Business Research & Analysis
Digital gift cards have been posting strong growth in recent years, a trend which is expected to continue over the forecast period. This is primarily driven by shift in terms of consumer buying behavior. Digital gifting segment accounted for USD 62 billion sales during last four quarters ending Q3 2016,indicating y-o-y growth of 26%. Consumers have been steadily moving towards digital gift cards from plastic / paper options. Retailers have also acknowledged this trend as sales through digital gift cards has significantly risen in past three years. Around 65% consumers in the market now purchase digital gift cards without any promotions, which is 33% higher than last year figures.
Global gift cards market size are fast gaining prominence across both developed and developing markets as internet and mobile penetration rates increase across the world. The category is being driven largely by millennials as it fits their online and mobile-centric lifestyle. This consumer group is showing preference for digital gift cards as it helps them in accessing online content such as digital music, e-books, and games securely and helps in conducting transactions faster and in a more convenient manner than plastic gift cards. As digital gift cards are a low cost model, the market is seeing entry of many new start-ups and non-financial players, who are eager to be part of this high growth potential market. Fore more click here
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