The document discusses the growing influence of prepaid gift cards and incentives on consumer purchasing behavior and the B2B gift card market. It highlights findings from First Data's annual prepaid consumer insights study, which measures trends in gift card purchases and reloading. The report also emphasizes the effectiveness of incentives in driving sales and customer engagement in both consumer and corporate settings.

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© Copyright 2015 | First Data Corporation
Michael Hursta VP, Prepaid
Consumers Reap
the Rewards of
Prepaid Gift Cards

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• Consumers purchasing plastic gift cards
are still HEAVILY influenced by
incentives
• In addition to plastic gift card sales,
incentives are driving…
o e-gift card sales
o Self-use of e-gift cards
o New gift card branding & messaging
o Purchase behavior
o Reloads
o B2B gift & B2B e-gift card sales
Prepaid cards are now the most frequently used reward in corporate incentive programs.*
Incentives Drive More Than Plastic Sales
*Source: Incentive Research Foundation (IRF) It's In the Cards: An In-Depth
Look at Prepaid Cards in Incentive, Rewards & Recognition Programs

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Consumer Insights Study
What is it?
• Since 2001, First Data has conducted an annual Prepaid
Consumer Insights study measuring consumer
purchase behavior, trends and interest in prepaid gift
cards.
Objectives?
• Quantify % of US consumers purchasing and receiving
gift cards
• Identify behaviors associated with purchasing,
receiving & reloading
• Measure purchase behavior and/or receipt of e-gift &
physical cards
• Compare 2014 study to 2013 and 2012 studies
US Survey
• Online survey of 3,724 consumers 18+
• Site: http://www.firstdata.com/giftcards/consumer-
insights/index.html

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20%
82%
5% 3%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Count USD Amount
Virtual Card Activations
Total Activations
5% of Total
Activations
First Data Prepaid Virtual Growth 2013 vs. 2014
Digital gifting continues to breathe new life into the prepaid market.
4% of Total
Activations

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Designs & Incentives Powered Sales Growth
According to Bloomberg Business Week, Nov 13,
2014 “Online purchases cut into the foot traffic at retail
stores, and that meant fewer latte breaks for harried
shoppers. Same-store sales growth slowed in 2013
Holiday. The company created an alternative strategy to
drive traffic in 2014*.
Strategy: 100 different designs for its gift cards to
drive sales and foot traffic & the Promotion “Starbucks
for Life”
Results: $1.1 billion were loaded on the company’s
cards in the U.S. and Canada throughout the most
recent holiday season, 1 in 7 received their gift cards.
2.5 million Starbucks cards were activated on Christmas
Eve alone.
To add some perspective, Starbucks generated $16.4
billion in revenue globally in the most recent fiscal year.
Gift cards generate more traffic particularly when incorporated into loyalty.

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Incentives are driving B2B gift card market growth.
• The B2B gift card market is growing in size and popularity,
reflecting ever-wider enthusiasm by recipients*
o Employee and sales incentives
o Consumer rebates and incentives
o Loyalty programs
• 45% of companies are using gift cards as a reward, with the
largest companies using them at a rate of 56%.*
• Of companies using gift cards…*
o 67% are using them as employee incentives
o 38% sales incentives
o 30% customer rewards
o 8% allocated to channel incentives
*Source: Incentive Gift Card Council (IGCC) study completed by Incentive
Research Foundation (IRF) & Aspect Market Intelligence
B2B Incentive Statistics - USA

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Incentive Point Redemptions
• After launching on November 12th,
the Gyft card rapidly grew in
popularity taking 3rd place with
$86k in redemptions
• December was a record month for
the Gyft card, earning 1st place
with $151k in redemptions
• Employee Benefit: Gift cards were
wildly successful over the holiday
season
• Employer Benefit: Choosing gift
cards vs. association cards,
eliminates fees
Gyft Card Rapidly Embraced by Employees
38%
19%
14%
10%
10%
9%
November Redemptions
21%
21%
31%
9%
8%
10%
December Redemptions

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Which of the following incentives might encourage you to reload your gift cards?
[among receivers/self-purchasers]
[n=1610]
69%
54%
45%
13%
Bonus bucks added on to the
gift card (e.g., an additional
$2 extra for a $20 reload)
Free item with reload (e.g.,
Starbucks latte for reloading a
Starbucks card)
Loyalty/rewards points for
reload
None of the above
Incentives Encourage Reloads

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• BROADER DISTRIBUTION. Mobile apps are used to reach a
broader set of consumers and expand your gift card
distribution
• CONSUMER CONVENIENCE. Mobile commerce means
offering consumers the most convenient option of all and
keeping you connected to them
• INCREASED USAGE. One-to-one marketing leads to
increased gift card usage, uplift and repeat sales
• SOCIAL GIFTING. Creates an additional layer of social
activity to a sale and maximizes your brands exposure
• MORE EFFICENT. Mobile apps offer a more efficient use of
your marketing dollars
Mobilizing Means Opportunity
Consumers are increasingly turning to mobile gifting as a purchasing option.

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Thank you.