The Evolution of Branded Currency

2017 Prepaid Consumer Insights Study

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2,318

Respondents

100%

Adults 18+ years old

2017

August

We track the trends so you can make informed decisions. Business is booming in new and unexpected ways. Self-purchasing is up, technology is advancing, behavior is changing, and the front-runner is clear:
Socializers, those age 18-34, are changing the game.

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Dictionary

Branded Currency: noun | 'bran-did kur-uh n-see' |

In a world that is increasingly driven by experience rather than purchase, more consumers are turning to gift cards, which have evolved over the past decade. The use cases for gift cards have exploded and the popularity of gift cards has grown as a result. Enter: "branded currency," formerly known as "the gift card."

Our 2017 Consumer Insights report details five trends in branded currency and how you can use them to your advantage in the coming year with these three demographics in mind:

Socializers

Age 18-34

MTV® Generation

Age 35-54

Maturists

Age 55+

Gift card image Coffee image
Self-Purchasing

#reallytreatyourself

If you're looking to target self-purchasers, start with Socializers. Self-purchasers across all ages are most driven by discounts and rewards.

What percentage of each demographic are self-purchasers?

Socializers icon
62%
Socializers
MTV Generation icon
60%
MTV Generation
Maturists icon
54%
Maturists

Gift cards aren't just about giving gifts anymore. Entice your self-purchasers with rewards and discounts and make it easy for them to use your branded currency.

Reasons for self-purchase

37%
to receive a discount
35%
Loyalty / rewards program
27%
to shop online
Shopping bag Sunglasses Shoes
Overspend

#somethingspecial

Branded currency is a gateway to higher spending. Don't take our word for it — check out the numbers.

Blue card

Purchasing year over year

$$
$28

2016

$38

2017

Average overspend amount

Up $10 from 2016

Laptop Arrows Gift card
New Ways to Use

#newwaystouse

Want to reward your employees or streamline store credits and rebates? How about a gift card.

81%

are interested in receiving a gift card as store credit

71%

are interested in receiving a rebate via gift card at time of purchase

69%

are interested in receiving employee rewards via gift card

Transit card

Announcing a new contender in out-of-the-box gift card avenues:
Prepaid Transit Cards.

A Prepaid Transit Card is a public transit agency ticket that comes in the form of a paper or plastic card. It is used to deduct the fare rate as a consumer passes through a turn style or boards a bus or a train.

32%

have purchased a prepaid transit card

45%

of Socializers are the most likely to purchase a prepaid transit card

1/week

Those who buy prepaid transit cards do so once a week.

Influence

#bigbehavior

Gift cards change behavior. They drive new customers to new stores, make them come back more often, and encourage them to significantly overspend the value of the card.

S
A
L
E
44%

will visit a store they would not normally have visited

53%

will visit a store more often

97%

have redeemed their gift cards

$38

Average overspend amount

75%

have overspent the value of the card

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Try Something New

With a gift card, Socializers are the most likely to visit a store they would not normally have visited.

Socializers icon
55%
Socializers
MTV Generation icon
43%
MTV Generation
Maturists icon
33%
Maturists
Gift Card image

Come Again...

With a gift card, Socializers are also the most likely to visit a store more often.

Socializers icon
64%
Socializers
MTV Generation icon
54%
MTV Generation
Maturists icon
41%
Maturists
Socializers

#jackpot

Socializers are the most interested, the most engaged, and the most versatile.
If you want to push what your branded currency can do, test it on Socializers.

Gift cards icon
2.5x

more cards redeemed than other age groups

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9%

more likely to reload gift cards than other age groups

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13%

more likely to pay to personalize a gift card

Store icon
11%

more likely to visit a store they would not normally have visited because of a gift card

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12%

more on gift cards than physical gifts compared to other age groups

Social icon
12%

more likely than other age groups to purchase gift cards on social media

It's time to shake things up

People's perspectives, motivations, and habits are changing.
Is your gift card keeping up?

Gift card Phone image
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Branded currency is on the rise

As the 2017 Consumer Insight Study demonstrates, the world of branded currency is evolving beyond mere gift-giving. It provides consumers with a secure financial transaction option, allows great physical and digital flexibility, garners brand awareness and loyalty, and provides great data tracking.

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Innovative strategy

Gift card providers should consider new ways to use their branded currency, from mobile apps to exchange sites to alternative re-up outlets (like fast food breakfast locations).

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Socializers for the win

They should also focus their innovation on Socializers to test new methods. And while they should be embracing digital gift cards, they should also remember that physical gift cards are far from dead.

Ready to evolve your gift card strategy?

Data cited in this publication is the result of the 2017 Consumer Insights research study conducted by First Data.