With more and more consumers relying on the internet for their Christmas shopping, the sale of digital gift cards is on the increase. 

Andrew Johnson, director-general of the UK Gift Card and Voucher Association comments on the increasing role digital gift cards are playing in the Christmas shopping season:

“The Christmas shopping war has well and truly begun, with many high street stores offering online and in-store discounts in a bid to improve sales during the holiday season.

"Faster broadband and smartphones have placed a heavier emphasis on internet shopping, which often peaks around ‘Cyber Monday’, the first Monday in December when American online retailers traditionally offer special discounts.

"Online sales of gift cards and vouchers have been experiencing significant growth, worth approximately £160 million per year to UKGCVA members. Some retailers are now offering digital gift cards, which are delivered via email or SMS and can be redeemed using a smartphone. We are seeing great success stories from the USA with digital programmes offered by the likes of Starbucks, Home Depot and Sears.

"Three of the eGift providers from the USA have recently joined the UK association: Giftango, CashStar and Transaction Wireless, and we expect to see many more UK retailers offering digital gift cards as we go into 2012.”