20 Sep 2007


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Payzone Gift Card Set to Change UK Gifting


Payzone

Source : Payzone
Payzone, the largest cash acceptance network in Europe, is set to revolutionize the UK gifting market with the launch of the first gift card specifically designed for the UK convenience sector.

The new gift card, which has already signed agreements with Boots, River Island, Goldsmiths, Waterstones, Halfords, Debenhams, JJB and HMV, is expected to go live in the fourth quarter of 2007.

The gift card will be run out of its new Gift Centre division and will be available to merchants over the Payzone network which has 29,000 active terminals in the UK. The gift card will enable consumers to access selected high-street retailers from any store on the Payzone network.

Already popular in the US, gift cards are plastic ‘debit-style’ cards that are rapidly replacing traditional paper-based vouchers as consumers and retailers gain exposure to them.

Gift cards are over 30% cheaper to operate than traditional paper vouchers; are valueless until activated, reducing shrinkage; and produce sales figures that significantly outpace paper-based vouchers.

To date, debit-style gift cards have enjoyed rapid growth in the UK and now rank as the third most popular style of gift purchased by consumers. Gift market experts are expecting UK sales of gift cards to reach £2 billion in 2007.

Working with P&MM, who have a proven track record developing gift cards in the corporate market, Payzone’s bespoke selection of consumer gift cards have been individually designed with a range of different gift occasions in mind.

Consumers will be able to purchase cards designed, wrapped and presented for male or female birthdays, a funky card for the youth market, congratulatory celebrations, births or simple gifts.

Consumers simply choose the relevant gift card design and ‘load’ the card with any cash amount from £15 to £100 at the till. An individual message for the recipient can be written in the accompanying greeting card. This card is then presented and can be redeemed for 12 months at stores within the gift centre agreement – all of which have been selected to represent the broad array of occasions.

By providing access to some of the best known brands, the convenience store retailer can attract added footfall and incremental sales as well as enjoying an attractive percentage deal of the initial value that is loaded onto every card. Moreover, the service can be added to existing Payzone terminals, so no IT upgrades are required.

Paul Charmatz, Deputy Managing Director of Payzone, commented: “The gift card market is just taking off in the UK and this product is specifically crafted for the convenience store market offering a completely new concept for this retail group.”

“We have created a series of cards that access a first rate group of high street retailers designed to cover all the gifting options. Perhaps we have finally seen an end to the traditional last minute present of a bunch of flowers or box of chocolates! Now the Payzone gift card brings high street brands to the doorstep of last minute shoppers and offers convenience stores the chance to capitalise on an explosive market.”

John Sylvester Director at P&MM said “We’re excited about taking a product that successfully works in the corporate incentive sector out to the consumer market. This is a new great opportunity and could transform the gift card market.”

Bernard Grant, Business Services Controller at Debenhams said “This gift card gives Debenhams access to out of town customers. Now every community that has a Payzone terminal also has a Debenhams.”

Paul Bullett, B2B Development Manager Halfords “Gift cards are one of the fastest growing trends in the US retail sector and we think it is important for Halfords to take advantage of consumers’ increasing appetite for gift cards within the UK. This is our first association with gift cards in the consumer market and we are delighted that Payzone customers can ‘think Halfords’ for gift occasions.”

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