Digital cards popularity is increasing in the UK

Print

Email

The UK shoppers are shifting towards digital cards as they are more convenient. The growing demand from the millennials and Gen Z population for online gifting options such as e-gift cards is changing the entire dynamics of the gifting industry. Moreover, this trend has accelerated due to the pandemic.  The retail B2C sales of gift cards shifted from in-store to online, as customers avoided going to stores due to fear of spread of coronavirus. The impact of this pandemic is expected to last longer and will also change the way people live. Hence, dependency on digital platforms will create significant growth opportunities for digital gift cards, going forward.

People are shifting from the traditional gifting options such as greeting cards or edibles to digital gift cards. To capture this trend, companies have been offering digital cards in the UK to gain new customers, generate additional revenue, and promote loyalty among existing customers.  Mastercard in collaboration with Appreciate Group and CleverCards, provides digital gift cards directly to recipient’s mobile wallets. The digital gift card can be sent via email, messaging app or SMS and can be used at 6,400 retail stores including Topshop, John Lewis, and TK Maxx.

Also, in May 2020, Blackhawk Network launched digital gift card which can be sent to the receiver’s phone and can be redeemed at stores in the UK and Ireland. The gift card can be used to make contactless payment at these stores.

Moreover, in the corporate gifting sector, digital gift cards are more popular as compared to traditional gift items in the employee incentives segment. Besides gifting to employees on different occasions, most of the corporates also run rewards and recognition programs, and as a suitable gifting option companies are giving preference to e-gift cards. Customizability, easy availability, and offering wider choices for employees are the prime factors giving an edge to the digital gift cards over traditional gift options.

Gift cards under incentives and rewards category to witness fastest growth in the coming years

Gift cards as incentives and rewards are expected to record fastest growth in the coming years as corporates continue to reward employee with physical or digital gift cards. The growth in B2B gift cards will be driven by consumer spending on work programmes, as well as increase in gift that employees receive for free.

Also, given the pandemic, corporates are helping employees with Employee Assistance Programmes (EAPs) which are being used by staff to buy digital gift cards for friends or family or to support local businesses in this unprecedented time. Digital cards are being used by companies for festive gifting. Also, since with the onset of the pandemic, employees have been working from home and there has been a rise in ordering food from restaurants. To cater to this growing trend, Sodexo launched Premium Pass Celebrations pass in October 2020 to help organizations recognize and reward employees with this gift meal in this challenging time.

The Sodexo Premium Pass Celebrations – Dining which can be offered physically as well as virtually has one-year validity and is accepted at Sodexo's network of cafes, restaurants, online food delivery portals, food franchises, sweet shops, and bakeries. With this pass, Sodexo aims to support its partner network to bounce back in the post COVID-19 era.