Gift Cards Market Trends

Global Gift Cards Market Overview

Gift Cards Market Size was valued at USD 829.7 Billion in 2022. The Gift Cards market industry is projected to grow from USD 980.7 Billion in 2023 to USD 3,736.6 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 18.20% during the forecast period (2023 - 2032). Users' desire for digital gifting choices is rising, along with their usage of gift cards as incentives and rewards, and their preference for experiences over physical gifts is the key market drivers enhancing the market growth.

        Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Gift Cards Market Trends

• Increase in demand for digital gifting options among users is driving the market growth

The market for gift cards is primarily driven by the rise in the demand for digital gifting choices among users since it is a simple and practical way for customers to buy gifts for friends, family, and coworkers because they can be purchased online or in-store. The market for gift cards is also greatly influenced by the growing usage of gift cards as incentives and rewards, as well as by customer preferences for experiences over material gifts. However, a key barrier impeding the growth of the gift cards industry is the limited acceptance of gift cards, as gift cards issued by a certain retailer or brand are frequently only accepted at those retailer's storefronts or online shops and cannot be used at other establishments. A significant barrier to the expansion of the gift cards market is security issues related to the use of gift cards.

With the quick development of cellphones, gift cards have grown more inventive. Gift card enthusiasts and smartphone users now have a variety of options for combining everything into a handy package thanks to the use of contemporary technology and marketing tactics. As more people use smartphones, the market for gift cards is likely to grow due to the convenience and flexibility they provide for consumers. For instance, one of the most well-liked options is Gyft, which is accessible on iPhone and Android. Gift cards can be loaded into the app by users and used whenever they go shopping. The market is anticipated to increase as a result of more integrations like this.

Gift cards are currently one of the most acceptable ways for businesses to generate revenue. Due to continual technology developments, gift card businesses can now make more money. These improvements to gift cards benefit businesses by making them more distinctive and desirable. For instance, tracking gift cards enables customers to buy and give gift cards online while also checking the cards' expiration dates. It also gives recipients the option to donate their gift cards to worthy causes. The card's issuer is not charged if the recipient does not use the card after it expires. As a result of these extensive new offers that are focused on the customer experience, the market for gift cards is growing. Given that they are frequently available in digital form and are thus simple to buy and use, gift cards have grown in popularity along with the development of digital and mobile technology. Gift cards can also be bought in-store or online, making them a simple and practical option for customers to buy presents for friends, family, and coworkers. Additionally, a lot of gift card sellers provide unique designs and customized phrases, which can give a gift an even more unique touch. Digital gift cards also provide a lot of benefits over conventional physical gift cards. Thus, driving the Gift Cards market revenue.

Gift Cards Market Segment Insights

Gift Cards Card Type Insights

The Gift Cards Market segmentation, based on card type, includes closed-loop card and open-loop card. Closed-loop card segment accounted for the largest revenue share in 2022. Gift card recipients are more likely to use closed loop gift cards, which are beneficial for businesses because they can only be used at one store or with one corporate brand. Additionally, advantages include giving merchants a chance to profit from goods sold using the gift card, free user activation, and others encourage the use of closed loop gift cards. For instance, InComm Payments, a company that offers gift cards, prepaid wireless items, and other payment solutions, predicted in August 2020 that 4.7 closed loop cards would be purchased on average per quarter in the first half of 2020, up 20% from the 3.9 cards purchased per quarter in 2019.

Gift Cards End User Insights

The Gift Cards Market segmentation, based on end user, includes retail establishment and corporate institutions. Retail establishment segment dominated the Gift Cards Market in 2022. Since its inception, the retail industry has had to contend with issues including losing clients, managing and motivating staff, and staying abreast of shifting consumer demands. Independent retailers have built successful businesses throughout time while facing challenging and intense competition. The need for merchants to develop innovations and swift business capabilities to meet customer demands has arisen recently. As a result, they have begun using or continually adding appealing gift cards and vouchers to stay competitive and stand out from the crowd.

Figure 1: Gift Cards Market, by End User, 2022 & 2032 (USD Billion)

     Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Gift Cards Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Gift Cards Market dominated this market in 2022 (45.80%). This is a result of government measures that encourage the use of digital payments as cash substitutes in a variety of sectors, including retail, banking, hospitality, and corporate organizations. The region's gift card market is expanding as a result of technological developments in product offerings, a rise in the use of digital gift cards in the United States and Canada, and increased omnichannel marketing for gift card programs. Further, the U.S. Gift Cards market held the largest market share, and the Canada Gift Cards market was the fastest growing market in the North America region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: GIFT CARDS MARKET SHARE BY REGION 2022 (USD Billion)

    Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Gift Cards market accounted for the healthy market share in 2022. Gift cards are now more popular and in demand in the area as a result of several prepaid programs launched by an Italian post office called Postepay. The use of these cards for online shopping, travel, and giving them to kids as cash substitutes is on the rise, which drives the expansion of gift cards in Germany and Italy. Further, the German Gift Cards market held the largest market share, and the U.K Gift Cards market was the fastest growing market in the European region

The Asia Pacific Gift Cards market is expected to register significant growth from 2023 to 2032. This is explained by increasing internet usage, a sharp increase in computer literacy, and high disposable money. The demand for gift cards is influenced by a variety of factors, including holiday gifting, occasion-based gifting, personalized gifting, and corporate gifting. Moreover, China’s Gift Cards market held the largest market share, and the Indian Gift Cards market was the fastest growing market in the Asia-Pacific region.

Gift Cards Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Gift Cards market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Gift Cards industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Gift Cards industry to benefit clients and increase the market sector. In recent years, the Gift Cards industry has offered some of the most significant advantages to medicine. Major players in the Gift Cards market, including Fiserv, Inc., Givex Corporation, Blackhawk Network, InComm Payments LLC, Walmart Inc., Amazon.com Inc., American Express Company, Qwikcilver Solutions Pvt Ltd., Paytronix Systems, Inc., and PayPal, Inc., are attempting to increase market demand by investing in research and development Card Types.

The American Express Co. (Amex) is a company that offers travel-related services and card products. For use by people, small and medium-sized businesses, corporations, and others, it provides a variety of credit cards, charge cards, and other payment and financing options. The business provides network services, payment settlement, point-of-sale marketing, and merchant acquisition and processing. Amex's US headquarters are in New York. The 25 independent historic restaurants in the US will receive a total of USD 1 million in grant money under the "Backing Historic Small Restaurants" grant program, according to a July 2022 announcement from American Express and the National Trust for Historic Preservation.

Prepaid payment network Blackhawk Network Holdings Inc (BHN) provides a variety of prepaid gift card options using proprietary technology. The business offers consumers both real and digital gift cards through online distributors and shops. The corporation has operations in Asia, Australia, Europe, North America, and South America. In the US, Pleasanton, California, serves as the home base for BHN. In June 2022, Restaurant.com, owned and operated by RDE, Inc. (OTCQB: RSTN), entered into a partnership with global branded payments provider Blackhawk Network to expand distribution of the dining deal site's gift card program. The new program will include eGift options offered on GiftCardMall.com and across other top digital retailers via Blackhawk's online distribution network.

Key Companies in the Gift Cards market include

• Fiserv, Inc.


• Givex Corporation


• Blackhawk Network


• InComm Payments LLC


• Walmart Inc.


• com Inc.


• American Express Company


• Qwikcilver Solutions Pvt Ltd.


• Paytronix Systems, Inc.


• PayPal, Inc.


• NATS Limited

Gift Cards Industry Developments

September 2023: Razorpay, a domestic payments and banking platform for enterprises, debuted the D2C GRO Suite. This week, the business sponsored the D2C Sparkx 2023 event, where the D2O GRO Suite was revealed. Razorpay promises that this suite will enable brands to address a variety of difficulties throughout the e-commerce lifecycle. This involves providing better purchasing experiences, preventing fraud, and enabling frictionless checkouts. The company also claims that the expanded package of tools would enable 2.5 lakh e-commerce and direct-to-consumer brands raise sales by 50%.

June 2022: By enabling customers to buy bitcoin using their LibertyX accounts at participating US retailers like Fresco y Más, Harveys Supermarkets, Southeastern Grocers, Tops, Weis, and Winn-Dixie, Blackhawk Network and LibertyX increased the accessibility of cryptocurrencies.

April 2022: The first NFT promotion in the history of the NFT will be distributed by purchasing a gift card with real and virtual ("Web3") world value, according to Blackhawk Network, a leading global provider of branded payments.

Gift Cards Market Segmentation

Gift Cards Card Type Outlook

• Closed-loop Card


• Open-loop Card

Gift Cards End User Outlook

• Retail Establishment


• Corporate Institutions

Gift Cards Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America