With the holiday glut fast approaching, you may want to think about avoiding plastic — gift cards that is.
Just as giving actual bricks-and-mortar gifts gave way to gift cards, those cards are now giving way to their virtual versions.
The early fans of electronic gift cards? Millennials. In a new survey from , 14 percent of 18- to 29-year-olds say they’ve given or received a mobile gift card, double the share of 30- to 49-year-olds and more than the 6 percent of 50- to 64-year-olds who had done so.
Respondents weren’t asked why they preferred one type of gift card over another, but millennials may have offered a hint. They were about twice as likely as other consumers to say they’ve lost a gift card before they could spend down the balance.
Electronic gift cards, which can be accessed through e-mail and via smartphone apps, may appeal to people worried about losing the cash, says Jeanine Skowronski, credit card analyst for . “[Electronic] gift cards are definitely harder to lose,” she says. “It can exist in your e-mail, as opposed to a piece of plastic that may or may not make it into your wallet.”
Aside from being easier to track, virtual gift cards, which can be bought with a few clicks of the mouse, are more convenient than plastic gift cards, she says. (Not to mention, they’re a quick fix for procrastinators in search of a last-minute gift. No wrapping needed!)
Electronic gift cards are growing more common. This year, 59 percent of gift cards are available electronically, up from 41 percent in 2010, according to , which also analyzed the terms and conditions for 62 widely held gift cards.
When it comes to where gift cards can be spent, the most popular types of cards — general- purpose cards — are also the most expensive. All seven of the general gift cards studied charged a purchase fee between $3.95 and $6.95, compared to 7 percent of store-specific gift cards.
One way they’re like any other gift: You can hunt for deals. Some people may save by looking for discounted gift cards on sites such as or Gift Card Granny.
