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2012 Online Layaway Trends Report

THE COST OF CREDIT & ELAYAWAY I Owe you VS I owe me AVERAGE LAYAWAY PURCHASE AMOUNT: $400 Layaway 2012 ONLINE LAYAWAY TRENDS The Smart Way to Plan & Pay" MOST POPULAR PAYMENT OPTION: ACH AVERAGE TIME OF LAYAWAY SCHEDULE: 5 MONTHS Brought to you by the online layaway experts. Transacting exclusively with layaway gives eLayaway, Inc. a unique The following infographic highlights some of the trends and user perspective on the trends and habits of consumers using this behavior observed between November 1, 2011 and October 31, 2012. increasingly popular payment alternative. Although layaway has been Known as the Layaway Year, this offset time period provides a more around for over half a century, it is only recently that its use is able to accurate depiction of layaway use due to the pre-payment completion be measured across an expansive retail industry that includes the cycle unique to the layaway process. Analytics presented represent online marketplace. While cash and credit are still the most popular users of eLayaway, an online layaway payment system. form of payment, more and more consumers are turning to layaway; but not necessarily for the reasons one might think. 63% PAY OFF LAYAWAYS EARLY $500 Credit Card elayaway 23.41% APR* 3.9% Flat Fee* $0-50KI AGE BRACKETS HOUSEHOLD INCOME $50-100KI $ CONSUMER PROFILES 25% 10% 6% $100-150k I 19% 18% rtemet Average 12% 12% internet Average 19% 17% temet Average 21% 19% htemet Average 17% 17% htemet Average 9% 10% nemet Average 4% 6% htemet Average under 18 $150k+ I 1.02x Internet Average ETHINICITY 60% 18-24 1.0x Anternet Average GENDER 65 76% ntemet Average $ Caucasian 25-34 86x Intermet Average 1.07x Intermet Average $ 18% 9% internet Average POPULAR CATEGORIES: African American 35-44 1.92x Internet Average 1.1x Internet Average FINAL COST WITH INTEREST or FEES 5% 4% intemet Average Asian 45-54 $534.69 $519.50 1.3x Internet Average 99x Internet Average Gift Cards 26.58% 11% 9% kntemet Average Hispanic A Appliances 55-64 6.58% *Credit card APR was based on a rate survey conducted by CreditCards.com in 2012 - the average APR for "Bad Credit" was 23.41. The illustration assumes that both the credit card and the layaway were paid off in 6 months. The layaway fee of 3.9" was based on elayaway's highest transaction fee. 1.15x Intemet Average 85x Internet Average 65% 2% 1% kntormet Avorage Other 42.00% 65+ Electronics 1.11x Internet Average (35° „68x Internet Average 8.31% 7.60% Internet Average Internet Average Toys Jewelry POPULAR LAYAWAY PROGRAMS COMPARED DID YOU KNOW? 3.29% 3.07% Automotive 2.58% Baby PROGRAM FEATURES KMART WALMART TOYS"R"US" • 95% of consumers surveyed' agreed that they would be "More Than Likely" to make a purchase given layaway was provided as a payment option. • A recent survey² found that more than one-third of U.S. adults are at least "Somewhat Likely" to use layaway for holiday shopping. • In addition to traditional retail products, online layaway can be used to pay for travel, event tickets and even travel packages. • Layaway is not only a great sales tool for retailers, it also provides insight to consumer demand and inventory management. • According to the FDIC, over 28% of U.S. households are either unbanked or underbanked. • Over half of all U.S. households with a credit card carry a balance from month-to-month. SEARS ELAYAWAY Furniture Categories Available Online Available Online Y Y N Y Available Brick & Mortar Y Y Y Y Flexible Payment Schedule Year-round Availability Layaway Fees* N N N Y Y Y N Y $5 - $10 $5 - $10 $0 $5 3.9% flat Cancellation Fees* $10 - $20 The lesser of 10% or $25 $10 - $20 $5 $10 Available for all Products N N Y Automated Payments Credit Reporting Services N N N Footnotes: 1) 2010 elayaway Consumer Survey; 2) 2012 CouponCabin Survey; 3) 2011 National Survey of Unbanked and Underbanked Households released in 2012 by the FDIC. N Y Dedicated Customer Service N N Y * Fees listed are standard program fees and not promotional fees. Fees are subject to state restrictions. FACTOID NOVEMBER IS THE MOST POPULAR LAYAWAY MONTH Layaway Triggers MOTHER'S DAY GRADUATIONS FATHER'S DAY ВАCK-TO-SCHOOL HOLIDAYS CONSUMER LAYAWAY SEASONS Year-at-a-Glance Q1- Holiday Hangover Q2- The Summer of Funds Q3- Christmas in July Q4- The Holiday Rush Soon after the holidays, many consumers are recovering from over- spending. Those that used credit cards to fund their spree are finally getting their statements in the mail. Layaway is a great way to engage with consumers and help them commit to a purchase during this traditionally-slow time. With the holidays, Valentine's, Mother's and Father's Day behind them, some consumers use this time of year to focus on them- selves. They use layaway to plan the perfect Summer. Items like backyard pools, swing sets and even family trips are popular layaway items. Not just a cliche, Christmas in July is a great way to help con- sumers plan ahead for their holiday shopping and back-to- school. Many consumers use this time to stock up on popular Gift Cards in preparation for Black Friday. Even last minute shoppers appreciate the flexibility of layaway. This time of year is also a popular time to start a layaway for Valentine's Day or a TV for Super Bowl Sunday. elayawayinc.com > 1650 Summit Lake Drive, Suite 103 > Tallahassee, FL 32317 > 877.352.9292 THE COST OF CREDIT & ELAYAWAY I Owe you VS I owe me AVERAGE LAYAWAY PURCHASE AMOUNT: $400 Layaway 2012 ONLINE LAYAWAY TRENDS The Smart Way to Plan & Pay" MOST POPULAR PAYMENT OPTION: ACH AVERAGE TIME OF LAYAWAY SCHEDULE: 5 MONTHS Brought to you by the online layaway experts. Transacting exclusively with layaway gives eLayaway, Inc. a unique The following infographic highlights some of the trends and user perspective on the trends and habits of consumers using this behavior observed between November 1, 2011 and October 31, 2012. increasingly popular payment alternative. Although layaway has been Known as the Layaway Year, this offset time period provides a more around for over half a century, it is only recently that its use is able to accurate depiction of layaway use due to the pre-payment completion be measured across an expansive retail industry that includes the cycle unique to the layaway process. Analytics presented represent online marketplace. While cash and credit are still the most popular users of eLayaway, an online layaway payment system. form of payment, more and more consumers are turning to layaway; but not necessarily for the reasons one might think. 63% PAY OFF LAYAWAYS EARLY $500 Credit Card elayaway 23.41% APR* 3.9% Flat Fee* $0-50KI AGE BRACKETS HOUSEHOLD INCOME $50-100KI $ CONSUMER PROFILES 25% 10% 6% $100-150k I 19% 18% rtemet Average 12% 12% internet Average 19% 17% temet Average 21% 19% htemet Average 17% 17% htemet Average 9% 10% nemet Average 4% 6% htemet Average under 18 $150k+ I 1.02x Internet Average ETHINICITY 60% 18-24 1.0x Anternet Average GENDER 65 76% ntemet Average $ Caucasian 25-34 86x Intermet Average 1.07x Intermet Average $ 18% 9% internet Average POPULAR CATEGORIES: African American 35-44 1.92x Internet Average 1.1x Internet Average FINAL COST WITH INTEREST or FEES 5% 4% intemet Average Asian 45-54 $534.69 $519.50 1.3x Internet Average 99x Internet Average Gift Cards 26.58% 11% 9% kntemet Average Hispanic A Appliances 55-64 6.58% *Credit card APR was based on a rate survey conducted by CreditCards.com in 2012 - the average APR for "Bad Credit" was 23.41. The illustration assumes that both the credit card and the layaway were paid off in 6 months. The layaway fee of 3.9" was based on elayaway's highest transaction fee. 1.15x Intemet Average 85x Internet Average 65% 2% 1% kntormet Avorage Other 42.00% 65+ Electronics 1.11x Internet Average (35° „68x Internet Average 8.31% 7.60% Internet Average Internet Average Toys Jewelry POPULAR LAYAWAY PROGRAMS COMPARED DID YOU KNOW? 3.29% 3.07% Automotive 2.58% Baby PROGRAM FEATURES KMART WALMART TOYS"R"US" • 95% of consumers surveyed' agreed that they would be "More Than Likely" to make a purchase given layaway was provided as a payment option. • A recent survey² found that more than one-third of U.S. adults are at least "Somewhat Likely" to use layaway for holiday shopping. • In addition to traditional retail products, online layaway can be used to pay for travel, event tickets and even travel packages. • Layaway is not only a great sales tool for retailers, it also provides insight to consumer demand and inventory management. • According to the FDIC, over 28% of U.S. households are either unbanked or underbanked. • Over half of all U.S. households with a credit card carry a balance from month-to-month. SEARS ELAYAWAY Furniture Categories Available Online Available Online Y Y N Y Available Brick & Mortar Y Y Y Y Flexible Payment Schedule Year-round Availability Layaway Fees* N N N Y Y Y N Y $5 - $10 $5 - $10 $0 $5 3.9% flat Cancellation Fees* $10 - $20 The lesser of 10% or $25 $10 - $20 $5 $10 Available for all Products N N Y Automated Payments Credit Reporting Services N N N Footnotes: 1) 2010 elayaway Consumer Survey; 2) 2012 CouponCabin Survey; 3) 2011 National Survey of Unbanked and Underbanked Households released in 2012 by the FDIC. N Y Dedicated Customer Service N N Y * Fees listed are standard program fees and not promotional fees. Fees are subject to state restrictions. FACTOID NOVEMBER IS THE MOST POPULAR LAYAWAY MONTH Layaway Triggers MOTHER'S DAY GRADUATIONS FATHER'S DAY ВАCK-TO-SCHOOL HOLIDAYS CONSUMER LAYAWAY SEASONS Year-at-a-Glance Q1- Holiday Hangover Q2- The Summer of Funds Q3- Christmas in July Q4- The Holiday Rush Soon after the holidays, many consumers are recovering from over- spending. Those that used credit cards to fund their spree are finally getting their statements in the mail. Layaway is a great way to engage with consumers and help them commit to a purchase during this traditionally-slow time. With the holidays, Valentine's, Mother's and Father's Day behind them, some consumers use this time of year to focus on them- selves. They use layaway to plan the perfect Summer. Items like backyard pools, swing sets and even family trips are popular layaway items. Not just a cliche, Christmas in July is a great way to help con- sumers plan ahead for their holiday shopping and back-to- school. Many consumers use this time to stock up on popular Gift Cards in preparation for Black Friday. Even last minute shoppers appreciate the flexibility of layaway. This time of year is also a popular time to start a layaway for Valentine's Day or a TV for Super Bowl Sunday. elayawayinc.com > 1650 Summit Lake Drive, Suite 103 > Tallahassee, FL 32317 > 877.352.9292

2012 Online Layaway Trends Report

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eLayaway's 2012 Online Layaway Trends Report identifies and compares both online and brick & mortar layaway programs in inforgraphic form. The report highlights trends and user behavior of the Company...

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