First Data has released its SpendTrend Closed-Loop prepaid analysis that looks back at performance for October 2010 and while sales volume looks positive; consumers continue to be budget conscious and are placing lower values on each card purchased. As a result of the lower dollar volume spending on closed loop gift cards grew by only 2.7% as compared to last year despite the fact the number of gift cards sold (activations) increased by 11.7%; which is up 2.7% from last month. Mercator Advisory Group’s CustomerMonitor survey conducted this summer indicated that knowledge of reload capability was extremely limited, however aggressive marketing appears to be turning the tide. According to this First Data SpendTrend report; “Overall dollar volume growth of reloads was 25.2%, an increase from September’s growth of 20.7%. October’s reload transaction growth was 34.4%, compared to September’s growth of 30.4%, as consumers continued to use their gift cards for purchases.”
The SpendTrend Closed-Loop Prepaid Cards analysis is part of First Data’s suite of SpendTrend analytics tools. First Data will release semi-monthly prepaid card analyses, along with other SpendTrend special editions, through the holiday season to provide insight into consumer spending.
Read full pres release: https://www.firstdata.com/en_us/about-first-data/media/announcements-/11-15-10
For more information on First Data SpendTrend, visit: www.firstdata.com/infoanalytics
