The U.S. Market for Prepaid Cards with a Focus on Gift Cards

Table of Contents

Chapter 1: Executive Summary

• Market Size and Growth
• Defining the Terms
• Closed Loop Versus Open Loop Gift Cards
• Positive Market Drivers for Prepaid Cards
• Gift Cards: Small but Growing Share of Payment Market
• Gift Card Penalties and Fees
• Gift Card Fees: Good or Bad is in the Eyes of the Beholder
• Packaged Facts Predicts $200 Billion on Prepaid Debit Cards in 2011
• Gift Card Projections from Packaged Facts
• Table 1-1a: U.S. Gift Card Market Volume: Projections, 2006-2010
• Table 1-1b: U.S. Gift Card Market Volume: Projections, 2006-2010
• Gift Cards as a Preferred Gift
• Table 1-2: Expenditures on Winter Holiday (Christmas, Hanukkah, Kwanzaa) Gifts, 2006 (percent)
• Year-Round Gift Spending Lags Winter Holiday Season
• Table 1-3: Annual Gift Expenditures Other Than on Winter Holidays, 2006 (percent)
• Majority of Winter Season Gift Buyers Choose Gift Cards
• Table 1-4: Annual Expenditures on Prepaid Gift Cards, 2006 (percent)
• Gift Card Purchases on the Rise
• Competitor Profiles
• American Express
• Discover Financial Services
• MasterCard
• Visa
• Blackhawk
• Coinstar
• Green Dot
• NetSpend
• Distribution and Sales
• Kiosks
• Online, Internet, E-commerce
• Supermarkets, C-Stores, Gasoline Outlets
• Case Studies
• Bass Pro Shops Gift Cards
• GiftCertificates.com
• The Smart Box
• Disney Gift Cards
• Arroweye Solutions
• The Consumer: What the Data Show
• National Retail Federation Looks Ahead to Winter Holidays
• Table 1-5: Types of Winter Holiday Gifts Respondents Prefer to Receive, 2007 (percent)
• National Retail Federation' s Post Holiday Findings
• Valentine' s Day Presents
• Mother' s Day
• Father' s Day Presents
• Graduation Presents
• Wedding Gifts
• Accounting, Regulatory and Legal Issues
• Overview of Escheatment Regulations on Unspent Gift Cards
• Simon Property Case
• Antifraud Developments
• Laundering Drug Proceeds
• Consumer Awareness
• Media Brouhahas
• Prepaid Opportunities
• Profitability Challenges
• Effective Packaging Sells
• Demographics
• Hispanic Market
• African American Market
• Gender
• Youth
• Gift Cards Drive January Sales

Chapter 2: Market Size and Growth

• Report Methodology
• Defining the Terms
• Prepaid Debit Cards
• Positive Market Drivers for Prepaid Cards
• Cards By Type: Definitions
• Prepaid Corporate Cards
• Great Substitute for Cash
• Health Care Cards
• Prepaid Market: Enormous Potential but Marketing and Profitability Challenges
• Obstacles to Profits
• Table 2-1: Sample Revenue Profile for Prepaid Card Product Excluding Float (percent)
• Table 2-2: Consumer Fees: Prepaid Cards
• Gift Cards: Small but Growing Share of Payment Market
• Closed Loop Versus Open Loop Gift Cards
• Semi Closed Loop
• Split Tender
• The Restaurant Problem
• Advantages of Gift Cards
• Consumer Demand
• Bank Distribution Channel
• BIN Sponsorships
• Counter-Sold Cards Have Edge as Last-Minute Gifts
• Gift Card Penalties and Fees
• Gift Card Fees: Good or Bad? (It' s in the Eyes of the Beholder)
• Market Size & Growth Forecast
  • Packaged Facts Predicts $200 Billion on Prepaid Debit Cards in 2011
  • Gift Card Projections from Packaged Facts
  • Table 2-3a: U.S. Gift Card Market Volume: Projections, 2006-2010
  • Table 2-3b: U.S. Gift Card Market Volume: Projections, 2006-2010
  • Gift Cards as a Preferred Gift
  • Table 2-4: Expenditures on Winter Holiday (Christmas, Hanukkah, Kwanzaa) Gifts, 2006 (percent)
  • Year-Round Gift Spending Lags Winter Holiday Season
  • Table 2-5: Annual Gift Expenditures Other Than on Winter Holidays, 2006 (percent)
  • Table 2-6: Percentage of Annual Gift Spending for Winter Holiday Gifts, 2006 (percent)
  • Majority of Winter Season Gift Buyers Choose Gift Cards
  • Table 2-7: Annual Expenditures on Prepaid Gift Cards, 2006 (percent)
  • Table 2-8: Annual Percentage of Total Gift Spending for Prepaid Gift Cards Among Adults Purchasing Some Prepaid Gift Cards (dollars and percent)
  • Purchasers Choose Gift Cards for All
  • Table 2-9: Recipients of Prepaid Gift Cards Purchased During Last 12 Months Among Adults Purchasing Some Prepaid Gift Cards (number and percent)
  • Gift Card Purchases on the Rise
  • Table 2-10: Anticipated Prepaid Gift Card Expenditures in the Upcoming 12 Months Among Adults Purchasing Some Prepaid Gift Cards (number and percent)
• Global Perspective
  • Introduction
  • Canada
  • Table 2-11: Canadian Stores Offering Gift Cards: By Trade Group, 2003-2005 (percent)
  • Sears Canada Enhances Sears Club Loyalty Program
  • VendTek Systems Launches Gift Card Mall
  • Europe
  • Miscellaneous Applications in Europe
  • SEPA Standardization
  • Austria: T-Mobile Paid Card Introduces Price Campaign
  • Italy
  • Spain: BBVA Banking Group Targets Corporate Clients with Prepaid Card
  • Switzerland: Swiss Bankers Travelers Cheques Looks to Expand Beyond Country Borders
  • United Kingdom
  • UK Prepaid Card Programs
  • Representative Applications
  • Secure Transactions on Internet
  • Asia
  • China
  • India
  • Malaysia
  • Singapore
  • South Africa
  • Latin America
  • Brazil
  • Money Transfers to Mexico Via Prepaid Cards
  • Australia
  • Microsoft Prepaid Computers in Emerging Markets

Chapter 3: Competitive Profiles

• Competitor Profiles
• American Express
• eFunds Agreement with American Express
• American Express Incentive Services
• Citi Branches Offer American Express Gift Cards
• A Mall Agreement
• Discover Financial Services
• Distribution Agreements
• Processing Agreements
• Corporate Developments
• MasterCard
• Small-Business Promotion
• Visa
• Visa USA/MetaBank Prepaid Contactless Card
• 7-Eleven to Offer Visa Reloading
• Reorganization and Initial Public Offering
• Authorized Platform
• Security
• Blackhawk Network
• Athletic Organization Relationships
• Coinstar
• Coinstar' s Business Model
• GreenDot
• Strategic Relationships
• Concerns on the Horizon
• NetSpend
• Strategic Relationships

Chapter 4: Marketing and New Product Trends

• Introduction
• Payroll Cards
• Payroll Alternative
• Representative Applications
• Employee Incentives
• Table 4-1: Most Popular Merchandise Award Options: Consumer/User Promotions 2005 (percent)
• Table 4-2: Most Popular Merchandise Award Options: Dealer Incentives 2005 (percent)
• Table 4-3: Most Popular Merchandise Award Options: Sales Incentives 2005 (percent)
• Table 4-4: Most Popular Merchandise Award Options: Non-Sales Employee Awards 2005 (percent)
• Representative Applications
• Marketing rebates
• Prepaid Cards for Payments of Small Sums
• Paying Suppliers
• Paying Winners
• Employer Health Incentives
• Health Care Cards
• Representative Applications
• Rewarding Research Moderators
• Taxi Rides
• Promotional Prizes
• Representative Applications
• Lottery Prizes
• Fundraising and Charitable Applications
• Representative Applications
• Travelers Cards
• Representative Applications
• Insurance Claims
• Government Benefits Programs
• Representative Applications
• Gun Redemption Incentive
• Child Support Payments
• Representative Applications
• Emergency Relief
• Customer Refunds
• AT&T Phone Services to U.S. Military
• Sending Money Abroad
• Visa Contactless Prepaid Cards
• Representative Applications
• Celebrity Cards
• Teacher Gift Cards
• Airline Gift Cards
• College Branded Gift Cards
• Community Gift Cards
• Consumer Rewards and Prizes
• Attractive Card Designs and Personalization
• Websites for Exchange of Cards

Chapter 5: Distribution and Sales

• Introduction
• Kiosks
• Representative Applications
• Online, Internet, E-commerce
• Mall-Wide Gift Cards
• Restaurants/Coffee Shops
• Supermarkets, C-Stores, Gasoline Outlets
• Representative Applications
• Service Firms
• Association Branding
• Mobile Phones/Telecom
• Small Businesses and Customization
• Airlines/Travel
• University Campuses
• Case Studies
• Bass Pro Shops Gift Cards
• GiftCertificates.com
• The Smart Box
• Disney Gift Cards
• 7-Eleven
• American Greetings Retail Stores
• Adult Entertainment
• TGI Friday' s
• Crate & Barrel
• Arroweye Solutions

Chapter 6: The Consumer

• What the Data Show
• National Retail Federation Looks Ahead to Winter Holidays
• Table 6-1: Types of Winter Holiday Gifts Respondents Prefer to Receive, 2007 (percent)
• Table 6-2: Types of Winter Holiday Gifts Respondents Prefer to Receive, 2007 (percent)
• Table 6-3: Types of Winter Holiday Gifts Respondents Prefer to Receive, 2002-2007 (percent)
• National Retail Federation' s Post Holiday Findings
• Table 6-4: Holiday Gift Card Sales: By Gender, 2006 (dollar, number and percent)
• Table 6-5: Holiday Gift Card Sales: By Age, 2006 (dollar, number and percent)
• Table 6-6: Holiday Gift Card Sales: By Income, 2006 (dollar, number and percent)
• Table 6-7: Holiday Gift Card Sales: By Region, 2006 (dollar, number and percent)
• Table 6-8: Types of Holiday Gift Cards Purchased: By Gender, 2006 (percent)
• Table 6-9: Types of Holiday Gift Cards Purchased: By Age, 2006 (percent)
• Table 6-10: Types of Holiday Gift Cards Purchased: By Income, 2006 (percent)
• Table 6-11: Types of Holiday Gift Cards Purchased: By Region, 2006 (percent)
• Table 6-12: Where Holiday Gift Cards Purchased 2006: By Gender (percent)
• Table 6-13: Where Holiday Gift Cards Purchased: By Age, 2006 (percent)
• Table 6-14: Where Holiday Gift Cards Purchased: By Income, 2006 (percent)
• Table 6-15: Where Holiday Gift Cards Purchased: By Region, 2007 (percent)
• Receiving Gift Cards
• Table 6-16: Number of Gift Cards Received During Holiday Season: By Gender, 2006 (number and percent)
• Table 6-17: Number of Gift Cards Received During Holiday Season: By Age, 2006 (number and percent)
• Table 6-18: Number of Gift Cards Received During Holiday Season: By Income, 2006 (number and percent)
• Table 6-19: Number of Gift Cards Received During Holiday Season: By Region, 2006 (number and percent)
• Table 6-20: Percentage Value of Gift Cards Redeemed to Date During Holiday Season: By Gender, 2006 (percent)
• Table 6-21: Percentage Value of Gift Cards Redeemed to Date During Holiday Season: By Age, 2006 (percent)
• Table 6-22: Percentage Value of Gift Cards Redeemed to Date During Holiday Season: By Income, 2006 (percent)
• Table 6-23: Percentage Value of Gift Cards Redeemed to Date During Holiday Season: By Region, 2006 (percent)
• Table 6-24: Spending Additional Dollars Beyond Value of Gift Card(s) to Purchase an Item(s) During Holiday Season: By Gender, 2006 (percent)
• Table 6-25: Spending Additional Dollars Beyond Value of Gift Card(s) to Purchase an Item(s) During Holiday Season: By Age, 2006 (percent)
• Table 6-26: Spending Additional Dollars Beyond Value of Gift Card(s) to Purchase an Item(s) During Holiday Season: By Income, 2006 (percent)
• Table 6-27: Spending Additional Dollars Beyond Value of Gift Card(s) to Purchase an Item(s) During Holiday Season: By Region, 2006 (percent)
• Other Holidays
• Valentine' s Day Presents
• Table 6-28: Gifts Planned for Valentine' s Day: By Gender, 2007 (percent)
• Table 6-29: Gifts Planned for Valentine' s Day: By Gender, 2006 (percent)
• Table 6-30: Gifts Planned for Valentine' s Day: By Age, 2007 (percent)
• Table 6-31: Gifts Planned for Valentine' s Day: By Income, 2007 (percent)
• Table 6-32: Gifts Planned for Valentine' s Day: By Region, 2007 (percent)
• Mother' s Day
• Graduation Presents
• Table 6-33: Gifts Planned for Graduation: By Gender, 2007 (percent)
• Table 6-34: Gifts Planned for Graduation: By Age, 2007 (percent)
• Table 6-35: Gifts Planned for Graduation: By Income, 2007 (percent)
• Table 6-36: Gifts Planned for Graduation: By Region, 2007 (percent)
• Wedding Gifts
• Father' s Day Presents
• Table 6-37: Gifts Planned for Father' s Day: 2007 (percent)

Chapter 7: Accounting, Regulatory and Legal Issues

• Accounting Aspects of Gift Cards
• Representative Applications
• Overview of Escheatment Regulations on Unspent Gift Cards
• Office of Thrift Supervision
• Office of the Comptroller of the Currency
• Simon Property Case
• State-by-State Legislation and Judicial Decisions
• Representative Applications
• Antifraud Developments
• Laundering Drug Proceeds
• Treasury Department Role in Addressing Fraud
• Private Industry Addresses Fraud
• Representative Applications
• The TJX Case
• Consumer Awareness
• Media Brouhahas
• Full Disclosure to Consumers
• Representative Applications
• Federal Reserve Payroll Ruling
• Federal Communications Commission
• Stored Value Gift Card Patent Claim

Chapter 8: Trends and Opportunities

• Innovative Applications
• Prepaid Opportunities
• Technical Opportunities
• E-purse and Smart Cards
• Hong Kong' s Experience with Contactless Smart Cards
• Mobile Payment Systems
• Patent Battles
• Profitability Challenges
• Effective Packaging Sells
• Customized and Holiday Designs
• Representative Applications
• Demographics
• Hispanic Market
• African-American Market
• Gender
• Children
• Teens
• Representative Applications
• Gift Cards Drive January Sales
• Gift Cards May Become the New Fruitcake
• Year-end Holiday Season
• Lengthening the Holiday Shopping Season
• Representative Applications
• Online Shopping

Appendix: Addresses of Selected Marketers