Moneris Solutions Corporation

Moneris Solutions Corporation

December 16, 2010 15:21 ET

Small Business Gift Cards a Growing Trend

In January-November 2010, Number of Gift Card Programs Increased by 20 Per Cent; Over One Third of Annual Gift Card Sales Are Made in December

TORONTO, ONTARIO--(Marketwire - Dec. 16, 2010) - Moneris Solutions (Moneris), Canada's largest debit and credit card processor, today announced that Canadian small businesses are embracing gift cards in greater numbers than ever before.

"In the first eleven months of 2010, we have seen a 20 per cent increase in the number of gift card programs that we operate for Canadian small businesses," says Malcolm Fowler, Senior Vice President of Ernex, Moneris' gift and loyalty division. "More and more small businesses are receptive to the idea of offering gift cards to their customers, and those consumers are increasingly more interested in what this option has to offer in terms of convenience and flexibility," said Fowler.

Gift cards continue to be an important tool for Canadian small business merchants, especially during the holiday season – a time when the popularity of gift cards with consumers rises significantly. 1/3 of all gift cards are purchased in December, and over 10 per cent of all gift cards are purchased during the last four days before Christmas day. 

The financial value of these purchases to small business owners is high. According to Moneris research, when Canadian consumers use the entire balance on a gift card, they spend an average of 53 per cent more than the card's value in their purchase transaction. For example, an average gift card of $64 drives almost $98 of store purchases when redeemed.

According to Moneris, gift card programs are growing at a rapid rate, especially in the small and mid-size business markets. Consumer demand for gift cards appears to be expanding as their availability increases. Notably, more merchants are opting for reloadable gift card programs, which provide cardholders with the ability to add value to their cards on an ongoing basis.

"Our predictions for holiday season gift card sales are consistent with our analysis of our 2009 data. Leveraging the gift card program for holiday shopping continues to serve as a successful revenue-generating tool for our small business merchants," added Fowler.

About Moneris Solutions

As one of North America's largest providers of payment processing solutions, Moneris offers credit, debit, wireless and online payment services for merchants in virtually every industry segment and processes more than three billion transactions annually. Through its Ernex division, Moneris offers electronic loyalty and stored-value gift card programs. With more than 350,000 merchant locations, Moneris provides the hardware, software and systems needed to improve business efficiency and manage payments. For more information please visit www.moneris.com.

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