Gift Cards from American Express, Discover, MasterCard and Visa Earn 93% Satisfaction with Consumers

Business Wire, Nov 8, 2007

Survey of 1,788 Consumers Show Branded Gift Cards Are Chosen as a "Thoughtful" and "Intelligent" Gift

SHERBORN, Mass. -- A recent survey about gift cards that carry the American Express, Discover, MasterCard or Visa logo reveals that extremely high levels of consumer satisfaction are driving their triple-digit annual growth.1

The survey, commissioned by the Network Branded Prepaid Card Association (NBPCA) and conducted by Dan Horne, professor at Providence College and an expert on gift card purchasing habits of consumers, found that more than 93% of consumers who buy branded gift cards are satisfied with their purchase.

Branded gift cards carry the American Express, Discover, MasterCard or Visa logo. They are sold in many retail stores and bank branches and can be purchased online. Gift recipients can use them to buy the gift of their choice at merchants that accept the card brand.

"Extremely high consumer satisfaction is clearly driving sales of branded gift cards," said Professor Horne. "The survey reveals that gift-givers choose branded gift cards because they regard them as 'thoughtful' and 'intelligent' gifts and because they want 'recipients to get whatever they want.' Half of gift-givers say that their card recipients 'prefer to receive branded gift cards over traditional gifts.'"

The survey estimates that 28% of American consumers intend to purchase a branded gift card this holiday season. This is double the number of consumers who purchased branded gift cards last year.

Pleasing recipients motivates branded gift card purchasers

Survey respondents provided insight regarding why they choose branded gift cards over other gift options. The primary motivation is pleasing gift recipients:

* When asked to comment on a series of statements about why branded gift cards are purchased, the most popular answer was for recipients to get whatever they want (91%).

* A majority of respondents also indicated that branded gift cards are good for recipients who like to shop (85%) and they purchase cards as gifts if they do not know what the recipient would like or need (86%).

* Overwhelmingly, respondents suggested that branded gift cards are an intelligent way to give a gift (76%).

"This survey uncovers the true dynamics behind branded gift card buying," continued Professor Horne. "Gift-givers are pragmatic--they want to be smart about how they spend their money and to ensure that the recipient receives a thoughtful, useful and welcome gift. The overwhelming satisfaction numbers show that branded gift cards have met this need, and we can expect continued strong growth in the category."

Branded gift card trends this holiday

The survey also uncovered branded gift card trends this holiday season:

* 28% of consumers plan to purchase branded gift cards this holiday season, up from 13% of consumers last year. Branded gift card sales are predicted to more than double.

* The average consumer who plans to purchase branded gift cards this holiday season will purchase three to four cards.

* Branded gift cards are among the top five most popular gifts for holiday. Other popular gifts include clothing, books, music, videos, store gift cards and toys and games.

"Today's branded gift cards have struck the right balance with features, benefits, costs and communication to consumers," said Marilyn Bochicchio, NBPCA president and executive director. "Branded gift cards have been welcomed as a top choice to give thoughtful gifts to friends and loved ones."

A copy of the survey results may be obtained. Please contact Jennifer@nbpca.com to request a copy.

(1) The results are from an Internet study of 1,788 individuals from a representative panel of U.S. consumers. The margin of error is /- 2.5%.

About the NBPCA

The Network Branded Prepaid Card Association (NBPCA) is a nonprofit, inter-industry trade association that supports the growth and success of network branded prepaid cards and represents the common interests of the many players in this new and rapidly growing payments category. The NBPCA's Working Groups drive the activities of the Association for its more than 35 members. For additional information, visit www.NBPCA.com.