The Popularity Of eGift Cards Is On The Rise

Once upon a time, plastic gift cards were the only option. Nonetheless, eGift cards have gained popularity over the years. A number of reasons make electronic gift cards an ideal choice. One of the major benefits of incentive programs is that they are fast, easy, and affordable. Additionally, eGift cards can be customized, and many consumers are using them during the holidays to give gifts.

“eGift cards continue to gain popularity among consumers.”

An analysis of gift card use by Bankrate.com highlighted the prominence of this type of card. Gift cards are primarily digitally distributed, according to the annual report released in late 2014.

The consumer embraces the idea of the egift card A major obstacle to eGift card use was consumers themselves. Digital cards were unpopular due to concerns over security and technology. As smartphones, tablets and computers become more sophisticated, "digital" is becoming the hot trend. As a result, the safety and security of an eGift card is no longer a question. This is reflected in the rising number of eGift cards in the market. According to Bankrate.com, 59 percent of the 62 different gift cards have a digital variant. In 2013, that figure was only 54 percent. Overall, the prominence of eGift cards has risen each year since 2011. Millennials are also a key reason for the growth of the digital gift card segment. Bankrate.com found that 14 percent of the millennials polled have either used or given a mobile gift card. For those between the ages of 30 and 49, that figure drops to 7 percent. It seems that younger audiences are familiar and comfortable with the idea of the egift card. Millennials are a key reason for the growth of the egift card.

Strong growth in gift card sales reflects consumers' increasing confidence in egift cards. According to CEB research, the total value of gift cards sold in 2014 topped $124 billion. Over the past year, that number has increased by 5 percent. During 2013 and 2014, egift card sales reached $5 billion and $6 billion, respectively. According to CEB, as eGifting becomes less of a niche market, it will grow to approximately $17 billion in sales by 2017. In spite of innovative products like eGift cards, CEB research shows that gift card sales are slowing down. Brian Riley, senior research director at CEB TowerGroup, said that gift cards have moved beyond novelty. As the e-gifting industry matures, growth will slow, but innovation will ultimately help it flourish. You can expect a new set of winners and losers as the battle for consumer mobile wallets heats up." What does that mean for you? eGift cards are expected to increase in popularity. The benefits of digital rewards and incentives include affordability, flexibility, and security. Gift cards can now be shared online more easily than ever before.

Creating unlimited eGift Cards with Sirkle and sharing them on Social Media is similar to doing that with larger companies. Those eGifts can be purchased by your customers and used only at your business. Do you want to learn more? Visit our website at https://www.sirkle.com.