As digital commerce continues to grow, the use of gift cards has evolved, with online redemption becoming increasingly popular across various generations. While gift cards remain a convenient option for gifting, how different age groups redeem them is shifting. From tech-savvy Gen Z to digitally adept Millennials, and even Baby Boomers embracing online platforms, each generation has its own distinct approach to utilizing gift cards.
In particular, Gen Z and Millennials, who are highly accustomed to digital ecosystems, prefer the convenience of redeeming gift cards through online platforms and mobile apps, aligning with their broader shopping habits. Their comfort with technology drives demand for seamless, digital-first gift card experiences, often tied to e-commerce and social media integrations. Meanwhile, Baby Boomers, though traditionally associated with in-store gift card usage, are increasingly adapting to digital redemption options as they become more user-friendly and accessible. This shift not only reflects generational preferences but also points to a broader trend of digitization within the payments industry, where gift card providers are enhancing their offerings to meet the needs of a diverse consumer base.
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Data for today’s episode is provided by Javelin Strategy & Research’s Report: Javelin Prepaid Consumer Sentiment: A Generational View
Gift Card Redemption Online by Generation in the Past 12 Months
- 76% of Gen Y / Millennial’s redeemed gift cards online.
- 68% of Gen Xer’s redeemed gift cards online.
- 67% of Gen Zer’s redeemed gift cards online.
- 61% of Baby Boomer’s redeemed gift cards online.
Source: Javelin Strategy & Research
About Report
Generational approaches to prepaid card usage highlight the potential for tailoring programs to meet the specific needs of different demographic groups. While the behavior of one generation may not always predict the habits of the next, valuable insights can still be gained by examining generational trends. These insights can help inform strategies that encourage new and innovative uses of prepaid cards.
The generational perspective also sheds light on the ongoing digital divide. As prepaid card programs expand into omnichannel and digital platforms, younger, tech-savvy generations like Millennials and Gen Z show distinct preferences in how they receive and use these cards. Meanwhile, Baby Boomers tend to maintain more traditional behaviors, with Generation X often positioned between the two, balancing both digital adoption and conventional redemption methods.
