Zeek Mobile LTD Finds UK Gift Cards Have Unusual Target

June 29, 2018         By: Steven Anderson

There are several ways to look at gift cards. You can call them a lazy present, the ultimate in value, or just a handy way to mark an occasion with a bit of generosity. However, a new study Zeek Mobile LTD tipped us off about an unlikely new use for gift cards. Turns out, in the UK, gift card customers are increasingly giving to themselves.

Nearly half of shoppers in the Zeek study—47 percent—are buying gift cards specifically to spend them themselves. That may sound ludicrous—why buy a gift card just to cover purchases at a store where you were going to buy things anyway?—but there are reasons. For 37 percent, convenience was a factor, and for almost as many—36 percent—it was to receive a discount. Shoppers on a budget, meanwhile—about 24 percent—cited the ability to stick to a budget as being the main reason to gift-card shop.

Millennials are actually most likely to buy gift cards for themselves, and 15 percent say they do so often. Men were more likely than women to buy gift cards for discounts or convenience, while women favored gift cards as a budgeting tool.

The gift card trend is proving helpful for both online and offline retail. Those who do use them in store are a windfall, as the average order value is 17 percent higher than it is online.

For the most part, these are valid reasons; convenience doesn’t seem like much of a factor—a gift card is more convenient than paying cash?—but the budgeting is a good plan. Can’t spend more than the card is worth, after all. Discounts are also a really compelling reason; who wouldn’t take the chance to buy $55 worth of goods for $50, when all you have to do is buy a gift card?

It might be a good opportunity for firms wanting to introduce more mobile payments options to offer discounts through the platform. Since convenience is so prized, adding discounts to the package could really draw users in. Top it off with a user-selectable maximum spend for budgeting and you’ve reached a big crowd. Only time will tell how well this works, but based on what we know, it may be just the boost mobile payments need.