Paymentech`s FlexCache Gift Card Transactions Soar 230 Percent in 2003
Jan. 12, 2004
Visit Paymentech at NRF booth # 1849
DALLAS -- Paymentech, a national electronic payment processor, reported that its FlexCache stored value card transactions rose 230 percent from 2002 to 2003, representing the largest jump in volume since the program was adopted in 2000.
"We`re definitely seeing an increased interest from our merchants to adopt a gift card program, and we`re also seeing a trend toward using stored value cards for other purposes, like employee benefits cards and merchandise return cards," said Bill Farris, Strategic Product Manager at Paymentech.
Locations Rose by 80 Percent
Paymentech marked an 80 percent increase in merchant locations that are using FlexCache between 2002 and 2003.
"Consumers love the cards because they`re easier to keep track of than paper gift certificates. Retailers love them because of the increased revenue potential and the improved tracking capabilities. It`s a powerful marketing tool," Farris said.
Dec. 23 Busiest Day for Gift Cards
Gift card popularity remained red-hot during the holiday season, as final tallies reveal that Dec. 23, 2003 was the busiest day of the year for FlexCache users. Paymentech calculated a 215 percent increase for FlexCache transactions on this day, compared to Dec. 23, 2002.
Gift Cards Gaining Popularity as Presents
Overwhelmingly, gift cards continue to be the gift of choice for many consumers, as more than half of all respondents to a consumer survey conducted by Paymentech in October 2003 said they planned to give at least one gift card during the 2003 holiday season.
Farris attributes FlexCache`s popularity to the benefits it presents to retailers and their customers:
-- Plastic beats paper Merchants experience a "dramatic" increase in sales when switching from paper to plastic gift cards.
-- Increased sales On average, 60 percent of gift card customers spend more than the amount of the gift card face amount. Consumers typically spend at least 40 percent more than the card`s original value.
-- Increased store traffic When consumers return to spend any remaining amount on the gift card.
-- Marketing tool Every time the consumer opens a purse or wallet, the consumer sees the gift card artwork, which keeps the retailer top of mind.
-- Easy gift-giving Consumers purchase gift cards as gifts for their "one size fits all" appeal.
For more information about Paymentech`s turnkey gift card and stored value card programs, please visit the Solutions page at www.paymentech.com.
About Paymentech
Paymentech, L.P. processes more payment transactions than any other company in North America and more than half of all Internet transactions for retailers accepting U.S. and international payments via traditional point of sale, Internet, catalog and recurring payments. The privately held company, founded in 1985, is an end-to-end processor for merchants of all sizes and industries. Paymentech`s 1,500 employees office in multiple locations, including the Dallas headquarters; New York; Salem, NH; Tampa, FL; and Tempe, AZ. In 2003, Paymentech and its Canadian affiliate, based in Toronto, processed 5.5 billion transactions and $155 billion in bankcard sales in 14 currencies. For more information, please visit www.paymentech.com.
MEDIA CONTACT:
Laura Lambeth
Paymentech Public Relations
214-849-3523
laura.lambeth@paymentech.com
Back...
