547]

81%

19%

1%

19%

19%

20%

22%

23%

25%

25%

25%

45%

57%

0% 10% 20% 30% 40% 50% 60%

Other

I can send a personalized text, email or video message

I would have a choice of delivery method

Harder to lose than traditional gift cards

It's a cool gift to give

I would receive and email notification when the gift is received

Environmentally friendly

Easier for the recipient to redeem

Easier to purchase than traditional gift cards

Easier to send an e-gift card than to mail a physical card

Immediate delivery

115


Eighty-three percent of respondents are at least somewhat interested in receiving an e-gift card.

How interested would you be in receiving an e-gift card

[n=2341]

81%

19%

116

7%

10%

25%

30% 28%

0%

5%

10%

15%

20%

25%

30%

35%

Not at all interested Not very interested somewhat interested very interested extremely interested


Respondents ages 18 to 34 are more likely to be extremely interested in receiving an e-gift card.

3%

8%

20%

32%

36%

5%

8%

25%

33%

30%

13%

15%

27%

25%

19%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Not at all interested Not very interested Somewhat interested Very interested Extremely interested

Age 18 to 34

Age 35 to 54

Age 55 and up

117


More than half of respondents would prefer to receive a physical gift card. Thirty-two percent have no preference.

[n=2341]

81%

19%

118

53%

15%

32%

0%

10%

20%

30%

40%

50%

60%

Prefer receiving physical gift card Prefer receiving e-gift card No preference


While all respondents prefer receiving physical gift cards over e-gift cards, those ages 18 to 34 are more likely to prefer e-gift cards than the other ages groups. Those ages 55 and up are much more likely to prefer a physical gift card than younger respondents.

[n=2341]

81%

19%

45%

23%

33%

48%

15%

37%

65%

9%

26%

0%

10%

20%

30%

40%

50%

60%

70%

Prefer receiving physical gift card Prefer receiving e-gift card No preference

Age 18 to 34

Age 35 to 54

Age 55 and up

119


Mobile Phone Apps

120


About 1/3 of respondents have heard of mobile gift card apps. Of those, just over 1/3 have used a mobile gift card app.

Have you ever used an app to store gift card information on your mobile phone [among those

who have heard of them]

Have you heard of apps that allow you to store gift card information on your mobile phone,

with the ability to redeem the gift card directly from your mobile phone at the

merchant/retailer?

[n=2341]

81%

19%

34%

56%

10%

Yes

No

I'm not sure

[n=794]

36%

64%

Yes

No

121


Nearly half who have used mobile gift card apps have used Apple Pay Wallet and more than 1/3 have used Google Wallet. Eight percent have used Gyft and no respondents have used GoWallet

Which mobile app(s) have you used to store gift card information on your phone?

[Among respondents who have used a store gift card app}

[n=169]

81%

19%

0%

4%

7%

8%

8%

11%

35%

48%

0% 10% 20% 30% 40% 50% 60%

GoWallet®

eGifter®

TangoCard®

Other®

Gyft®

Samsung Wallet®

Google Wallet®

Apple Pay Wallet®

122

All Rights Reserved”: “Apple Pay® is a trademark of Apple, Inc. All trademarks, service marks, and trade names referenced in this material are the property of their respective owners


More than twice as many single merchant apps users use the Starbucks® app than any other app.

Which single merchant apps have you used to store gift card information on your phone?

[Among respondents who have used a store gift card app}

[n=169]

81%

19%

10%

13%

13%

15%

21%

24%

28%

57%

0% 10% 20% 30% 40% 50% 60%

Kohls®

Best Buy®

Other

Dunkin®

Walmart®

Amazon™

Target®

Starbucks®

123

All Rights Reserved”: “Apple Pay® is a trademark of Apple, Inc. All trademarks, service marks, and trade names referenced in this material are the property of their respective owners


Half of all respondents have at least some interest in storing gift card information on a mobile phone

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

[n=2341]

26% 24%

35%

10%

5%

0%

5%

10%

15%

20%

25%

30%

35%

40%


124


5%

10%

14%

20%

21%

23%

33%

38%

0% 10% 20% 30% 40%

Other

None of these

Mobile doesn't store

Battery might give out

Risk of mistakes whenentering info into phone

Too much work

Retailer might not accept

Lack of Security

Pros and cons of storing gift card information on mobile phone What are the main reasons you might not want 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?

[n=2341] [n=2341] 1%

10%

15%

19%

22%

33%

37%

37%

0% 10% 20% 30% 40%

Other reasons

More secure

To receive automaticreminders about the card

To ensure the gift card getsused

None of the above

Less likely to lose the cards

Don't have to carry cards

More convenient

125


Those ages 35 to 54 are most likely to select convenience related reasons as a reason in favor of storing information on a mobile device.

47%

42%

38%

24%

16% 14%

7%

0%

51% 54%

49%

27%

22%

13%

28%

2%

34% 36%

33%

18% 15%

10%

44%

3%

0%

10%

20%

30%

40%

50%

60%

Moreconvenient

Don't have tocarry cards

Less likely tolose the cards

ensure theyget used

To receiveautomaticremindersabout the

card

More secure No reason Other reasons

Age 18 to 34

Age 35 to 54

Age 55 and up

126


Respondents ages 18 to 34 are more concerned than other ages groups that retailers might not accept a gift card stored on a mobile phone and are more concerned than the other ages groups that their battery might give out.

7%

11%

21%

21%

23%

14%

37%

30%

5%

11%

11%

20%

23%

21%

39%

31%

2%

7%

9%

20%

23%

27%

37%

39%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Other

None

Mobile doesn't store

Risk of mistakes when entering info into phone

Too much work

Battery might give out

Lack of Security

Retailer might not accept

Age 18 to 34

Age 35 to 54

Age 55 and up

127


22%

59%

19%

Using separate apps foreach merchant (such as

Starbucks)

Using one app to store giftcards from multiple

merchants

No preference

Most would prefer a single app to store gift cards from multiple merchants.

How would you prefer to store your gift cards on your mobile phone? [among respondents with some interest in using an app to store gift card info]

[n=1163]

128


Respondents are most interested in email notifications to get special offers and card balances.

How interested would you be in receiving electronic notifications (email, text messages, etc.) about special offers from a merchant whose gift card you had stored in an app on your mobile phone?

[n=2341]

39%

129

24%

15%

36%

16%

8%

32%

21%

29%

12%

6%

37%

23% 24%

10% 5%

0%5%

10%15%20%25%30%35%40%


Not veryinterested

Somewhatinterested

Very interested Extremelyinterested

Email notifications about special offers

Text notifications special offers

Push notifications from app special offers

20%

14%

35%

22%

9%

29%

19%

28%

17%

7%

35%

23% 25%

12%

5%

0%5%

10%15%20%25%30%35%40%


Not veryinterested

Somewhatinterested

Very interested Extremelyinterested

Email notifications about gift card balance

Text notifications special gift card balance

Push notifications from app gift card balance


Respondents ages 18 to 34 are most interested in some type of notification by email or text about balances or special offers.

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?

[n=2341]

39%

85%

15%

80%

20%

67%

33%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

At least somewhat interested in notifications Not very or not at all interested in notifications

Age 18 to 34

Age 35 to 54

Age 55 and up

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

130


52% of respondents are at least somewhat interest interested in purchasing gift cards through their internet banking website, and 43% are at least somewhat interested in purchasing gift cards through their mobile banking app.

Please rate your level of interest in the ability to purchase e-gift cards for specific merchants through

your internet banking website?

[n=2341]

39%

Please rate your level of interest in the ability to purchase e-gift cards for specific merchants through

your internet banking mobile app?

131

31%

26% 27%

12%

4%

0%

5%

10%

15%

20%

25%

30%

35%


Not veryintersted

Somewhatinterested

Veryinterested

Extremelyinterested

23%

26%

31%

15%

6%

0%

5%

10%

15%

20%

25%

30%

35%


Not veryintersted

Somewhatinterested

Veryinterested

Extremelyinterested


Sixty-seven percent of respondents ages 18 to 34 are at least somewhat interested in somewhat interested in purchasing gift cards through their internet banking website, compared to 34% of respondents ages 55 and up.

10%

23%

37%

20%

10%

22%

23%

33%

16%

6%

35%

31%

23%

9%

2%

0%

5%

10%

15%

20%

25%

30%

35%

40%


Age 18 to 34

Age 35 to 54

Age 55 and up

132


Sixty-one percent of respondents ages 18 to 34 are least somewhat interested in purchasing gift cards through their mobile banking app, compared to 23% of respondents ages 55 and up.

133

15%

24%

35%

18%

8%

28%

25%

29%

13%

4%

47%

30%

17%

5%

1%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%


Age 18 to 34

Age 35 to 54

Age 55 and up


Thank you

2016 u.s. prepaid consumer insights - constant...

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