Table of Contents
Scope and Themes
-
- What you need to know
- Definition
- Consumer survey data
- Abbreviations
- Terms
Executive Summary
-
- Overview
- Who is offering prepaid cards?
- What are the opportunities?
- The impact of prepaid cards
- What are the challenges?
- Potential for the market
- Credit crunch may enhance prepaid card usage
- Struggling economy may diminish use of specific retailer gift cards
- Gift cards being used to stimulate business
Insights and Opportunities
-
- Key points
- Can prepaid cards replace cash?
- Prepaid cards could be the ultimate substitute for carrying cash
- What markets might be lucrative?
- Gift cards: getting more promotion than ever
- What’s the potential?
- What can prepaid card issuers do?
Fast Forward Trends
-
- Trend: Customization
- Trend: Transumers
- Trend: Over-optioned consumers
Market Size and Forecast
-
- Open-loop transactions and dollar volume
- Closed-loop transactions and dollar volume
-
- Figure 1: Open-loop and closed-loop prepaid summary, transactions and dollar value, 2006
- Gift cards
-
- Figure 2: Biggest issuers of gift cards, in alphabetical order, 2007
Competitive Context
-
- Key points
- Ongoing challenges to the industry
- Major players
- Finding wider distribution channels
- Standardizing the industry
- Does brand matter?
- Gift cards as sales incentives
-
- Figure 3: Most popular gift cards given as customer incentives, 2005
- Partnering to distribute gift cards
- “Smarter” gift cards
- Gift cards for good works
- Travel gift cards
- Gift cards doing business
- Customizing cards for business
- Gift cards: growth of a “secondary” market
Marketing Channels
-
- Key points
- How are prepaid and gift cards distributed?
- ATMs as new channel for prepaid gift cards
Prepaid and Gift Cards: Key Target Markets
-
- Key points
- Marketing to teens
- How many gift cards are teens buying and how much do they spend?
- Boys use gift cards more than girls
- Can gift cards lead teens to prepaid cards?
- Gift cards as wedding gifts
- Prepaid cards for the foreign market
- Prepaid cards for the unbanked or underbanked
- How big is the unbanked market?
- Who are the unbanked?
-
- Figure 4: Unbanked, by immigrant group, 2007
- Why don’t these consumers use banks?
-
- Figure 5: Major reasons reported for not holding a checking account, 2007
- Can these unbanked or underbanked consumers be won over?
- Who do the unbanked or underbanked do business with and why?
- Targeting payroll business
- Prepaid cards for healthcare
- Prepaid cards for teachers
- Prepaid cards for seniors
Market Drivers
-
- Are consumers less willing to spend?
- Can prepaid lead to better things?
- Legislative developments
Innovation and Innovators
-
- How are prepaid and gift card products developing?
- Retailers capitalize on one-time opportunities
- Responding to gas prices
- Making card use more flexible
- Innovative distribution channels – kiosks
- Success with the unbanked
- Prepaid cards linked to auto loans
- Banks using gift cards as incentives
- Gift cards that speak
- Gift cards for the ultra wealthy
- Virtual gift cards becoming more real
- Group gift cards
- Round gift cards
Advertising and Promotion
The Consumer – Those Buying and Those Receiving Gift Cards
-
- Key points
- Gift cards: how many are consumers buying?
-
- Figure 6: Number of gift cards purchased in the last 12 months, by gender, April 2008
-
- Figure 7: Number of gift cards purchased in the last 12 months, by age, April 2008
-
- Figure 8: Number of gift cards purchased in the last 12 months, by race/ethnicity, April 2008
- Gift cards: how many are consumers receiving?
-
- Figure 9: Number of gift cards received in the last 12 months, by gender, April 2008
-
- Figure 10: Number of gift cards received in the last 12 months, by age, April 2008
-
- Figure 11: Number of gift cards received in the last 12 months, by race/ethnicity, April 2008
- Gift cards: what are the occasions for buying them?
-
- Figure 12: Occasions for purchasing gift cards, by gender, April 2008
-
- Figure 13: Occasions for purchasing gift cards, by age, April 2008
-
- Figure 14: Occasions for purchasing gift cards, by race/ethnicity, April 2008
- Gift cards: what are the occasions for receiving them?
-
- Figure 15: Occasions received gift cards, by gender, April 2008
-
- Figure 16: Occasions received gift cards, by age, April 2008
-
- Figure 17: Occasions received gift cards, by race/ethnicity, April 2008
The Consumer – Behavior and Attitudes of Purchasers and Users
-
- Gift cards: do they work as sales incentives?
-
- Figure 18: Received gift card as an incentive from a retailer, by gender, April 2008
-
- Figure 19: Received gift card as an incentive from a retailer, by age, April 2008
-
- Figure 20: Received gift card as an incentive from a retailer, by race/ethnicity, April 2008
- Gift cards: how much will consumers pay in fees?
-
- Figure 21: Willingness to pay a convenience fee for a universal gift card, by gender, April 2008
-
- Figure 22: Willingness to pay a convenience fee for a universal gift card, by age, April 2008
-
- Figure 23: Willingness to pay a convenience fee for a universal gift card, by race/ethnicity, April 2008
- Universal gift cards: what are consumers paying for them?
-
- Figure 24: Amount of fees charged for last universal gift card purchased, by gender, April 2008
- Gift cards: what perks might work?
-
- Figure 25: Features desired in a gift card, by gender, April 2008
-
- Figure 26: Features desired in a gift card, by age, April 2008
-
- Figure 27: Features desired in a gift card, by race/ethnicity, April 2008
- Gift cards: how do consumers prefer to purchase them?
-
- Figure 28: Preferred marketing channel, by gender, April 2008
-
- Figure 29: Preferred marketing channel, by age, April 2008
-
- Figure 30: Preferred marketing channel, by race/ethnicity, April 2008
- Prepaid cards: do consumers want their kids to use them in college?
-
- Figure 31: Children attending college, would you prefer they use prepaid cards?, by gender, April 2008
-
- Figure 32: Children attending college, would you prefer they use prepaid cards?, by race/ethnicity, April 2008
- Prepaid payroll cards: which consumers are using them?
-
- Figure 33: Prepaid salary card usage, by gender and age, April 2008
-
- Figure 34: Prepaid salary card usage, by race/ethnicity, April 2008
- Prepaid payroll cards: what features do consumers like?
-
- Figure 35: Appeal of prepaid salary card usage, by gender, April 2008
-
- Figure 36: Appeal of prepaid salary card usage, by age, April 2008
-
- Figure 37: Appeal of prepaid salary card usage, by race/ethnicity, April 2008
- Prepaid cards: what don’t consumers like?
-
- Figure 38: Reasons for not being interested in using stored-value salary cards, by gender, April 2008
-
- Figure 39: Reasons for not being interested in using stored-value salary cards, by age, April 2008
-
- Figure 40: Reasons for not being interested in using stored-value salary cards, by race/ethnicity, April 2008
Cluster Analysis
-
- Overview
- Cardless and uninterested
- Prepaid payers
- Used card dealers
- Demographic and attitudinal tables
-
- Figure 41: Gift card usage clusters, April 2008
- Figure 42: Number of gift cards or stored-value cards purchased and received in the last 12 months, by gift card usage clusters, April 2008
- Figure 43: Occasions for purchasing and receiving gift cards or stored-value cards, by gift card usage clusters, April 2008
-
- Figure 44: Incidence of receiving or redeeming gift cards as an incentive from a retailer, by gift card usage clusters, April 2008
- Figure 45: Willingness to pay a convenience fee to purchase a universal gift card (a gift card that can be used anywhere), by gift card usage clusters, April 2008
-
- Figure 46: Amount of fees charged for the last universal gift card you purchased (a gift card that can be used anywhere), by gift card usage clusters, April 2008
- Figure 47: Interest in a gift card or stored-value card that…, by gift card usage clusters, April 2008
-
- Figure 48: Preferred places to purchase a gift card or stored-value card, by gift card usage clusters, April 2008
- Figure 49: Do you have your salary loaded onto a prepaid card, rather than receiving it by check or direct deposit?, by gift card usage clusters, April 2008
-
- Figure 50: Reasons for wanting to use a prepaid or stored-value card to receive salary, by gift card usage clusters, April 2008
- Figure 51: Gift card usage clusters, by gender, April 2008
-
- Figure 52: Gift card usage clusters, by age, April 2008
- Figure 53: Gift card usage clusters, by income, April 2008
-
- Figure 54: Gift card usage clusters, by race, April 2008
- Figure 55: Gift card usage clusters, by Hispanic origin, April 2008
- Methodology
Custom Consumer Groups
-
- Key points
- Gift cards
- Differences between moms and women without children
-
- Figure 56: Gift cards purchased in last 12 months, moms vs. females with no children, April 2008
-
- Figure 57: Gift cards received in last 12 months, moms vs. females with no children, April 2008
-
- Figure 58: Occasions for which gift cards were purchased in last 12 months, moms vs. females with no children, April 2008
-
- Figure 59: Occasions for which gift cards were received in last 12 months, moms vs. females with no children, April 2008
-
- Figure 60: Interest in special features, moms vs. females with no children, April 2008
-
- Figure 61: Preferred method for purchasing cards, moms vs. females with no children, April 2008
- Gift card purchases by gender
-
- Figure 62: Occasions for which gift cards were purchased – males, by age, April 2008
-
- Figure 63: Occasions for which gift cards were received – males, by age, April 2008
-
- Figure 64: Occasions for which gift cards were purchased – females, by age, April 2008
-
- Figure 65: Occasions for which gift cards were received – females, by age, April 2008
- Card purchases by age and ethnic group
-
- Figure 66: Occasions for which gift cards were purchased, by race/ethnicity and age, April 2008
- Gift card features by age and ethnic group
-
- Figure 67: Interest in certain features of gift cards, by race/ethnicity and age, April 2008
- Prepaid cards
- Attitudinal differences by age and gender
-
- Figure 68: Appeal of reasons for using prepaid card for salary – males, by age, April 2008
-
- Figure 69: Appeal of reasons for using prepaid card for salary – females, by age, April 2008
-
- Figure 70: Reasons for not using prepaid card for salary – males, by age, April 2008
-
- Figure 71: Reasons for not using prepaid card for salary – females, by age, April 2008
- Differences by race/ethnicity
-
- Figure 72: Appeal of reasons for using prepaid card for salary, by race/ethnicity and age, April 2008
-
- Figure 73: Reasons for not using prepaid card for salary, by race/ethnicity and age, April 2008
Appendix: Advertising and Promotion
-
-
- Figure 74: Email advertisement from American Express, January 2008
- Figure 75: Metabank prepaid MasterCard Card acquisition email, March 2008
-
- Figure 76: Johnny Cash Prepaid mastercard email advertisement from Monterey county Bank, January 2008
- Figure 77: Palm Desert Prepaid MasterCard email advertisement, January 2008
-
- Figure 78: CapitalOne Prepaid Visa Card advertisement, April 2007
- Figure 79: Commerce Bank (New Jersey) Visa gift card print advertisement, June 2008
-
Appendix: Summary of Other Studies
-
- Key points
- Gift cards: are consumers using them more often?
-
- Figure 80: Five-year tracking of American consumers’ year-round gift card purchases and use, 2001-05
- Gift cards: which types are consumers using?
- Gift cards: when are consumers buying them?
- Gift cards: who are consumers buying them for?
- Gift cards: where do consumers purchase them?
- Gift cards: are consumers going online?
- Gift cards: how much do consumers spend?
- Gift cards: getting “rapped”
- Prepaid cards: who uses them?
- Prepaid cards: what do consumers like about them?
-
- Figure 81: Utilization of funds loaded into the prepaid card account, February 2007
- Figure 82: Average cardholder transactions, February 2007
- Prepaid cards: when do consumers use them?
-
- Figure 83: Holiday credit/debit card volume for the five weeks ending December 25, 2005-07
- Prepaid cards: how often do consumers load and spend the funds?
-
- Figure 84: Frequency and value of loads made into account, 2007
- Figure 85: Frequency and value of POS transactions, February 2007
- Prepaid cards: how much do consumers pay to use them?
-
- Figure 86: Typical consumer fees for activating and using prepaid cards, February 2007
- The unbanked and prepaid cards: spending habits
-
- Figure 87: The primary unbanked spending categories (in gross dollars spent), 2006
- The banked and prepaid cards: spending habits
-
- Figure 88: Banked spending categories (in gross dollars), 2006
Appendix: Trade Associations
Back to top