GiftCard Partners Blog

Prepaid and gift cards sales are amplified with new activity as technology paves the way to better than expected growth. Mercator Advisory Group recently reported that all segments of closed-loop prepaid exceeded their previous forecasts for 2010. In-store gift cards were forecasted at 4% growth for 2010, but total load volume hit $84.6 billion, up 10% from $76.9 in 2009. The B2B gift card market realizes much of this growth via gift card categories like digital-content (online games and social networking credit) and prepaid mobile; gift cards received more loads for these digital-content activities. Retailers are also doing a better job of integrating their gift cards with loyalty programs and other consumer promotions, which catches the attention of potential incentive and rewards buyers. “Loads on employee and partner incentive closed-loop cards increased 10% and loads on consumer-incentive cards also grew 10%”, states Digital Transactions in their Mercator report overview:
Buoyed by Gift Cards, Closed-Loop Prepaid Grew Faster Than Expected in 2010 “On the whole, what we’re seeing is even the closed-loop market is showing some resilience in the face of the economy,” Jackson says. Consumers seem to be recognizing the true value of their gift cards, and “many retailers are doing a better job of integrating their gift cards with loyalty programs and other promotions, Jackson says. “They’re realizing that gift cards are not just a plastic version of paper gift certificates,” he says. Source:
Digital Transactions: Buoyed by Gift Cards, Closed-Loop Prepaid Grew Faster Than Expected in 2010
 

Next week at the Incentive Marketing Association Annual Summit look for GiftCard Partners' Cheif Operating Officer Deb Merkin to moderate a panel entitled: "Challenges of Moving Bulk eCerts/mCerts Through the Distribution Pipeline."  The session will discuss the challenges and benefits of eCert and mCert technology and how they can and are expanding the incentive gift card market.  Deb will be moderating a panel of industry experts in discussion on this cutting edge topic.  The session will take place on Tuesday August 9th from 1:45 until 2:45.  
For more information check out the IMA Summit schedule here.  

Every once in a while I’ve got to blog a gift card feel-good story. In Indiana, the Worth County Development Authority is offering students in the county a $75.00 gift card to help with pricey back to school expenses. The non-profit organization is donating more than 1,300 gift cards, that’s more than $100,000 worth. Back to school can be a stressful and expensive time for families; it’s nice to see this creative use of gift cards. Watch the video below:  

From our eNews: Waste of Time & Money or Money Well-Spent? When creating our eNews, we sometimes come across information a little outside of health specific gift card news; this is such a piece.
We have seen writings representing both sides of the debate over health risk assessments and their value to an organization, and we feel that
this article outlines some great viewpoints and information. We're glad you stopped by! Leave a comment to voice your opinion or share an HRA success story ...
waste or worth it?

It’s always good news to hear that the reward you are presenting to your employees or loyalty program participants is still the strong choice. A new study released by First Data called “Consumer Insights Gift Card Survey Results”, announced that “prepaid gift cards are still a popular choice for gifts in the United States”. This is good news for those purchasing gift cards in bulk as you know you are making a good choice. Other indications that gift cards remain a strong trend in the B2B market is the study’s conclusion that more consumers are reloading their gift cards. This means that consumers (your employees and rewards participants) are loyal to their cards, be-it a physical plastic card, eCert (virtual gift card) or mCert (mobile gift card). It’s also nice to know that by participating in the B2B gift card market, we are infusing the economy with additional shopping dollars. Consumers are inclined to stand by the gift card and reload it, which increases sales opportunities for retailers. The First Data study also announced that “35% of those who reloaded closed-loop gift cards said they visited the store more often, and 20% said they spent more money during each visit”. All good news for our economy, but re-loadable and technology based gift cards are also great for our environment.
Check out our Are Gift Cards Going Green? Blog. The full study is available at
First Data’s website.