UK market research shows gift cards taking off in 2008 - cards now have 76% awareness, and 60% of UK adults purchased in the past year

Here's the latest news from VRL and the British Market Research Bureau on the UK gift card market.

Obviously, we're very pleased with the data. Gift cards are taking the UK by storm. Why? Because they're the perfect present every time! Why run up and down the high street in a desperate and time-consuming search for a gift, when what they really, REALLY want is a gift card? Gift cards let your friends, family or co-workers get the gift they really want. Make their day - give them a gift card.

London, Oct. 2, 2008 -- Research commissioned by thought-leading modern media publishing company, VRL KnowledgeBank, reveals groundbreaking consumer research suggesting that gift cards will be the present of the future.

Nearly 60 percent of respondents have purchased a gift card for someone within the last year, with 30 percent of these occurring in the last six months, reinforcing the likelihood of Christmas stockings being packed with cards. This research is the first of its kind and offers a unique insight into the buying behaviour of over 3,000 consumers and their overall awareness of this fast growing market. The consumer omnibus research entitled: UK Prepaid Cards -- Usage and Awareness was conducted online by British Market Research Bureau (BMRB) between 24th July and 10th August 2008.

Key facts include:

• 76 percent of people are aware of gift cards
• Respondents that had received them were twice as likely to buy one, either for themselves or as a gift
• Over 50 percent that had used a prepaid card were likely to reload this card, especially if they had purchased prepaid cards within the last six months
• Nearly twice as many men as women and this figure is more concentrated on the younger generation (16-34 year old age group) rather than older people (45-64 age group) which was significantly lower at 7--8 percent.
• Nearly 50 percent of consumers use prepaid cards for Internet purchases, demonstrating that security is front-of-mind where online shopping is concerned.
• Other uses focused on helping consumers to budget, spending or transferring money abroad and many parents were buying teen or youth cards for their children.
• Costs for cards do not appear to be a barrier - in fact just under half of the respondents believe there are no costs or less than GBP1 in fees per month attached to prepaid cards.

In other geographies such as the US, the prepaid market has really exploded and there are entire shops dedicated to prepaid gift cards with shoppers visiting these outlets to purchase their friends and relatives favourite brands. The first of its type, VRL's research reveals that the UK market looks set to move in this direction.

Source: Company press release.