Our 2018 Consumer Insights Study takes a look at trends in branded currency and how you might leverage them as part of your gift card strategy.

Consumers prefer physical cards because they are more personal but will often use eGift/digital cards because

they can be sent instantly and purchasing is more convenient.

One in three spend more on a gift card than on a traditional gift

and drive new customers to your store.

18–23 24–37 38–53 54+

1,032R E S P O N D E N T S

100%1 8 + Y E A R S O L D

2018O C T O B E R

G E N E R AT I O N Z M I L L E N N I A L S G E N E R AT I O N X / Y B O O M E R S

WHAT?The future of the gift card market in the U.K. looks positiveThose surveyed still prefer to give and receive physical gift cards over eGift/digital cards.

WHY?What was the occasion

Special occasions and festive events drive gift card purchasing in the U.K.

WHERE?Gift cards have an impact on consumer purchasing behaviour

HOW MUCH?What’s the value

Reasons to Purchase Cards for Others – 2018 (Multiple Responses)

69%81%

42%47%

12%15%

15%15%

9%

1%0%

11%

Physical eGift

As a present for anoccasion or event

As a present for afestive event

As a method ofpaying someone

To give moneyin a way that limits

how it is spent

To earn loyalty/reward points

Other reasons

• A key point of interest here is – one in three respondents indicate high interest in purchasing gift cards from either a bank website or banking mobile app

• Most consumers who buy a gift card at a gift card mall say they have a particular store or brand in mind prior to making their selection

• Typically the gift card malls where these purchases are made are located in a department store or food supermarket

30%Department store

Food supermarket or grocery store

Online only merchants

Entertainment

Discount store/big box

Specialty retail store

Chemist/health store

Fast-casual restaurant

Fast food restaurant

Coffee shop

Petrol station or convenience store

Fine dining restaurant

Other stores or establishments

26%

17%

11%

10%

9%

7%

6%

5%

5%

5%

4%

4%

Are you gift card ready?We can help you get there

giftsolutionsemea@FirstData.com FirstData.com

SCROLL DOWN TOEXPLORE THE REPORT

Intro What? Why? Where? How Often? How Much?

44%

Prompted visit to a store more often –

2018 (%yes)

34%

Prompted visit to a store would not have visited –

2018 (%yes)

Gift Card Mall Location – 2018 (Multiple Responses)

Average spend on gift cards

Gifts Cards

£203

U.K. consumer spend in the past 12 months on all gifting (i.e., Cards, Presents, Cash)

All Gifts

£531

Two in five of those who bought themselves a gift

card or received a gift card have reloaded them,

primarily to enable additional purchases.

HOW OFTEN?Time to Reload

46%Make additional purchases

27%Loyalty/rewards programme

25%Receive a discount

21%Budgeting

15%Be environmentally friendly

14%Don’t need to carry cash

2%Other

What’s the value?Gift cards provide huge value to consumers, so make sure you

understand the value they can bring to your business.

Generation Z and MillennialsGeneration Z is the largest segment buying physical gift cards and Millennials are the largest buying eGift/digital cards. Having a strategy to reach them when, how, and where they want is key.

Your Branded-Currency StrategyDo you have one? Is it up-to-date? From increasing revenue to growing margins to capturing data, make sure that you’re leveraging current market opportunities.

Preference to Purchase Type of Card – 2018(Base=Purchasers)

Physical eGift

62%

18%

Preference to ReceiveType of Card – 2018(Base=Receivers)

44%27%

Physical eGift

Reasons to Reload – 2018�(Multiple Responses; Base=Reloaded)

© 2019 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. 509405 2019-01

T R E A T Y O U R S E L F

G I F T C A R D

Your Branded Currency2018 Prepaid Consumer Insight Study

£41Average amount spent over

the value of the gift card

Avg. Spending/Card – 2018(Base=Purchasers)

Physical eGift

£99

£74

74%Of U.K. gift card receivers spent over the value of the card at the retailer

Avg. Value/Card – 2018 (Base=Receivers)

Physical eGift

£61 £58