• by Laurie Sullivan , Staff Writer @lauriesullivan, December 14, 2015

Few retailers other than Amazon, Macy's and Target promote holiday gifts cards in paid-search ads, sitelinks organic listings, or used as an incentive to promote a sale in a paid advertisement. Yet 88% of consumers are likely to purchase at least one gift card this holiday season, and 88% redeem a gift card within three months, according to a recent study.

InComm's research highlights consumer shopping behavior and purchase habits for purchasing digital and physical gift cards on Web sites from desktops and mobile devices this holiday season. Of the consumers surveyed, 89% have purchased two or more gift cards online. More than 500 respondents were surveyed online in October 2015.

Some 66% of respondents between the ages of 26 to 35 prefer to have a digital gift card scanned from their phone rather than an email printout. About 96% of respondents agree they are interested in storing digital gift cards on their phone. Some 71% of total respondents (and 81% of those ages 18 to 25) are interested in storing and using gift cards on their phones.

The reports highlights security as one reason for purchasing gift cards to buy online rather than use a credit card. In fact, 96% cite convenience and ease of use, and 63% cite security.

Gift cards are in demand this year. Nearly 90% of respondents between the ages of 18 and 25 agree they are more interested in purchasing digital gift cards now than they were two to three years ago.

Overall, 94% of respondents intend to purchase at least one gift card from a desktop Web site or mobile Web site or app this holiday season. There's the breakdown. Some 43% of shoppers think they will buy two to three. About 27% will likely buy between four and five; 24%, more than five, and a mere 6% are likely to buy one.

Nearly 41% of those who have purchased gift cards from desktop or mobile Web sites or apps typically purchase between five and 10 cards annually.

A digital gift card was defined as a card that is emailed to the recipient, and a physical gift card was defined as a traditional gift card that is shipped to the recipient.

Of those who have bought a gift card from an online Web site or a mobile Web site and app, 29% have purchased a physical gift card, while 32% have purchased a digital gift card and 39% have purchased both.

When deciding whether to purchase a digital gift card or a physical gift card, more than one-third admit it depends on for whom they will buy the gift card. Some 61% prefer to have the option to purchase either a physical gift card or a digital gift card when purchasing gift cards from desktop or mobile Web sites/apps.

Some 56% of respondents agree that if they receive a digital gift card, they prefer to have the card scanned from their phone rather than carry an email printout. 

These numbers are higher among younger respondents. Sixty-four percent of those ages 18 to 25 agree. Of those ages 26 to 35, 66% agree; ages 36 to 45, 65% agree; ages 46 to 55, 52% agree; ages 56-65, 33% agree; and of those ages 65 and older, 15% agree.

Interestingly, 71% of respondents are interested in storing and using gift cards on their phones. Interest is higher among younger respondents and those more than 35 years of age. In fact, 81% of those ages 18 to 25 agree; 82%, ages 26 to 35; 82%, ages 36 to 45; 57% of those 46 to 55; 47% of those ages 56 to 65 agree; and 24% of those more than 65 years of age.