Hispanic Gift Card Use Soars 33 Percent, According to New Comdata(R) Study
, Tenn., Nov 05, 2007 (www.AllPayNews.com) -- Retailers are seeing an increase in both the cash value amount and use of gift cards among Hispanics.
According to Comdata(R) Stored Value Solutions' (CSVS) fifth annual gift card survey, Hispanics received gift cards with the highest average value among all ethnic groups at an average balance of $71, compared to $41 for Caucasians and $60 for African-Americans. The Hispanic total was a 33 percent increase over last year.
The study also revealed that 26 percent of Hispanics surveyed report giving gift cards to children as a budgeting tool or in lieu of an allowance.
"Our survey shows us that Hispanics are enthusiastic consumers of gift cards," said Bob Skiba executive vice president and general managers of CSVS. "Hispanics represent an exciting growth area for retailers."
Survey highlights include:
-- Hispanics are most likely to purchase gift cards for personal use. 40 percent report buying cards for themselves vs. 30 percent of Caucasians and 24 percent of African-Americans.
-- 31 percent report purchasing gift cards at gift card malls, which provide a variety of card options at one location.
-- Hispanics are most likely to spend more than the value on their cards, adding their own money to increase their purchasing power. 69 percent of those surveyed indicate they spend more than the amount of the card, compared to 52 percent of Caucasians and 44 percent of African-Americans.
-- Hispanics are buying cards through several channels: 38 percent from the Internet, 31 percent at gift card malls and 6 percent at charity fundraisers and other events. 90 percent of Hispanics still purchase cards at a specific retailer.
-- Hispanics buy cards with higher initial values and are most likely to reload cards. 40 percent buy for themselves and their children vs. 30 percent of Caucasians and 24 percent of African-Americans.
The survey also indicates that many Hispanics like enhanced features and special packaging.
-- 24 percent prefer cards that also function as a DVD with music.
-- 75 percent appreciate a card that is presented in unusual packaging.
The survey results are based on 800 Internet surveys collected during September 12-18, 2007.
Editor's note: A copy of the survey highlights are available by clicking here or by visiting www.comdata.com.
About Comdata Corporation
Comdata(R) Corporation (www.comdata.com) is redefining the movement of money and information through innovative payment solutions. Comdata provides custom solutions for a wide range of industries such as transportation, retail, government services, aviation, construction, service businesses, restaurants and hospitality. Innovative electronic payment solutions range from credit and debit cards, gift and loyalty cards, fleet, fuel, payroll, purchasing and T&E. As a full-service merchant processor, Comdata's platforms support both its proprietary and branded card networks, as well as card processing for all card types. Headquartered in Brentwood, Tennessee, Comdata employs more than 1,600 people worldwide. Comdata is a wholly owned subsidiary of Minneapolis-based Ceridian Corporation (NYSE: CEN).
Ceridian Corporation is a business services company that helps its customers maximize the power of their people, lower their costs and focus on what they do best. The Company serves businesses and employees in the United States, Canada and Europe. Ceridian is one of the top human resources outsourcing companies in each of its markets, and offers a broad range of human resource services, including payroll, benefits administration, tax compliance, HR information systems and Employee Assistance Program (EAP) and work-life solutions. Through its Comdata subsidiary, Ceridian is a major payment processor and issuer of credit cards, debit cards and stored value cards, primarily for the trucking and retail industries in the United States. www.ceridian.com
SOURCE: Comdata Corporation