Gift giving has not lost its popularity in these modern times where distant single living, busy family lifestyles and the cost of living seems to be gaining momentum. That said one often wonders how to go about finding the right gift while saving time and reducing costs.

At one time gift card giving seemed the perfect solution. While many like getting an occasional gift card to their favorite store or restaurant, other lament that such cards are impersonal, commercial and devoid of forethought.

An online business-marketing network focused on online sales and marketing notes a growing demand for gift cards among users of the Internet. To that end Fimark.net sees significant growth in store issued and prepaid gift card sales over the next 3 years.

Where store issued gift cards have made little impact, prepaid debit gift cards seem to be making up. Its many applications include business-to-business gift giving, giving to the "un-banked," teens and students. In addition prepaid gift card are used for product promotional campaigns and marketing such as surveys. Others are offering the card for shopping sprees and for secret shoppers. Parents are using it as a way to teach budget balancing and frugality. It has proved a useful tool for corporate and household reward systems.

Prepaid gift cards are actually stored value cards. The concept entered the market in the late 1990s and is gaining momentum. Stored value cards were used as a means of employee payment in the form of payroll cards. In time stored value processors leveraged their stored value platform to develop other commercial applications, such as corporate incentive cards, employee expense cards, etc. The core providers of prepaid gift cards are traditional credit card processors who are opting to leverage their existing client base via the banking industry.

How popular are stored value card in the consumer banking sector? Of 20 banks surveyed in 2003 by the Philadelphia technology consulting and systems firm Unisys Corp., half said they were interested in issuing stored value cards themselves. And a number have dabbled in the market, including Bank of America Corp., Citigroup Inc., and JP Morgan Chase & Co.

According to IDC Financial Insights, the stored value/prepaid card will be used to purchase $290 billion of goods and services annually by 2006. With $160 billion spent on prepaid cards in 2004 and a market opportunity of likely more than a trillion within the next decade.

Regulatory issues in the US have not stopped the rapid growth of demand for this product. Branded gift cards those featuring the Visa, MasterCard or Discover Card are widely accepted in most stores throughout the US, including those online. Like the credit card or bank debit card the flexibility and personalized nature of a Visa or MasterCard gift card make it a well used purchasing tool anywhere that major credit debit cards are accepted.

"This alone is what makes it an ideal gift", says Mark Askew, founder of www.greetingcards.fimark.net. To that end the site offers a personalized greeting card with gift card insert. Gift cards have overtaken cash and paper gift certificates in terms of preference for half the US population two-thirds of the population have bought or received one Mark says. The Federal Reserve Bank roughly estimates some 7 million Visa or MasterCard-branded stored value cards are in circulation.

According to the fourth annual Consumer Insights Survey, commissioned by First Data company ValueLink, 52% of American consumers surveyed would prefer to give an electronic gift or spending card; 38% favored cash and 11% gift certificates. Now Internet users can order prepaid gift cards online. Online ordering save time, gas, mileage, lessens shopping and traffic incidents and yes, actually helps the environment. From the foregoing prepaid gift card giving seems to be growing into the more popular recipient pleaser.

Mark Askew is founder of Fimarks Family Business Network at Fimark.net, a site dedicated to the rewarding and enriching task of finding time and cost saving family activities and family oriented home based businesses.