News

Gift cards spurring more spend in UK

March 12, 2019

A First Data study reveals gift card use in the U.K. is prompting 74 percent of consumers to spend more than the card value (an average of $54) and that consumers are spending 38 percent of gifting budgets on gift card purchases.

The U.K. Prepaid Consumer Insights Study also reported 34 percent of consumers visit a store they would not have visited otherwise due to their receipt of a gift card, according to a press release.

The study polled 1,000 U.K. consumers and aggregated responses across four unique age groups.

"Our study shows a distinct opportunity for U.K. business owners to drive more sales, strengthen their brand, and bolster customer loyalty by implementing smart branded currency strategies," said John Gibbons, executive vice president, head of EMEA and co-head of Global Financial Solutions at First Data, in the release. "From employee rewards and customer service programs to social media promotions and targeted marketing campaigns, both physical and digital gift cards offer valuable incentives to both businesses and consumers."