| Global. The trend for Prepaid Cards began in the USA. Back in 1996 the market was worth $4 billion, today it has annual sales in excess of $236 billion1. The UK is leading the way in Europe, though many other European countries are following suit and Gift Cards can be seen on the shelves of many European retailers. It is estimated that there will be over $600 billion in global prepaid spend by 20102. European. |
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About five years ago Gift Cards made their debut on to the UK high street and today we are seeing a phenomenal move from paper gift vouchers to plastic Prepaid Cards by the majority of high street chains, with 70% of UK retailers currently offering a Gift Card7. As well as traditional retailers, Gift Cards are becoming available for days out, restaurants, spas and experiences. In fact leisure delivered the strongest category growth of remarkable 15.7% Y-O-Y in Q4 20098.
According to the UK Gift Card and Voucher Association, £3.5 billion of worth of gift vouchers and cards are sold each year in the UK9. This is a mixture of cards and vouchers sold as gifts and also business-to-business use like staff incentives and customer motivation.
Opening up new opportunities.
Prepaid Cards are opening up new opportunities for both retailers and non-retailers, and growth in the market is forecast to be as high as 20% year-on-year as more as more Gift Cards are launched10. It is predicted that the UK will become Europe’s largest single market for Prepaid Card spending, reaching £16.5 billion by 201011. It is also estimated that 7% of cards in circulation and 3.5% of payment value will be prepaid12.
Reference:
1. Mercator Advisory Group
2. PSE Consulting
3. UK Gift Card and Voucher Association
4. Global Prepaid Exchange
5. PSE Consulting
6. PSE Consulting
7. UK Gift Card and Voucher Association
8. UK Gift Card and Voucher Association
9. UK Gift Card and Voucher Association
10. UK Gift Card and Voucher Association
11. PSE Consulting
12. PSE Consulting
