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not only a potential growth engine • Integrates with the POS systems they operate (selected by 60 percent)
for small business owners, they have
become increasingly popular among • Builds loyalty (53 percent)
consumers."
• Increases sales (50 percent)
The survey, commissioned earlier • Encourages spending beyond card value (49 percent)
this year by First Data Corp., which
has since been acquired by Fiserv, • Attracts new customers (47 percent)
queried nearly 1,100 consumers and
628 individuals who either own or • Advertises my business (42 percent)
manage small businesses. Among
consumers surveyed, 74 percent said Another plus that apparently wasn't broached by First Data, is that gift card
they regularly purchase gift cards sales generate upfront cash for businesses. Clearly, gift card programs are a
from small businesses. The three booming market opportunity for businesses large and small, and for the ISOs
types of gift cards consumers said they and merchant level salespeople selling these programs.
most preferred to purchase or receive
were casual dining restaurants, Patti Murphy is senior editor at The Green Sheet and president of ProScribes Inc. Follow her on
coffee shops and specialty shops (like Twitter @GS_PayMaven.
nail and hair salons).

The survey also found that while
digital gift cards are gaining favor,
physical gift cards remain the most
preferred format, with 60 percent of
consumers indicating they prefer gift
cards they can carry with them rather
than digital versions. One of the most
striking findings reported by Fiserv
is that 90 percent of consumers who
receive gift cards for a small business
they haven't shopped at said they
would shop at those businesses and
return after using their gift cards.
And gift cards don't have to be for a lot
of money to get consumers shopping.
Nearly four out of five consumers
surveyed said that if they had a store
gift card valued at just 88 cents they'd
visit that store to redeem it.
Better than half the consumers
surveyed (56 percent) said they join
frequent shopper programs at small
businesses, and that gift cards are
their preferred way to have their
loyalty rewarded.
When small business owners were
asked what they wanted from a gift
card program, one out of three said
they were looking for simplicity.

Business owners also were asked
to identify the top ways gift card
programs can help boost business.
The top six vote getters were:

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