First Data Releases Overview Of SpendTrend Closed-Loop Prepaid Cards First Quarter 2011 Analyses

Weather Delays Post-Holiday Redemptions While Incentives Drive Increased Activations

First Data Corporation, a global leader in electronic commerce and payment processing, recently released an overview of its First Data SpendTrend Closed-Loop Prepaid Cards analyses for the first quarter of 2011. The analysis tracks year-over-year same-merchant activations, redemptions and reloads of merchant-branded prepaid cards in the U.S., including spending, gift, incentive and promotional cards.

In January, year-over-year activations surged as merchants enticed consumers with gift card incentives. Post-holiday redemption rates slowed, likely due to a succession of winter storms across the country. Redemptions rebounded with double-digit growth in February as consumers took advantage of milder weather to seek out seasonal bargains. March overall dollar volume growth of activations, redemptions and reloads posted strong double-digit increases.

Specialty Retailers drove strong activation growth in January and March. In January, these retailers offered gift card incentives attached to the purchase of a particular product. Increased gift card activity at Electronics & Appliance stores as well as usage of online and mobile gift cards drove an increase in dollar volume and average tickets at Specialty Retailers in March.

During the first quarter QSRs continued to propel much of the growth in transaction and dollar volume of reloads. Specialty Retail and Casual Dining saw a double-digit growth in average ticket size of reloads.

"Gift cards continue to grow as a favored of payment form among consumers. Redemption and reloads have shown strong, steady growth during the first three months of 2011," said Silvio Tavares, SVP and division manager of First Data Information and Analytics Solutions.

The SpendTrend Closed-Loop Prepaid Cards analysis is part of First Data's suite of SpendTrend analytics solutions. For more information about First Data SpendTrend, visit www.firstdata.com/infoanalytics.

Around the world, every second of every day, First Data makes payment transactions secure, fast and easy for merchants, financial institutions and their customers. First Data leverages its vast product portfolio and expertise to drive customer revenue and profitability. Whether the choice of payment is by debit or credit card, gift card, check or mobile phone, online or at the checkout counter, First Data takes every opportunity to go beyond the transaction.

SOURCE: First Data Corporation