Booming Popularity of Branded Gift Cards

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

The survey, recently conducted by the Network Branded Prepaid Card Association
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 purchased a
branded gift card this holiday season. This is double the number of consumers who
purchased branded gift cards last year.

o 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%).

o 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%).

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