The Digital Gift Card Market Size was estimated at 232.03 (USD Billion) in 2022. The Digital Gift Card Market Industry is expected to grow from 269.25(USD Billion) in 2023 to 1,027.5 (USD Billion) by 2032. The Digital Gift Card Market CAGR (growth rate) is expected to be around 16.04% during the forecast period (2024 - 2032).
The global digital gift card market is experiencing rapid growth driven by the increasing popularity of e-commerce and the convenience and flexibility offered by digital gift cards. Key market drivers include the rising adoption of mobile devices, the growing popularity of online shopping, and the increasing number of businesses offering digital gift cards. Opportunities to be explored include the development of new technologies such as blockchain and AI to enhance the security and convenience of digital gift cards, the expansion of digital gift cards into new markets such as developing countries, and the increasing use of digital gift cards for corporate gifting. Recent trends in the digital gift card market include the emergence of personalized digital gift cards, the increasing use of digital gift cards for subscription services, and the growing popularity of digital gift cards as rewards and incentives.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The increasing adoption of digital payments and the convenience of online shopping are driving the growth of the Global Digital Gift Card Market Industry. Consumers are increasingly shifting towards digital gift cards as they offer a seamless and secure way to make purchases. The rise of e-commerce and the proliferation of mobile devices have further accelerated the adoption of digital gift cards, making them a preferred choice for both personal and corporate gifting. Additionally, the growing popularity of subscription-based services and digital content has contributed to the demand for digital gift cards, as they provide a convenient way to purchase these services without the need for physical gift cards.
The new reality caused by the rapid growth of e-commerce and online marketplaces has provided a significant opportunity for the Global Digital Gift Card Market Industry. Online marketplaces offer an extensive range of digital gift cards from various retailers – consumers can readily find the right gift for any occasion. Convenient to buy and use, digital gift cards have rapidly become the norm. Meanwhile, personalized recommendations that online marketplaces provide combined with loyalty programs make the gifting even more agreeable.
The increasing adoption of corporate gifting is one of the prime factors propelling the growth of the Global Digital Gift Card Market. Businesses use digital gift cards as a simple and efficient means to incentivize the employees, reward achievements, and maintain strong relationships with customers. The Overall Market, owing to the vast acceptance and popularity of the digital gift cards which offer greater choice, can be seen as part of the Industry in North America. This type of gift makes it easy and convenient to select and purchase the gift and deliver it to the right person.
The distribution channel segment of the Global Digital Gift Card Market is vital or important in connecting merchants and consumers. The segment encompasses two main channels, that is, online and offline. Online Digital Gift Card Distribution Channel Relatively, the online distribution channel has grown considerably or substantially over the past few years. In 2023, the Global Digital Gift Card Market revenue generated through online channels or platforms covered about 65% of the total market share of the entire period. The dominance of the online channel is linked to the convenience that online internet marketplaces offer their users.
Moreover, the availability of e-commerce-based online platforms in the current or modern world has played a significant or substantial role in enhancing the accessibility of this distribution channel. Nonetheless, the scalability of large e-commerce platforms like Amazon is the major feature that makes the availability issue less likely. Furthermore, through online gift card retailers, the consumer base for this distribution channel can access an extensive range or variety of gift cards. For example, they can purchase an ample number of cards from multiple merchants within seconds or minutes by simply browsing the suitable e-commerce website.
Therefore, the diversity available on online platforms allows the consumer base to select the perfect card for their friend in accordance with the event and his or her preferences. Offline Digital Gift Card Distribution Channel Additionally, the offline channel still accounts for a significant share of the Global Digital Gift Card Market. In 2023, the Global Digital Gift Card Market revenue obtained through offline channels ranged about 35% of the total revenue for the corresponding period. The aversion to shopping or purchasing items online or via the internet by some fraction of the consumer base is the main reason why the offline distribution channel is still viable.
Moreover, the convenience of receiving the gift card directly or nearly immediately following the order is another reason. Finally, some people opt to visit stores or retail outlets in person in order to obtain valuable or experienced advice from the store attendants on what to purchase. In so doing, the consumer base is assured of obtaining the perfect gift for their friends. Nonetheless, the major drawback of this distribution channel is its limited range of products. It is not possible for a store or outlet to have all the possible products for the consumer base to select the best. Therefore, this results in the relatively high average cost of the limited number of goods available.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Segmentation by Card Type Card Type sub-segment includes Closed Loop and Open Loop. The first one held the dominant position in the Global Digital Gift Card Market in 2023, and its share of revenue exceeded 60%. This high result is primarily associated with the massive uptake of closed-loop gift cards among retailers and businesses for increasing customer loyalty, reducing fraud, and ease of use. The rapid expansion of e-commerce has also intensified the demand for closed-loop digital gift cards that customers can order, receive, and redeem online more conveniently.
At the same time, the Open Loop sub-segment is likely to gain enormous traction in the coming years, fueled by the mushrooming popularity of multi-brand and multi-store gift cards. This type of card gives buyers a broader choice of outlets where they can redeem their certificate, and the diversification of categories attracts more customers. During the forecast period, the Open Loop sub-segment is expected to grow at a CAGR of 17.5%, which is a faster rate compared to the overall Global Digital Gift Card Market expansion.
The Global Digital Gift Card Market is segmented by Application into Retail, Food Beverage, and Travel Entertainment. The Retail segment held the largest market share in 2023, accounting for over 50% of the global market. The Food Beverage segment is expected to grow at the highest CAGR of 18.5% during the forecast period 2023-2032. The Travel Entertainment segment is expected to reach a market value of USD 150 billion by 2032. The growth of the Digital Gift Card Market is attributed to the increasing popularity of online shopping, the convenience of digital gift cards, and the growing adoption of mobile wallets.
In terms of redemption method, the global digital gift card market is segmented into in-store, online, and both. Among these, the in-store segment held the largest market share in 2023 and is projected to continue its dominance throughout the forecast period. This is primarily attributed to the convenience and ease of use offered by in-store redemption, as customers can simply present their digital gift card at the checkout counter to complete their purchase. However, the online segment is expected to witness the highest growth rate during the forecast period, owing to the increasing popularity of e-commerce and the growing adoption of digital payment methods.
Additionally, the 'Both' segment is gaining traction as it offers customers the flexibility to redeem their digital gift cards both in-store and online, providing them with a seamless shopping experience.
Fixed value digital gift cards have a predetermined amount loaded onto them, while variable value digital gift cards allow the recipient to choose the amount they want to spend. Fixed value digital gift cards are more popular for smaller purchases, such as buying a cup of coffee or a book, while variable value digital gift cards are more popular for larger purchases, such as buying a new gadget or a piece of furniture. Overall, the fixed value segment held the largest share in the Global Digital Gift Card Market in 2023, accounting for over 60% of the market revenue.
The variable value segment is expected to grow at a faster rate over the forecast period, owing to the increasing popularity of online shopping and the convenience of being able to choose the amount you want to spend.
The regional segmentation of the Global Digital Gift Card Market offers valuable insights into the market's performance across different regions. North America emerged as a dominant player in 2023, accounting for a significant share of the global revenue. The region's robust e-commerce landscape, high disposable income, and increasing adoption of digital payment methods have contributed to its market leadership. Europe follows closely behind, driven by a large and tech-savvy population, as well as the presence of major digital gift card providers.
The Asia-Pacific (APAC) region is expected to witness substantial growth in the coming years, owing to the rising middle class, growing internet penetration, and increasing smartphone usage. South America and the Middle East and Africa (MEA) regions also hold promising growth potential, as they present opportunities for digital gift card providers to penetrate untapped markets and cater to the growing demand for convenient and flexible gifting solutions.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Major players in Digital Gift Card Market industry are constantly seeking new ways to innovate and expand their offerings. Leading Digital Gift Card Market players are investing heavily in research and development to create new and improved products and services. The Digital Gift Card Market development is being driven by the increasing popularity of digital gifting and the growing adoption of mobile devices. The Digital Gift Card Market Competitive Landscape is expected to remain highly competitive in the coming years, with new entrants and established players vying for market share. To stay ahead of the competition, companies are focusing on developing innovative products and services, expanding their distribution channels, and forming strategic partnerships.
One of the leading companies in the Digital Gift Card Market is Amazon.com, Inc. Amazon offers a wide range of digital gift cards for its own products and services, as well as for a variety of third-party retailers. Amazon's digital gift cards are easy to purchase and redeem, and they can be used on multiple devices. Amazon is also expanding its digital gift card offerings through partnerships with other companies, such as Starbucks and Uber.
A major competitor in the Digital Gift Card Market is Apple Inc. Apple offers a variety of digital gift cards for its own products and services, including iTunes, App Store, and Apple Music. Apple's digital gift cards are also easy to purchase and redeem, and they can be used on multiple devices. Apple is expanding its digital gift card offerings through partnerships with other companies, such as Nike and Target.
Starbucks
iTunes Gifting
Blackhawk Network
Target
Visa Gift Card
Vanilla Gift
Netspend
Google Play
Incomm
Cash Star
H
Stage Stores
Walmart
Apple iTunes
Amazon
The global digital gift card market is projected to reach USD 1,027.5 billion by 2032, growing at a CAGR of 16.04% from 2024 to 2032, driven by the increasing adoption of digital payments and the growing popularity of online shopping. The market is expected to witness significant growth in the Asia-Pacific region, owing to the increasing penetration of smartphones and the rise of e-commerce in the region. Key players in the market include Amazon, Apple, Google, and Starbucks. Recent news developments include the launch of new digital gift card platforms, such as Gyft and Tango Card, and the integration of digital gift cards with mobile wallets, such as Apple Pay and Google Pay.
Online
Offline
Closed Loop
Open Loop
Retail
Food Beverage
Travel Entertainment
In-Store
Online
Both
Fixed Value
Variable Value
North America
Europe
South America
Asia Pacific
Middle East and Africa
| Report Attribute/Metric | Details |
| Market Size 2022 | 232.03(USD Billion) |
| Market Size 2023 | 269.25(USD Billion) |
| Market Size 2032 | 1027.5(USD Billion) |
| Compound Annual Growth Rate (CAGR) | 16.04% (2024 - 2032) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year | 2023 |
| Market Forecast Period | 2024 - 2032 |
| Historical Data | 2019 - 2023 |
| Market Forecast Units | USD Billion |
| Key Companies Profiled | Starbucks, iTunes Gifting, Blackhawk Network, Target, Visa Gift Card, Vanilla Gift, Netspend, Google Play, Incomm, Cash Star, H, Stage Stores, Walmart, Apple iTunes, Amazon |
| Segments Covered | Distribution Channel, Card Type, Application, Redemption Method, Value, Regional |
| Key Market Opportunities | Ecommerce expansion Mobile wallet integration Corporate gifting Personalization Crossborder gifting |
| Key Market Dynamics | Rising Demand for Convenience Growing Ecommerce Penetration Increased Adoption of Mobile Payments Popularity of Social Gifting Digital Innovation |
| Countries Covered | North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The global digital gift card market is projected to be worth USD 269.25 billion in 2023.
The global digital gift card market is projected to grow at a CAGR of 16.04% from 2023 to 2032.
North America is expected to have the largest market share in the global digital gift card market in 2023.
Digital gift cards can be used for a variety of applications, including retail, dining, travel, and entertainment.
Key competitors in the global digital gift card market include Amazon, Apple, Google, and Starbucks.
Key trends driving the growth of the global digital gift card market include the increasing popularity of online shopping, the growing adoption of mobile devices, and the increasing popularity of digital gift cards as a way to give gifts.
Challenges facing the growth of the global digital gift card market include concerns about security and fraud, the lack of interoperability between different digital gift card platforms, and the high cost of digital gift cards.
The global digital gift card market is projected to be worth USD 1027.5 billion in 2032.
The global digital gift card market is projected to grow at a CAGR of 16.04% from 2023 to 2032.
North America is expected to have the largest market share in the global digital gift card market in 2032.
Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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