Gift Card Industry Research - Understand What Consumers are Buying and Why

There is no denying the value of gift cards for a wide range of demographics and gifting occasions.

A recent study by GPCA (Gift and Prepaid Card Association Australia) brings new industry findings to light. How do you stack up to other gift card consumers?

Did you know…

49% of Australians aged over 18 years having purchased a gift card in the last 12 months.

For almost half of Australians, gift cards are a common gift option that minimises hassle and second guessing as it shifts the power of choice to the receiver.

The gift card market is estimated to be worth $6 billion per year.

The industry remains prominent, going from strength to strength as people see the benefits of gift cards compared to other gifting options, resulting in a thriving market.

On average, consumers are purchasing gift cards every 2 months, with $50 being the most popular choice.

Gift cards are seen as a versatile gift, allowing people to cater to the recipient with a value suited to their budget. Card.Gift offers values of up to $500, so recipients will not come away disappointed.

For most consumers, gift cards are a considered purchase with 57% knowing what cards they are looking for and seeking them out directly.

Consumers typically know what their giftee wants. From payment methods, to shopping habits, to likes and dislikes. Others prefer to see what else is out there!

36% of consumers purchased cards that could only be used at single retailers, while 34% are buying cards that can be used at multiple retailers.

Gift cards can be tailored by retailer or serve as the ideal gift of choice, but no matter which route you take, it’s safe to say that giftee will be over the moon.

Physical vs Digital:

The case for either format relies on what the customer is looking for when making a purchasing decision.

Physical cards are great because they can be wrapped or presented as a tangible gift and can be used at physical store locations. However, the risk is that they can be lost or stolen. They can serve as a reminded to use the card since it can be stored in a wallet or purse, but they may not be as convenient to use for online purchases. Digital cards can conveniently be delivered instantly, and they are less likely to be lost or stolen. The flip side is that they may not be as exciting to receive as a physical card, and some users may not feel comfortable providing their personal contact details to activate the card.

Trends

Digital Gift Cards - The Covid-19 pandemic made consumers more aware of digital payment platforms. VISA and Mastercard are most commonly added to consumers’ digital wallets marking a digital shift in the industry. Plastic waste reduction is also a contributing factor.

Personalisation - customers want to make it their own, whether its adding their own photo or a personal message. Adding personal touch is in style and becoming more popular. Market Growth - Australians are realising the potential and convenience of gift cards. 85% of consumers are either buying the same or more gift cards than the year prior. Multi-store Gift Cards - gift cards that can be used at a number of retailers are gaining popularity. Consumers are realising there is nothing like giving the gift of choice. The upward trajectory of the gift card market is a sign that gift cards are easier to use and more versatile than ever. Card.Gift opens the door with a variety of digital or physical gift cards for a variety of brands, as well as multi-choice options for even the pickiest of giftees! What are you waiting for? Explore our options here.