News from the Wire

First Data SpendTrend shows economy impacts average prepaid ticket

Monday, July 18, 2011 — 11:29:12 (EDT)

Atlanta, July 18, 2011 -- First Data Corporation, a global leader in electronic commerce and payment processing, today released an overview of its First Data SpendTrend® Closed-Loop Prepaid Cards analyses for the second 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.

Economic trends played a significant role in consumer behavior during the second quarter. April saw the overall year-over-year dollar volume growth of gift card activations, redemptions and reload slow after the majority of holiday cards were redeemed during the first quarter. Dollar-volume of activations, redemptions and reloads rebounded during the May and June Mother’s Day, Father’s Day and graduation gift-giving season.

Average ticket growth in activations and redemptions grew in April, due in part to rising prices. Activation average ticket growth moderated in May and June as consumers responded to continued high unemployment and negative economic news.

In May, casual dining, specialty retailers and QSRs all reported increased dollar volume and transaction growth in activations over the previous month. Casual dining merchants continued the surge in June, driving the increase in overall dollar volume and transaction.

"We continued to see positive dollar volume growth of activations, redemptions and reloads throughout the second quarter, said Silvio Tavares, SVP and division manager of First Data Global Information and Analytics Solutions. “While the economy's effect on consumer spending has impacted gift cards, they remain a popular payment choice among consumers.” Year-Over-Year-Over-Year Gift Card Dollar Volume Growth

April 2011

Activations +4.1% Redemptions +6.4% Reloads +20.0%

May 2011

Activations +8.4% Redemptions +14.5% Reloads +27.8%

June 2011

Activations + 13.7% Redemptions +15.0% Reloads +27.5%

Note: All transactions are total year-over-year activity

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 or call SpendTrend Customer Care at 800-430-0169.

To participate in the SpendTrend conversation, please follow First Data at twitter.com/FirstData and join us at www.facebook.com/FirstData

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.

First Data SpendTrend Closed- Loop Prepaid Cards is based on total year-over-year activity and does not represent First Data’s financial performance. “Closed-Loop Prepaid Card” refers to merchant-branded spending/gift cards, incentive and promotional cards.

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Source: Company press release.