Millennials and women are fueling a surge in sales of retailer-specific gift cards, but it seems that they are purchasing more of these gift cards for themselves than to give away to others, as more and more retailers and brands entice consumers with loyalty rewards when they purchase these types of gift cards through apps.
Mercator Advisory Group surveyed 3,009 U.S. adults in June of this year to examine the shift in gift card consumers to prepaid and rechargeable cards issued directly from retailers.
The study found that these types of consumers are steadily growing. Of those surveyed, 63 percent bought these types of cards this year, compared to 61 percent in 2015 and 56 percent in 2014.
Retailer-specific cards are now the most popular types of gift cards, too, with 45 percent of U.S. adults having purchased some form of them this year, up from 41 percent in 2015.
Millennials, specifically those between the ages of 25 and 34, seem to be fueling the rise in the purchase of retailer-specific gift cards, as three out of every five of the young adults surveyed reported buying at least one in the past year — an increase from 2015’s survey, as only about half of millennials reported buying the cards then.
Interestingly enough, with the rise of smartphones, eCommerce and the increasing popularity of retailer-specific gift cards, these types of cards are beginning to function more as a form of currency themselves than as a gift-giving method.
“As retailers introduce new mobile apps, often with mobile payment options that include their retailer prepaid cards, young adults begin to buy retailers cards for their own use, so the cards are becoming a primary payment tool and not just used as gifts,” according to the study.
Women also seem more likely to purchase retailer-specific gift cards than their male counterparts, with 49 percent reporting they purchased at least one this year, compared to only about 40 percent of men. Still, Mercator Advisory Group did note that the number of men purchasing retailer-specific gift cards has “grown steadily” since the firm began tracking the number in 2013.
Also spurring the rise of retailer-specific gift cards, many of the retailer apps’ digital loyalty programs offer consumers free money, in-store points or deals for re-upping or refilling the gift cards, which many millennials seem to be using as a way to stretch their dollars in stores, while push notifications are easily used to remind the consumer that their card is empty or that they might be missing out on a hot, new deal.
“Retailers are introducing more mobile-based apps and offers when using their loyalty and prepaid programs, which may be fueling this growth in retailer gift card purchases,” according to Karen Augustine, manager of Primary Data at Mercator Advisory Group and the author of the report. “Young adults continue to lead this mobile revolution and growing use of prepaid cards as a money management tool.”
Gift cards, thanks in large part to retailer-specific incentives and loyalty rewards programs designed to entice customers to spend more of their dollars on that specific brand or retailer, appear to be enticing consumers to do just that in greater numbers than ever before.
And the gift card seems to be shifting from a token given to friends or families around the holidays or out of appreciation into a practical form of currency for many of today’s savvier young shoppers.
Source: PYMNTS.com - September 8, 2016
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Less than one second after making their triumphant return to the marketplace, all 21,000 of Olive Garden’s Never-Ending Pasta Passes were snapped up by thousands of people who are apparently unfamiliar with the phrase “too much of a good thing.” To put it in perspective, that’s enough Alfredo-slurping, breadstick-wielding Pasta Pass holders to fill Madison Square Garden.
Pasta Pass holders will be able to gorge themselves on seven weeks’ worth of unlimited pasta, soup or salad, breadsticks, and soda, as often as they want — or are physically capable of? — between October 3 through November 20.
Last year, Olive Garden offered 2,000 passes, all of which were claimed in less than a minute. This year, the chain opted to sell 21,000 in honor of its 21st anniversary — and seemingly could have sold many more.
Sales went live on Thursday at 2 p.m. EST. According to a spokesperson, the first 21,000 people to click “purchase” were able to claim their Pasta Passes: “Everyone else received the sold out message, which for them occurred in less than one second/immediately.”
There are still a handful of passes left — though those who want one will have to duke it out on eBay, where 21 are currently being auctioned to benefit Feeding America. Fair warning: Prices are already well past the original $100, with some bidding as high as $810.
Now the question remains: Will any of this year’s Pasta Pass holders be able to eat more chicken Alfredo than OG superfan Alan Martin, who in 2014 consumed some $1,840 worth of Olive Garden pasta in just seven weeks?
Source: Eater.com, by Virginia Chamlee - September 16, 2016
The success of the Olive Garden Never-Ending Pasta Pass wouldn't be possible without the collaboration of several vendors who work regularly with Darden Brands. Travel Tags, Inc. had the pleasure of partnering with Darden Brands (Olive Garden) for another year on the card production and fulfillment of the Never-Ending Pasta Pass. We're honored to be part of an impressive group of vendors who can implement such a successful marketing campaign as the Never-Ending Pasta Pass, year after year!
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KATIE SINSKY | MARKETING DEPT.
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The United States may have taken its time to introduce “chip and PIN” credit and debit cards but the technology has had a positive effect for banks, retailers and consumers.
With the first anniversary of the mandatory switch to EMV-compliant transactions approaching, data published by MasterCard said that nine out of 10 people now use embedded microchip cards on a regular basis. According to a recent survey of 1,000 American consumers conducted by Braun Research on behalf of MasterCard, there has been a 38% year-on-year increase in the use of chip-enhanced payment cards in the last 12 months. Safety and security cited as significant factors for adoption.
Around 88% of all MasterCard-issued consumer credit cards in the United States now have the embedded chip—a 105% increase since the liability shift came into effect on October 1, 2015. The number of merchants accepting EMV cards has steadily risen, with MasterCard’s network currently registering 2 million chip-active merchants or 33% of all U.S. retailers.
Out of these two million active merchants, 1.3 million are regional or local merchant locations—an increase of 159%, MasterCard said.
“As more U.S. cardholders use their MasterCard chip cards, they are learning the benefits of increased safety and security,” said MasterCard’s senior vice president of product delivery Chiro Aikat, in a press release. “It’s no small undertaking to change the way people pay for things. The only reason to start this big a task is to make people’s lives better. Chips have the potential to do just that.”
The U.S. may have arrived late at the EMV party, but there has been a significant drop in the level of fraud associated with counterfeit cards. At least with physical cards (digital EMV is another story).
Installed terminals at the point of sale talk to the embedded chip in a card that creates a unique code for all purchases. Before the liability switch on October 1, 2015, banks were liable for fraudulent transactions. After October 1 last year, liability switched from banks to merchants that had not yet adopted EMV payments.
See also: How MasterCard Built Digital Enablement And Changed Mobile Payments
In less than a year, the level of fraud has decreased by 54% at U.S. retailers that are EMV-compliant, said MasterCard. Citing year-on-year trends from April 2015 to April 2016, MasterCard’s data said that the costs of counterfeit fraud had increased by 77% among large American retailers that have not made the switch to EMV.
“We need chip cards in wallets and chip terminals at checkout to continue to drive card fraud out of the U.S. This country is one of the most complex markets in the world so we know things won’t change overnight,” said MasterCard’s president of North America Craig Vosburg. “However, we’re encouraged by the significant progress over the last 11 months. With every additional chip transaction we move closer and closer to our collective goal—moving fraud out of the system.”
Source: arc from Applause -- Part of the "The Crossroads of Ecommerce" Series, written by David Bolton
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KATY LASEE | MARKETING DEPT.
651 554 8533
KRLasee@traveltags.com
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