Consumer Payment Card News

Gift Cards

A new report says holiday season sales of gift cards jumped from $17.34 billion in 2004 to approximately $18.48 billion in 2005. The study also says the overall U.S. gift card market has grown into an annual $35.3 billion industry. The “U.S. Prepaid and Gift Card Market” from Packaged Facts also projects the popularity of gift cards across generations will continue to drive card sales upwards of 5% annually to surpass the $47 billion mark by 2010. However, the report notes that dormancy fees, the devaluing of cards over time and customer awareness of hidden fees attached to bank gift cards are issues that need to be overcome in order to assure continued consumer trust and satisfaction in this wide open market.

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|_2. U.S. GIFT CARD MARKET |
|_. 2005:| $35.3 billion |
|_. 2006:| $37.8 billion |
|_. 2007:| $39.6 billion |
|_. 2008:| $41.5 billion |
|_. 2009:| $43.1 billion |
|_. 2010:| $47.0 billion |
|_2. Source: Packaged Facts |

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