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Gift Cards: Plastic Today, Digital Tomorrow

$50 GIFT CARDS: PLASTIC TODAY, DIGITAL TOMORROW E-gifting, through digital and mobile channels, has taken hold and will deliver $4 billion in spending in the US, an 8-fold increase over 2012. HOW MUCH ARE GIFT CARD SALES GROWING? %24 IN 2013, BY THE YEAR $118 BILLION 2015, $50 $25 HAPPY HOLIDAYS НАРPY $100 BIRTHDAY Gift cards will CONGRATS! account for will be loaded on gift cards in the U.S. That's a 7.9% higher than 2012. 18% OF HOLIDAY SPENDING US CONSUMPTION OF GIFT CARDS EXCEEDS THE GDP OF 136 COUNTRIES 2012 UN Rankings: 194 countries and territories: GDP of #58 is $106B ESTIMATED U.S. GIFT CARD SPENDING BY SEGMENT $160 Electronic gift cards are projected to hit $10 billion in sales by 2016 Continued growth from all segments is projected, $140 especially the Universal and Retail segments $10 Electronic gift cards are projected to create $3 billion in sales this year $120 $5 $0 $100 $41 $43 $43 $80 $36 $39 .... $28 $33 $30 $32 $60 $13 $13 $13 $14 $14 $12 $1 $11 $11 $19 $20 $20 $21 $40 $19 $18 $19 $16 $16 $20 $32 $31 $32 $37 $41 $44 $48 $49 $51 $0 2008 2009 2010 2011 2012 2013 2015 2016 Universal (Visa, Mastercard) Restaurant (McDonald's, Outback Steakhouse) Miscellaneous (BMW, Spa Envy) Retail (Home Depot, Macy's) e-Gifting (Amazon, App Stores) LESS SPILLAGE, FURTHER IMPROVEMENTS ANTICIPATED It used to be that 10% of gift cards went unused every year, but with more people placing a higher value on gift cards, we're seeing a big drop in spillage and an increase in fraud. SPILLAGE: GIFT CARDS THAT ARE EITHER LOST, EXPIRED OR SIMPLY GO UNUSED (OR PARTIALLY UNUSED) $50 LESS THAN 1% Spillage is decreasing. A downward trend below 1% is projected, The CARD Act put severe limits on expiration dates, junk fees, account usage charges and expiration dates. It has decreased spillage and which is substantially better than the 10% level experienced in previous years consumers have benefited tremendously LOST VALUE: SPILLAGE $9 $8 $7 $6 The CARD Act is enstated and dramatically lowers spillage rates $5 $3 $2 $1 $0 2007 2010 2012 2014 THE FUTURE OF GIFT CARDS Gift cards continue to grow and are quickly approaching $140 billion in volume. Product enhancements such as P2P and e-gifting will add scale, though the P2P Sector will likely move volume away from traditional card issuers and e-gifting will bring new users to the network. LEARN MORE ABOUT THE FULL RANGE OF CEB FINANCIAL SERVICES PROGRAMS AT HTTP://CEBURL.COM/GIFTCARDS SOURCES: (2011) Gift Cards 2011: Coming of Age in a World of Chaos, CEB TowerGroup Viewpoint #350 (2010) New Regulations Wipe Out Gift Card Junk Fees & Reposition Market, CEB TowerGroup Viewpoint #334 (2009) Gift Cards: Still Better to Give than Receive, CEB TowerGroup Viewpoint #302 (2008) Charred Card: Private-Label Gift Cards Stumble in a Weak Economy, CEB TowerGroup Viewpoint #236 (2007) Gift Cards: Keeping them from Becoming Drift Cards, CEB TowerGroup Research Note V49:44K BILLIONS 2014 BILLIONS 2008 600 2011 2013

Gift Cards: Plastic Today, Digital Tomorrow

shared by Lemonly on Jan 15
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In our latest infographic with CEB, we visualized the data from their annual gift card report. This year, it looks as though the switch from plastic gift cards to digital is definitely coming, especia...

Publisher

CEB

Designer

Lemon.ly

Category

Economy
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