Welcome

Andrew Johnson

Director General

Natasha Toothill

Vice Chairman

Apologies

Leisure Vouchers - Darren Ziff Debenhams - Matt Howe Experience More - Peter Clayton Comet - Danielle Noakes & Jane Shepard Globoforce - James McNeil Tesco - Steve McArdle Hemingways - Andrew Johnson Comdata (SVS) – Adrian Boyt

Welcome – New Members Days of Your Life – Shaun Powell & Vicki Ling

Membership Issuers - 38 Service - 34 Social – 1

73 total

Where are we now?The Gift Voucher & Gift Card

Market Today

Andrew JohnsonDirector General

2007 – The HighlightsFeedback from the members included: Gift Card Centres / Malls are seen as effective channels and are being more effectively managed. M&S Launch Maturing Markets Number of new issuers and brands with cards Consolidation of the gift card market Retailers still perceive cannibalisation risk as being serious Gift Card Centres will help the whole market grow Gift ‘Vouchers’ being replaced by ‘Gift Cards’ Launch of Prepaid Open Loop Cards Launch of new Multi-Retailer B2B Cards New Channel Breakthrough for retailers For some, consumers are not demanding gift cards B2B continue to want Gift Vouchers

2007 – The Lowlights

Negative Press- BBC interview

2007 – The Questions?

Did gift card sales overtake gift voucher sales as forecast in 2005?

Did those companies issuing paper vouchers only see any cannibalisation from gift cards?

What innovations did we see in marketing and merchandising?

Who instigated marketing campaigns to promote gift cards and vouchers as opposed to merchandise?

Not Just Retail Hitting the Headlines

Economics of gift vouchers

By Ruth Alexander More or Less, Radio 4 Gift vouchers might seem like the easiest and safest Christmas present if you're not sure of someone's tastes. But why are they often worth less than their face value?

"It is more blessed to give than to receive," especially when you can exchange hours of pacing up and down the High Street with a quick bulk purchase of gift vouchers.

It's estimated we spend about £3bn a year on gift cards and vouchers in the UK - that's about 1% of everything we spend in the shops.

But the British Retail Consortium says it is thought about a quarter of these vouchers and cards never get redeemed. In terms of actual money spent, about eight per cent is wasted, according to the Vouchers Association.

The News, Christmas 2008

What good things about Gift Cards and Vouchers will be in the news?

What negative press are we in danger of receiving?

Hot Topics 2008

‘Such cards (gift and prepaid cards) are the icing on a more substantial, highly topical cake: the credit crunch.’

‘Prepaid cards in general, contactless payment cards and the new reloadable mobile cards not only signal the ongoing flight from credit, but could herald the beginning of the end of cash’

Michael Poyner, Chief Retail Advisor,

PricewaterhouseCoopers writing in Retail Week

Hot Topics 2008

Cross Border Redemption Clarification of Emoney regulations VAT on Vouchers – harmonisation across Europe The Payment Services Directive The True Benefits of Gift Cards Open Loop v’s Closed Loop Increase competition from new entrants to the market Potentially negative PR Tough year for retail Contactless payments GROWTH IN THE MARKET?

The Prepaid International Forum

Andrew Johnson

Umbrella Association covering whole PrePaid Market Members across Europe Affiliation with the NBPCA in USA Working Groups:

Business models – Rachelle Smith Legal & Regulatory – available Consumer & Education – Andrew Johnson

Updates in Voom! PIF newsletter from VA office – includes profiles of

the Prepaid market in other European Countries More info on PIF website

Working on a standard Code of Conduct for all prepaid products including gift cards

Looking to work this Code of Conduct into The VA Code of Conduct Coordinating industry knowledge on Negative Balances – how prevalent

are they and who is liable – the consumer, the retailer or the issuer? Starting new working group on prepaid card applications in transport Other working groups are Consumer, Business Models, Legal &

Regulatory VA sit on all WG’s, two representatives per group. Vacancies for Legal,

Business Models and Transport – interested?

Negative Balances

Off line transactions Gift cards and prepaid cards go into debit Could this happen on your system? How prevalent? Who is liable – the consumer, the retailer or the

issuer?

Yvonne West

Exec Member

IRI Data & New Sales Figures

What is IRI & IRI Data? Information Resources International (IRI) Confidential data collection agency No members of VA or the secretariat see individual

members data

IRI figures are sales from all Issuers members Split into Corporate / B2B Sales & Over the Counter

Sales Data submitted every quarter

New Data

Current data collected is not reflective of the whole industry

Sub committee formed to make proposal to exec Exec agreed sub committee proposal

Agreed Scope

Breakdown sales figures into: Paper vouchers

£ value of sales

E-vouchers £ value of sales Total units sold

Closed loop gift cards £ value of sales Total units sold

Restricted loop gift cards £ value of sales Total units sold

Open loop gift cards £ value of sales Total units sold

Collate sales channel data: Consumer sales

Direct sales On line Gift card centre Third party

B2B sales Direct sales On line

Out of Scope

Redemption informationBreakageUp-spendCustomer dataPaper volumes/average

Currently IRI provide graphs on data140,0

00

455,0

00

124,0

00

128,0

00

145,0

00

470,0

00

135,0

00

135,0

00

146,0

00

480,0

00

140,0

00

145,0

00

100,0

00

280,0

00

82,0

00

84,0

00

100,0

00

300,0

00

90,0

00

90,0

00

310,0

00

95,0

00

96,5

00

240,0

00

735,0

00

206,0

00

212,0

00

245,0

00

770,0

00

225,0

00

225,0

00

244,0

00

790,0

00

235,0

00

241,5

00

98,0

00

Q3 2003 Q4 2003 Q1 2004 Q2 2004 Q3 2004 Q4 2004 Q1 2005 Q2 2005 Q3 2005 Q4 2005 Q1 2006 Q2 2006

STORE

CORP

TOTAL

847,0

00

885,0

00

911,0

00

546,0

00

580,0

00

599,5

00

1,3

93,0

00

1,4

65,0

00

1,5

10,5

00

Q3 2003 to Q2 2004 Q3 2004 to Q2 2005 Q3 2005 to Q2 2006

STORE

CORP

TOTAL

19.0

12.0

5.4

9.1

6.9

2.0

8.2

5.8

1.33.0

3.7

7.4

22.0

2.0

-3.1-1.4

6.17.2

8.8

11.0

-0.6

6.55.6

7.2

20

8

1.9

4.5

6.5

4

8.5 7.9

0.5

4.7 4.4

7.3

Q3-03/Q3-

02

Q4-03/Q4-

02

Q1-04/Q1-

03

Q2-04/Q2-

03

Q3-04/Q3-

03

Q4-04/Q4-

03

Q1-05/Q1-

04

Q2-05/Q2-

04

Q3-05/Q3-

04

Q4-05/Q4-

04

Q1-06/Q1-

05

Q2-06/Q2-

05

STORE

CORP

TOTAL

Total Category Size Total Category Size

Year On Year Growth of Total Market, by

Category Quarter This Year Vs Quarter Last Year

Q1/0615.4%

Q3/0516.0%

Q4/0552.7%

Q2/0615.9%

Q1/0615.8%

Q3/0516.3%

Q4/0551.8%

Q2/0616.1%

B 2 C B 2 B

Category Seasonality: Quarter 3, 2005 - Quarter 2, 2006

New Format

IRI will not manipulate data to provide graphs

Data submitted on excel sheetData issued back to members on

excel sheet

All members to be categorised

Split members into following categories:

RetailLeisureAgency / Multi-retail

Submit data via spreadsheet

Get back 3 reports

New Format

Flexible format of dataCompare your sales to 1. total sales,

2. your category salesNot all columns will be completed

Next Steps

All members asked to submit new format of data for whole of 2007

Those members who contribute to the detailed report will be asked to contribute old style data for Q4 2007

Requests for data from next week Data back to you by week 2 March

The VA Conference 2008

The VA Conference 2008Date: Tuesday 22nd April 2008Venue: Marriott, Grosvenor Square, London All day conference followed by networking supper &

Café Jazz Mini exhibition running alongside conference Special rates for VA members

Press Partnerships

Promotions & Incentives Leading motivation and incentives title in business to

business sector

Customer Management Leading magazine in the call centre market

Retail Systems Publication for IT decision makers in retail

Agenda The Retail Landscape The Gift Voucher & Gift Card Market Today What is Prepaid and am I in it?

Overview of prepaid Practical Applications of prepaid cards

Transport General Purpose Spending Cards Product Specific Cards Corporate Benefit Cards Foreign Exchange & Money Transfer

Legal & Regulatory Issues Focus on the Customer not the Technology

Gift Cards – Not Just for Traditional Retailers? Developing Sustainable Sales & Marketing Strategies

Selling in store Selling on line Selling on a gift card centre Selling to the corporate market

Speakers Marilyn Bochicchio, President Paybefore & former President NBPCA

(USA) Jamie King – IDT Fiance David Tymms – EROS card Simon Barnett – PizzaExpress Keith Brand – Tefisto Chris Grace – Coinstar Tim Bishop – lastminute.com Tony Craddock – Giftex Prepay

Full agenda at www.the-va.co.uk

Delegate RatesMembers 1 place 2 places 3 places +

Conference Only

£310 £285 £260

Conference & Supper

£360 £335 £310

Non-Members

Conference Only

£365 £310

Conference & Supper

£415 £360

All prices are plus VAT and are quoted per person

Calendar of Events

Rachelle Smith

Exec Member

VA Calendar

Attendance at Social Events

Event 2007 2008

Bowling* 78

Windsor Races

77 ?

Vinopolis Wine Tasting

66

*Bowling may have encouraged more people rather then more companies*Bowling may have encouraged more people rather then more companies

Social Function Idea?

Feedback from meeting Liked the fun feel of the bowling event Would like events to be cheaper so that more

people per company can come Suggestions for a VA Supper Club? email your ideas to sarah@the-va.co.uk

Any Other Business?

PCI Compliance / auditing prepaid debit cards

Please let Sarah / Andrew know if you have any advice on software solutions for this problem.

Ccf magazine supplement – October 2008