year-over-year dollar volume growth of activations … · 2020-06-02 · edition: full month...

©2010 First Data Corporation. All Rights Reserved.

SpendTrend™ Closed Loop Prepaid Cards

Please read “Definitions” on page 5.

SpendTrend™ Closed Loop Prepaid Cards | Edition: November 2010 | Version 121410

First Data SpendTrend Closed Loop Prepaid Cards, is based on total year-over-year activity and does not represent First Data’s financial performance. Closed Loop Prepaid Cards refers to merchant branded spending/gift cards, incentive and promotional cards.

Edition: Full Month November 2010 | Published: December 14, 2010, 9:00 am EDT

GiFT CARD DoLLAR VoLumE SummARy FoR NoVEmbER 2010

Total

-25% 0% 25% 50% 75%

Activations

Redemptions

Reloads

5.9%

8.6%

24.3%

Specialty Retail

-25% 0% 25% 50% 75%

Activations

Redemptions

Reloads 11.3%

-0.4%

7.3%

Casual Dining

-25% 0% 25% 50% 75%

Activations

Redemptions

Reloads -26.1%

3.0%

8.1%

QSR

0% 25% 50% 75% 100%

Activations

Redemptions

Reloads

43.5%

16.5%

82.7%

Key InsIghts

Activation Dollar Volume growth Rebounded in november: As consumers began their holiday shopping, dollar volume growth of activations improved. November’s overall dollar volume growth for activations rose to 8.6%, compared to growth of -2.7% in November 2009. Consumers responded to aggressive incentive cards promotions which helped to improve overall dollar volume growth.

Casual Dining Benefited from holiday Rush: Dollar volume growth of activations for the Casual Dining category was 8.1%; a healthy increase from october’s decline of -3.1%. Casual Dining prepaid cards were heavily promoted at “gift card malls” which resulted in improved activation growth. “Gift card malls” are racks in stores that offer a variety of prepaid closed loop cards.

in November, closed loop prepaid cards benefited from a strong start to the holiday season.

YEAR-OVER-YEAR DOLLAR VOLUME GROWTH OF ACTIVATIONS WAS STRONG IN NOVEMBER

2©2010 First Data Corporation. All Rights Reserved.SpendTrend™ Closed Loop Prepaid Cards | Edition: November 2010 | Version 121410


-10%

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Nov 10Sep OctAugJulMayAprMarFebJanDecNov 09 Jun

Dollar Volume Growth in Gift Card Activations by Industry

––– QSR......Total––– Casual Dining––– Specialty Retail

7.3%

8.6%

16.5%

8.1%

20%

10%

0%

-10%

-20%

-30%

20%

10%

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30%


-10%

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-30%

20%

10%

0%

30%


-10%

10%

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20%


Transaction Growth in Gift Card Activations by Industry


4.4%

10.0%

15.6%

9.1%

20%

10%

0%

-10%

-20%

-30%

20%

10%

0%

30%


Average Ticket Growth in Gift Card Activations by Industry

––– Specialty Retail––– QSR––– Casual Dining......Total

-1.3%

0.7%

2.8%

-0.9%0%

-10%

10%

0%

20%


Activations by Industry

Q1 10 Q2 10 Q3 10 Oct 10 nov 10

total 2.6% 6.4% 4.6% 2.7% 8.6%

specialty Retail 8.4% 12.1% 13.1% 1.4% 7.3%

Casual Dining 4.1% 5.2% 1.4% -3.1% 8.1%

QsR 12.6% 15.0% 11.2% 16.9% 16.5%

Q1 10 Q2 10 Q3 10 Oct 10 nov 10

total 2.7% 2.7% 3.9% 11.7% 10.0%


Casual Dining 7.0% 5.4% 2.8% 1.3% 9.1%

QsR 10.7% 13.7% 10.8% 17.8% 15.6%

Q1 10 Q2 10 Q3 10 Oct 10 nov 10

total -0.1% 3.6% 0.7% -8.0% -1.3%

specialty Retail 0.0% 9.2% 6.5% -2.5% 2.8%

Casual Dining -2.7% -0.2% -1.4% -4.4% -0.9%

QsR 1.6% 1.2% 0.3% -0.8% 0.7%

Nov 09 Nov 10

$34.32 $33.87

$52.05 $53.50

$29.14 $28.87

$14.04 $14.14

Average Ticket Value

ACTiVATioN TRANSACTioN GRoWTH WAS HEALTHy

overall year-over-year transaction growth remained healthy at 10.0% in November. Casual Dining saw a strong uptick in transaction growth; significant gains in third party distribution could be a key contributing factor.

ACTiVATioN AVERAGE TiCKETS iNCREASED FRom oCTobER

The year-over-year average ticket value of activations grew in November to -1.3%, up from october’s low of -8.0%. As consumers shopped for holiday gifts, they increased the initial value of the prepaid closed loop cards they purchased.

ACTiVATioN DoLLAR VoLumE GRoWTH WAS 8.6%

November’s year-over-year dollar volume growth for activations was 8.6%, a significant increase from october’s growth of 2.7%. As the holiday shopping season kicked off, consumers purchased gift cards at Specialty Retail shops which also saw an uptick in activations to 7.3%, from october’s growth of 1.4%.

Activations are the initial purchase and loading of funds onto a closed loop gift card.



0%

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-20%

10%

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20%

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0%

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50%


Dollar Volume Growth in Gift Card Redemptions by Industry


-0.4%

5.9%

43.5%

3.0%

40%

30%

0%

10%

0%

-10%

40%

30%

20%

50%


10%

20%

Transaction Growth in Gift Card Redemptions by Industry


10%

0%

-10%

30%

20%

40%


1.8%

15.9%

36.3%

3.2%

30%

20%

0%

10%

Average Ticket Growth in Gift Card Redemptions by Industry

––– QSR––– Casual Dining––– Specialty Retail......Total

0%

-10%

-20%

10%

20%


-8.6%

-0.1%

5.3%

-2.1%

0%

-10%

Redemptions by Industry

Q1 10 Q2 10 Q3 10 Oct 10 nov 10

total 1.5% 8.4% 5.0% 7.4% 5.9%

specialty Retail 3.8% 8.8% 5.8% 1.3% -0.4%

Casual Dining -0.1% 2.9% 2.3% 6.7% 3.0%

QsR 7.8% 27.8% 33.5% 43.8% 43.5%

Q1 10 Q2 10 Q3 10 Oct 10 nov 10

total -0.7% 9.9% 12.0% 18.3% 15.9%


Casual Dining -0.2% 2.7% 1.8% 6.0% 3.2%

QsR 4.6% 21.4% 26.8% 34.5% 36.3%

Q1 10 Q2 10 Q3 10 Oct 10 nov 10

total 2.3% -1.3% -6.2% -9.2% -8.6%

specialty Retail 2.8% 6.6% 5.1% -0.6% -2.1%

Casual Dining 0.1% 0.2% 0.4% 0.7% -0.1%

QsR 3.0% 5.3% 5.3% 6.9% 5.3%

Nov 09 Nov 10

-$17.23 -$15.74

-$50.12 -$49.05

-$23.63 -$23.59

-$4.24 -$4.46


REDEmPTioN TRANSACTioN GRoWTH SLoWED SLiGHTLy To 15.9%

November’s year-over-year redemption transaction growth was 15.9%, a slight decline from october’s growth of 18.3%. year-over-year redemption transaction growth at QSR merchants increased for the sixth consecutive month; as cash strapped consumers opt for less expensive meals while on the go.

AVERAGE TiCKET SiZE oF REDEmPTioNS WAS -8.6%

in November, average ticket values improved slightly to -8.6%, from october’s negative year-over-year growth of -9.2%.

REDEmPTioN DoLLAR VoLumE GRoWTH WAS 5.9%

November’s year-over-year dollar volume growth of redemptions was 5.9%. This marked the lowest year-over-year growth since August 2010. As consumers continued to bargain shop, Specialty Retail posted negative year-over-year growth in redemptions of -0.4%.

Redemptions represent the purchasing of goods or services with a closed loop gift card.



20%

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90%

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-40%

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100%


Dollar Volume Growth in Gift Card Reloads by Industry

––– QSR......Total––– Specialty Retail––– Casual Dining

-26.1%

11.3%

82.7%

24.3%

60%

80%

40%

20%

-20%

0%

-20%

-40%

80%

60%

40%

20%

100%


0%

Transaction Growth in Gift Card Reloads by Industry


0%

-30%

90%

30%

60%

120%

Nov 10Sep OctAugJulMayAprMarFebJanDecNov 09 Jun8.9%

39.3%

101.0%

-0.3%

90%

60%

30%

0%

Average Ticket Growth in Gift Card Reloads by Industry

––– Specialty Retail––– QSR......Total––– Casual Dining

20%

-40%

0%

20%

40%


-19.0%

11.7%

-9.1%

-10.8%

0%

-20%

Reloads by Industry

Q1 10 Q2 10 Q3 10 Oct 10 nov 10

total 25.0% 25.5% 18.9% 25.2% 24.3%


Casual Dining -27.5% -19.3% -16.4% -13.2% -26.1%

QsR 38.1% 56.4% 65.3% 78.0% 82.7%

Q1 10 Q2 10 Q3 10 Oct 10 nov 10

total 21.7% 28.3% 29.6% 34.4% 39.3%

specialty Retail 12.5% 0.3% -2.5% -0.6% -0.3%

Casual Dining -13.3% -0.9% -9.0% -6.1% -8.9%

QsR 45.6% 67.6% 79.7% 96.2% 101.0%

Q1 10 Q2 10 Q3 10 Oct 10 nov 10

total 2.7% -2.2% -8.3% -6.9% -10.8%


Casual Dining -16.4% -18.6% -8.1% -7.5% -19.0%

QsR -5.2% -6.7% -8.0% -9.3% -9.1%

Nov 09 Nov 10

$35.75 $31.90

$46.22 $51.61

$109.12 $88.44

$27.16 $24.69


DoLLAR VoLumE GRoWTH oF RELoADS HELD STEADy

year-over-year dollar volume growth of reloads was 24.3%, compared to october’s growth of 25.2%. QSR dollar volume growth of reloads increased 82.7%, representing its highest year-over-year growth for 2010.

RELoAD TRANSACTioN GRoWTH WAS 39.3%

in November, transaction growth of reloads improved 39.3%. As consumers continued to frequent QSR merchants, reload transaction growth at QSRs outperformed all other categories with year-over-year growth of 101.0%.

AVERAGE TiCKET GRoWTH oF RELoADS DECLiNED

in November, overall average ticket growth of reloads decreased -10.8%, its lowest year-over-year growth since october 2009. As consumers shop for holiday gifts they are reloading additional funds to existing cards less frequently.

Reloads are the addition of value to an active closed loop gift card.

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All data is Prepaid closed data from First Data’s proprietary Prepaid systems.

All charts show year-over-year (yoy) growth based on same merchant activity for current month current year compared to same month prior year.

Growth rates are not seasonally adjusted.

Terms of Use

DEFiNiTioNSPrepaid Closed Loop Cards are merchant branded cards that can include spending cards, gift cards, incentive and promotional cards.

Activation is the initial purchase and loading of funds onto a closed loop gift card. The data shown represents the year-over-year growth in activations by dollar volume, transaction and average tickets for closed loop gift cards.

Redemptions represent the purchasing of goods or services with a closed loop gift card. The data shown represents the year-over-year growth in redemptions by dollar volume, transaction and average tickets for closed loop gift cards.

Reloads are the addition of value to an active closed loop gift card. The data shown represents the year-over-year growth in reloads by dollar volume, transaction and average tickets for closed loop gift cards.

year-over-year dollar volume growth of activations … · 2020-06-02 · edition: full month...

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