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Millennials are boosting sales of retailer specific gift cards in the UK; self-use is one of the key drivers

Millennials are boosting sales of retailer specific gift cards in the UK; self-use is one of the key drivers

Millennials are boosting sales of retailer specific gift cards in the UK; self-use is one of the key drivers

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Retailer specific gift cards have become a popular choice in prepaid card segment in the UK. Major driving force towards its increased sales has been channelized through millennials in age group of 25 to 34 years in recent times. Many young adults are buying these gift cards for own use rather than gifting someone.

According to PayNXT360, The country's gift card market in terms of transaction value is expected to record a CAGR of 8.6% during 2016-2020 to reach US$ 13,127 million by 2020, increasing from US$ 9,431 million in 2016. Over the last five years the sector has recorded a CAGR of 12.2%, increasing from US$ 5,420 million in 2011 to reach US$ 8,589 million in 2015. E-gifting has registered highest increase in this segment with estimated growth of around 30% in 2016, as compared with previous year. A major shift has been noticed from generic gift cards to retailer specific prepaid and rechargeable gift cards. Retailer specific gift card purchasing has been increasing strongly, outperforming all other segments.

Increased usage of smartphones among young adults and rising popularity of e-commerce is fuelling the growth of this segment. Retailers now offer integrated mobile apps, loyalty programs and reward points that enhance shopping experience driving increased adoption of gift cards. These cards are becoming a primary money management tool for the millennial.

To know more and gain deeper understanding of prepaid gift card industry in United Kingdom, click here

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