The year 2024 is set to be the most “digital” Christmas in history, with more gifts being given electronically than ever before. From digital gift cards to online experiences, UK shoppers are embracing the simplicity and flexibility of digital gifting, making this Christmas a memorable one for tech-savvy gift givers.

Gift cards, a popular choice for 33 percent of UK adults over the holidays, are now more likely to be available digitally than physically. In the first half of this year, sales of digital gift cards exceeded those of physical cards for the first time, with digital cards now accounting for 52 percent of the market.

Research* from the Gift Card and Voucher Association (GCVA) shows that this trend goes beyond just gift cards. Around 30 percent of people now send digital gifts to at least some of their friends and relatives, and for younger buyers under 34, the figure rises to 41 percent. And the recipients are thrilled: Half of people (50 percent) are happy about a digital gift, 22 percent say they are very happy about it. Only 9 percent say they would be “very dissatisfied” with a digital gift.

The appeal of digital gifts is clear: 68 percent of people who prefer them cite the convenience and ease of use. The flexibility of choice (59 percent) and the environmental friendliness of digital gifts (22 percent) are also important reasons for their growing popularity. And with 30 percent of people mentioning the ability to purchase and gift digital gifts instantly, digital gifts are proving to be the perfect solution for last-minute shoppers.

The most popular digital gifts include online shopping gift cards (70 percent of UK adults love them) and digital event tickets (55 percent). Digital subscriptions or games are particularly popular among 16 to 24 year olds, with 20 percent citing them as their preferred digital gift.

However, even as digital gifting becomes the norm, many givers and recipients still desire the special moment of gift-giving, meaning physical gift cards remain very popular during the holiday season or special occasions, and new traditions are emerging around these gifts to give something special special and personal. Of the 30 per cent of UK adults who send digital gifts, 43 per cent create personalized cards, often with photos or custom messages. Over a quarter (26 percent) package QR codes or certificates, while some even go so far as to create videos to “unveil” their gifts. To make it easier for consumers to spend their gift cards, most gift cards can be redeemed in-store or online, whether gifted physically or digitally. Gift cards are therefore an excellent choice.

Hannah Shimko, Executive Director of the GCVA, comments: “We have seen the popularity of digital gifts increase dramatically in recent years, driven by both technology and the evolution of our gift-giving habits and rituals. Since we shop online, it makes sense that many of us now also choose to give gifts online. At the same time, many recipients tell us that they are more than satisfied with receiving a digital gift.

But it is also clear that we still want a personal gift moment. Gift givers – especially at Christmas – get very creative when it comes to bringing their gift to life and creating drama on Christmas Day = be it a physical or digital gift or a gift card. We are seeing strong demand for physical gift cards that represent an actual gift – such as a shopping trip, a day trip or another fun experience – and that can be easily slipped into a card or gifted with other items.”

Although digital gifts are quickly becoming the norm, there is still a generation gap. 83 percent of those over 65 have never purchased a digital gift, but the older generation is still open to it. In fact, 70 percent of people over 65 say they would be happy to receive a digital gift, and only 10 percent insist on only receiving physical gifts.

*Study conducted on a nationally representative sample of 2,000 adults in the UK.

Image courtesy of Pexels. Photo credit: Cottonbro Studio.