© Giftex Prepay Ltd, 2009 Strictly private and confidential Independent Intelligence in Prepay Around the World 1 UKGCVA Research Tony Craddock - CEO

© Giftex Prepay Ltd, 2009

Strictly private and confidential

Independent Intelligence in Prepay Around the World 1

UKGCVA Research

Tony Craddock - CEOTony Craddock - CEO

© Giftex Prepay Ltd, 2009



The Most Exciting Presentationin 2009

Tony Craddock - CEOTony Craddock - CEO


Yes, research IS exciting


We’re ‘carrier agnostic’

• Paper

• Plastic

• Watch/Phone/Email/Carrots?


UKGCVA Research

• Consistent- Gift Guru

• Comparable- 2007 to 2008

• Valid- 500+ respondents


Now honestly . . .

Nugget box

“There, kittie, kittie, kittie”


I know you’re excited . . .

• But now consumers are getting excited about gift cards too

• Especially women •77% agree, ‘good experience’

•That’s a 90% increase

Almost NO dissatisfaction

(3%)


The customer experience is better in the US

• US, 96% agree, had good experience• UK, 76% agree

• But what matters is:- UK growth: +35%- US growth - -20%


And they’re buying more

2.75

2007

3.25

2008

+20%Growth

As family income rises, so does number of cards purchased


We saw it coming in 2005 • Forecast 2008 would be £4bn v actual of . . .

• Forecast 2008 would be 70% cards (£2.8bn) v actual of . . .

1.902.20

3.00

3.54

4.04

4.49

0.00

1.00

2.00

3.00

4.00

5.00

6.00

2004 2005 2006 2007 2008 2009

£bn

Forecast Growth in Choice-Based Gifts

Total Cards Total Vouchers Total Expon. (Total)

2009 forecast:

£4.5bn

(+10%)


Paper or plastic? C’est rien

• Cards AND vouchers make ‘em happy


But cards are (even more) preferred• 43% prefer cards, v 27% last year - a 60% increase)

• Especially among younger people


Gift cards becoming more popular at Christmas

72% likely(+14%)


And at birthdays . . .

• 5th March 2009 - Pisces


Little difference at Weddings

• Debenhams DVD Wedding List Card


And if you’re thinking Valentines . . . don’t

• Less popular than last year


But from 15th Feb to 13th Feb – go for it!

• Reduction of 50% in number of people disappointed


And if you’re an employer, forget merchandise

• 90% approve of receiving gift card from employer- Compared with 70% in 2007


And for many, you can forget cash

% of people who prefer cards

increased by

50%


New channels are growing rapidly

• Still small, but growing- 2007 = 13%, 2008 = 25%

•Likelihood of using internet has

doubled


And gift card centres growing fastest

1/3rd of buyers

purchase at supermarket

But not in pharmacies,forecourts


Incremental spends are higher

• % of customers spending only card value fallen to 1/3rd


And gift cards increase store visits too

49% of receivers make more visits to the

store


Open loop is present, mall cards on the map


Slight increase in preference for open loop


Givers prefer to give open loop cards


Some intend to buy several open loop cards


Gift cards are catching up with traditional gifts

• Only 20% disagree – half as many as who agree


Design and packaging matters

• Especially if you are a giver

• Less if you are younger

69% Use the

envelopes and packaging

provided with cards


Press is being good to us – for now

• Significantly lower than the US, where 25% heard negative comments in media

February 2009

© Giftex Prepay Ltd



Contact:Dan Horne

M +1 401 499 1250www.giftexprepay.com

[email protected]

Additional comments or questions?

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© Giftex Prepay Ltd, 2009 Strictly private and confidential Independent Intelligence in Prepay Around the World 1 UKGCVA Research Tony Craddock - CEO