"The international gift card market is about where the U.S. marketplace was five years ago, with one exception: they have the advantage of learning from the 'best practices' SVS developed in implementing gift card programs over the past nine years in North America," Tom Recktenwald, SVS International's executive vice president and general manager, said.
“Retailers in other countries are now quickly turning from paper gift certificates to electronic cards and are attracted to the simpler, more cost-effective magnetic-stripe card technology over current procedures, just as retailers have in North America”
SVS and Recktenwald were pioneers in the launching of gift cards in the U.S. almost a decade ago. Now he is applying that experience successfully for SVS in the international market.
"Retailers in other countries are now quickly turning from paper gift certificates to electronic cards and are attracted to the simpler, more cost-effective magnetic-stripe card technology over current procedures, just as retailers have in North America," Recktenwald said.
During the last Christmas holiday season, U.K fashion retailer d2 kicked off an SVS gift card program marking the first holiday season d2 was not dependent on a paper-based gift certificate program.
"During our six-week peak Christmas season, our gift card sales increased 220 percent over the previous year," said Richard Clark, d2 finance director. "Additionally, gift card operational overheads were slashed, for another huge benefit to our business."
These developing overseas business opportunities have uncovered some interesting opportunities and ironies. For instance, thanks to the proliferation of wireless technology in South Africa, SVS can process some South African gift card transactions faster than it can process similar ones from retailers in the domestic U.S. According to Recktenwald, a South African transaction can get to, and through, SVS' Louisville data processing center faster (by a few seconds) than a U.S. retailer just across the street utilizing dial technology.
And then there is the challenge of servicing retailers in the languages and time zones clients require, both for reports and for any direct human interface such as customer service calls.
"We've been working diligently to ensure our infrastructure will support the international market place efficiently and effectively," Recktenwald said. "Our current commitments require SVS to support retailers operating in 35 countries, 26 languages and 20 currencies within the next 12 months. It's an exciting time for us."
SVS International presently counts among its international customers H&M, d2, Shoppers Drug Mart, W.H. Smith and all:sports.
About Stored Value Systems
Since introducing the first-ever magnetic-striped retail gift card to shoppers in 1995, Stored Value Systems, Inc. (SVS) is one of the world's leading providers of electronic gift cards and other card-based transaction programs. International retailers rely on SVS to create customer loyalty, increase sales and strengthen their competitive position in the retailer marketplace. Headquartered in the United States, SVS is a wholly owned subsidiary of Comdata(R) Corporation. For more information, visit www.storedvalue.com.
About Comdata Corporation
Comdata(R) Corporation (www.comdata.com) is a leading business-to-business issuer and processor of payment cards, primarily in the retail and transportation industries. Comdata's range of products and services include fleet, fuel, purchasing, T&E, payroll/reimbursement, EBT, gift and loyalty cards and processing. A full-service merchant processor, Comdata's platforms support both its proprietary card networks as well as processing for any card tender a merchant may accept. Headquartered in Brentwood, Tenn., Comdata employs more than 1,500 people nationally and internationally. Comdata is a wholly owned subsidiary of Minneapolis-based Ceridian Corporation (NYSE: CEN).
About Ceridian
Ceridian Corporation (NYSE: CEN) is an information services company serving businesses and employees in the United States, Canada and Europe. Ceridian is one of the top human resources outsourcing companies in each of its markets, and offers a broad range of human resource services, including payroll, benefits administration, tax compliance, HR information systems and employee advisory programs. Through its Comdata subsidiary, Ceridian is a major payment processor and issuer of credit cards, debit cards and stored value cards, primarily for the trucking and retail industries in the United States. www.ceridian.com
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