21 September 2006
gift cards to account for €1Billion of Irish retail spend
euroConex and Card Commerce announced a partnership agreement today which will see Card Commerce’s PayPlus OnDemand gift card service made available to euroConex’s network of merchants across Europe. The system will initially be available through Bank of Ireland and Alliance & Leicester Commercial Bank, euroConex’s partner banks in Ireland and the UK, before being rolled out into the broader European network in 2007. Sasha, the nationwide fashion retailer with 47 stores around Ireland will be one of the first retailers to launch a gift card programme on the euroConex/Card Commerce platform.
A plastic card based alternative to traditional paper vouchers, gift card schemes have proven to increase the value of customers retail spend by up to 20% and, in the US, make up 5% of total retail spend. euroConex and Card Commerce believe that the roll out of this system in 2006 will result in gift cards accounting for €1 billion of retail spend over the next five years.
The deployment of PayPlus OnDemand will allow merchants using euroConex point of sale card terminals through their banking partner, to sell and redeem gift cards and other types of prepaid debit card such as returns cards or savings cards.
euroConex is currently the leading provider of card payment solutions in Ireland. In addition to the retail sector, euroConex’s network includes the hotel, restaurant, petrol and tourism sectors.
Currently, in Ireland, gift cards only account for 1% of total spend however, this figure is expected to grow quickly in 2006. In addition to increased sales when compared to paper vouchers, gift cards also allow retailers to cut costs in the areas of loss through fraud, secure distribution and reconciliation.
Today’s announcement means that all retailers, from large multi-national retailers to small single outlet stores, can enjoy the benefits and increased sales of having their own unique gift card system.
Card Commerce is the Dublin-based international provider of prepaid debit solutions who installed Eason’s hugely successful gift card scheme in late 2004. The company’s Marketing Director, Scott McInnes said today, “The gift card market in the US has really taken off in the past ten years and accounted for $60bn of total retail spend last year. In Ireland and the rest of Europe, the demand has been a lot slower, however a 400 per cent growth in the number of gift card programs in Europe is predicted in the next year.
“The fact that Europe has been slower to respond is not down to consumers, but rather that gift card schemes, up until now, have been costly to install and to manage and, as a result, were only available to the largest retailers. However by making PayPlus OnDemand available over euroConex’s merchant network, and by offering a standard, ‘gift card-in-a-box’ package of point-of-sale merchandising and cards, every retailer from the smallest shop to the largest retail chain will be able to offer a complete gift card service to their customers and avail of the same benefits”.
“euroConex recognises the growing opportunities in the gift card and prepaid debit card markets” said Louis Carron, Sales Director Ireland, euroConex. “The Card Commerce relationship will enhance euroConex’s extensive portfolio of payment and value added solutions, increasing our competitiveness in this rapidly changing market.”
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About Card Commerce
Card Commerce is a leading provider of solutions and services that allow retailers to harness the benefits of gift card and other types of prepaid debit card. Founded in 2004, Card Commerce is a privately owned company based in Dublin, Ireland. For further information, please visit www.card-commerce.com.
About euroConex
euroConex is the European affiliate of NOVA Information Systems and a wholly owned subsidiary of US Bancorp. The company provides an integrated payments processing service to financial institutions and merchants in more than 30 European countries using a multi-currency platform. In addition to Point of Sale, International Point of Sale and eCommerce solutions, euroConex also provides a range of specialist multi-currency products including Dynamic Currency Conversion (DCC). For more information visit www.euroconex.com.
For further information please contact:
| Eoin Whyte Business Development Director ewhyte@card-commerce.com 0870 735 2829 (UK) |
Karen McConville Marketing Executive kmcconville@card-commerce.com 0870 735 2829 (UK) |