Gift Cards Market - By Type (Closed-loop Gift Cards, Open-loop Gift Cards), By Distribution Channel (Online, Offline), By Form (Virtual, Physical), By Ability to Reload, By Application, By End User & Forecast, 2024 - 2032

Published Date: July - 2024 | Publisher: MRA | No of Pages: 240 | Industry: Media and IT | Format: Report available in PDF / Excel Format

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Gift Cards Market - By Type (Closed-loop Gift Cards, Open-loop Gift Cards), By Distribution Channel (Online, Offline), By Form (Virtual, Physical), By Ability to Reload, By Application, By End User & Forecast, 2024 - 2032

Gift Cards Market Size

Gift Cards Market was valued at USD 534.4 billion in 2023 and is estimated to grow at a CAGR of over 20% between 2024 and 2032. The gift card market is expanding globally due to rising consumer demand for flexible and convenient giving options. Gift cards allow recipients to select their preferred products or services, making them a popular alternative to traditional gifts.

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For instance, in June 2024, Google Wallet partnered with Pine Labs to help manage gift cards within an app. This partnership came nearly three weeks after Google announced the launch of its digital wallet application in India. Through a partnership with Pine Labs, Google Wallet users can store and manage their gift cards within the app. The application will prompt customers to use their gift cards at the point of purchase.

This adaptability is especially appealing in a global market where consumer preferences are diverse and continuously changing. The emergence of e-commerce and digital payment platforms has considerably aided the gift card market growth. The simplicity of acquiring and delivering digital gift cards online corresponds with modern consumer behavior, which stresses ease of use and immediate reward. Significant technological improvements and the widespread use of mobile devices are also driving growth in the worldwide gift card market.

The integration of gift cards with mobile wallets and apps has made it easier for customers to maintain and redeem their cards, improving the user experience and increasing adoption rates. Blockchain technology is emerging as a means of improving the security and transparency of gift card transactions, thereby mitigating fraud and misuse.

Gift Cards Market Report Attributes
Report Attribute Details
Base Year 2023
Gift Cards Market Size in 2023 USD 534.4 Billion
Forecast Period 2024 – 2032
Forecast Period 2024 – 2032 CAGR 20%
2024 – 2032 Value Projection USD 4 Trillion
Historical Data for 2021 – 2023
No. of Pages 210
Tables, Charts & Figures 454
Segments covered Type, Distribution Channel, Form, Reloadability, Application, End User
Growth Drivers
  • Technological advancements in digital payments
  • Rising e-commerce and online shopping trends
  • Personalized and customizable gifting options
  • Global expansion and cross-border gifting
  • Corporate adoption and employee incentives
Pitfalls & Challenges
  • Fraud and security concerns in digital gift card transactions
  • Regulatory compliance and market fragmentation

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The gift card industry has significant challenges in terms of fraud and security. Fraudulent activities, such as card cloning, illegal access, and phony gift card frauds, can erode customer confidence and cause financial losses for both consumers and businesses. Addressing these concerns necessitates investments in advanced security measures, such as encryption and real-time monitoring, which can be costly and difficult to implement. Without effective security standards, the legitimacy of gift cards might be undermined, thereby preventing consumers and businesses from engaging in the market.

Gift card regulations vary per country, including issue, expiration, and taxation. Companies that operate in different regions must ensure that they follow local laws, which might require significant legal and administrative resources. Noncompliance with these regulations can lead to penalties, legal challenges, and reputational damage. This regulatory complexity can impede market expansion and raise operating expenses, making it challenging for enterprises to scale their gift card products abroad.

Gift Cards Market Trends

Gift cards are more convenient than ever with digital options and mobile wallet integration. They're faster to deliver, too. You can even add a special touch with a custom message or fun design. But it's not just about convenience. Blockchain technology makes gift cards more secure and less likely to be stolen. And there's a growing trend towards eco-friendly gift cards made from sustainable materials. Businesses are also getting on board, using gift cards for incentives and loyalty programs. The best part? Gift cards are now available globally in different currencies. You can even use them for virtual experiences and subscription services. It's a whole new world of gifting possibilities!

In September 2023, in India, the Government-backed Open Network for Digital Commerce (ONDC) introduced the "ONDC Network Gift Card." This network-level gift card can be utilized by companies for corporate gifting and employee engagement in anticipation of the upcoming festive season.

Gift Cards Market Analysis

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Based on type, the market is divided into closed-loop gift cards, and open-loop gift cards. The closed-loop gift cards segment is expected to reach a value over USD 2 trillion by 2032.

  • Closed-loop gift cards are typically issued by a specific retailer or group of retailers and are restricted to use within their establishments. This type of gift card promotes customer loyalty and ensures repeat business within the issuing retailer's ecosystem. Customers often purchase closed-loop gift cards for convenience and as gifts, providing recipients with the flexibility to choose products or services from a preferred retailer without the need for cash transactions.
  • The closed-loop gift card market's expansion is further propelled by advancements in digital technology, enabling seamless integration of gift card functionalities into mobile apps and online platforms. This enhances accessibility and ease of use for both consumers and retailers, fostering a robust ecosystem for gift card transactions.

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Based on distribution channel, the market is divided into online, and offline. The online segment dominated and is expected to grow at a rate of over CAGR 25% during the forecast period.

  • Online platforms offer unparalleled convenience for purchasing and redeeming gift cards. Consumers can browse, select, and send digital gift cards from the comfort of their homes or on-the-go via mobile devices. This convenience aligns with modern lifestyles where digital transactions are preferred for their speed and ease.
  • The proliferation of e-commerce platforms has streamlined the integration of gift card functionalities. Online retailers can seamlessly incorporate gift cards into their checkout processes, offering customers a versatile gifting option alongside product purchases. This integration boosts sales and enhances customer retention strategies.

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North America dominated the global gift cards market in 2023, accounting for a share of over 30%. High consumer purchasing power and a strong gift-giving culture drive market growth in North America. The region's sophisticated digital infrastructure and broad use of e-commerce platforms make it easier for customers to buy and utilize gift cards. Furthermore, the presence of multiple large stores and technology companies that provide different and enticing gift card possibilities increases market value. Corporate usage of gift cards for staff awards and consumer loyalty programs is also widespread, fueling demand.

Gift cards are a popular choice for a variety of events as Americans value the flexibility and convenience they provide. The U.S. also has a big number of large shops and technology companies that offer a diverse range of gift card possibilities, increasing customer attractiveness. Corporate use of gift cards for staff awards and consumer loyalty programs is widespread, contributing to market growth. Developments in mobile wallet integration and increased security measures further increase the utility and attractiveness of gift cards, cementing the U.S. as a prominent player in the worldwide gift card market.

Hey there! You know those handy gift cards? They're all the rage in China right now, thanks to all their fancy tech and shoppers who love to spend. With a huge population that's totally comfortable with gadgets, digital gift cards and online shopping are like king and queen. You can use them to buy anything from shoes to sushi. They're super easy to use too, especially with mobile payment apps like Alipay and WeChat Pay. But here's the cool partcompanies are getting creative with gift cards. They're making them personalized and fun for all sorts of occasions. It's like a gift-giving party that never ends! So, yeah, the Chinese gift card market is booming like nobody's business.

In May 2024, InComm Payments, a global payments technology provider, announced the launch of Roblox gift cards at both online and physical retailers in Hong Kong. This introduction marked the first time Roblox gift cards are available for purchase in the Hong Kong market, offering access to the popular online immersive platform where millions of people connect and communicate daily.

The gift cards market in South Korea is quickly developing, owing to the country's sophisticated retail sector and strong smartphone penetration rates. South Korean customers, known for their love of technology and convenience, are adopting digital gift cards as an alternative to traditional gifts. Major retail chains and entertainment venues provide a comprehensive choice of gift card alternatives to attract a wide range of customers. The incorporation of gift cards into mobile payment apps and reward programs improves their attractiveness and usability.

In Japan, the gift card market is booming! It's not just the way people have always given gifts that's driving this growth; technology is playing a big role too. Japanese people love the convenience of gift cards, especially digital ones they can buy and use online or on their phones. From big stores to department stores and convenience stores, there's a gift card for everyone's taste. Here's what sets Japan's gift card scene apartthey're often linked to loyalty programs and partnerships with famous brands, making them even more appealing as gifts. Even though cash is still king for traditional celebrations, the rise of digital payments and online shopping is making gift cards increasingly popular in Japan's ever-changing retail world.

Gift Cards Market Share

Guess what? Amazon is the reigning champ in the gift card game, owning a whopping chunk of it! And it's not hard to see why. They've got everything you could ever want, from tech toys to clothes and even food. Plus, you can use their gift cards to buy digital goodies too. So basically, an Amazon gift card is like a magical pass to an endless world of awesome stuff. Buying and using these gift cards is a breeze. You can do it all online, or even print them out if you're feeling old-school. And you can choose to get it delivered as an email, a physical card, or even a printable version. How convenient is that? Businesses are also big fans of Amazon gift cards. They love using them as rewards for their employees or to drum up excitement for promotions. So, that's another reason why Amazon's gift card game is so strong.

Gift Cards Market Companies

Major players operating in the gift cards industry are

  • Amazon.com Inc.
  • American Express Company
  • Blackhawk Network
  • Fiserv, Inc.
  • Givex Corporation
  • InComm Payment LLC

Gift Cards Industry News

  • In December 2023, Pine Labs' Qwikcilver, a prominent provider of comprehensive gift card and stored value solutions across Southeast Asia and India, teamed up with foodpanda, Asia's largest food and grocery delivery network (excluding China), to introduce foodpanda Gift Cards. This enhanced offering allowed foodpanda customers to conveniently redeem and complete their purchases.

The gift cards market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) from 2021 to 2032, for the following segments

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Market, By Type

  • Closed-loop gift cards
  • Open-loop gift cards

Market, By Distribution Channel

  • Online
  • Offline

Market, By Form

  • Virtual
  • Physical

Market, By Ability to Reload

  • Non-reloadable gift cards
    • Retail gift cards
    • Promotional cards
    • Incentive cards
  • Reloadable gift cards
    • General Purpose Reloadable Cards (GPR)
    • Corporate/Business cards
    • Teen and student cards

Market, By Application

  • Personal finance
  • Marketing & promotions
    • E-commerce
    • Fashion & lifestyle
    • Grocery & supermarket
    • Gaming & entertainment
    • Online streaming
  • Hospitality & travel
    • Dining & restaurant
    • Travel & hotel
    • Spa & wellness
  • Education
  • Non-profit & charity
  • Other applications

Market, By End User

  • Retail consumers
  • Corporate institutions

The above information is provided for the following regions and countries

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Italy
    • Spain
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • ANZ
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • MEA
    • UAE
    • Saudi Arabia
    • South Africa
    • Rest of MEA

 

 

Table of Content

Report Content

Chapter 1   Methodology & Scope

1.1    Market scope & definition

1.2    Base estimates & calculations

1.3    Forecast calculation

1.4    Data sources

1.4.1    Primary

1.4.2    Secondary

1.4.2.1    Paid sources

1.4.2.2    Public sources

Chapter 2   Executive Summary

2.1    Industry 360º synopsis, 2021 - 2032

Chapter 3   Industry Insights

3.1    Industry ecosystem analysis

3.2    Vendor matrix

3.3    Profit margin analysis

3.4    Technology & innovation landscape

3.5    Patent analysis

3.6    Key news and initiatives

3.7    Regulatory landscape

3.8    Impact forces

3.8.1    Growth drivers

3.8.1.1    Technological advancements in digital payments

3.8.1.2    Rising e-commerce and online shopping trends

3.8.1.3    Personalized and customizable gifting options

3.8.1.4    Global expansion and cross-border gifting

3.8.1.5    Corporate adoption and employee incentives

3.8.2    Industry pitfalls & challenges

3.8.2.1    Fraud and security concerns in digital gift card transactions

3.8.2.2    Regulatory compliance and market fragmentation

3.9    Growth potential analysis

3.10    Porter’s analysis

3.10.1   Supplier power

3.10.2   Buyer power

3.10.3   Threat of new entrants

3.10.4   Threat of substitutes

3.10.5   Industry rivalry

3.11    PESTEL analysis

Chapter 4   Competitive Landscape, 2023

4.1    Introduction

4.2    Company market share analysis

4.3    Competitive positioning matrix

4.4    Strategic outlook matrix

Chapter 5   Market Estimates & Forecast, By Type, 2021 - 2032 (USD Billion)

5.1    Key trends

5.2    Closed-loop gift cards

5.3    Open-loop gift cards

Chapter 6   Market Estimates & Forecast, By Distribution Channel, 2021 - 2032 (USD Billion)

6.1    Key trends

6.2    Online

6.3    Offline

Chapter 7   Market Estimates & Forecast, By Form, 2021 - 2032 (USD Billion)

7.1    Key trends

7.2    Virtual

7.3    Physical

Chapter 8   Market Estimates & Forecast, By Ability to Reload, 2021 - 2032 (USD Billion)

8.1    Key trends

8.2    Non-reloadable gift cards

8.2.1    Retail gift cards

8.2.2    Promotional cards

8.2.3    Incentive cards

8.3    Reloadable gift cards

8.3.1    General purpose reloadable cards (GPR)

8.3.2    Corporate/business cards

8.3.3    Teen and student cards

Chapter 9   Market Estimates & Forecast, By Application, 2021 - 2032 (USD Billion)

9.1    Key trends

9.2    Personal finance

9.3    Marketing & promotions

9.3.1    E-commerce

9.3.2    Fashion & lifestyle

9.3.3    Grocery & supermarket

9.3.4    Gaming & entertainment

9.3.5    Online streaming

9.4    Hospitality & travel

9.4.1    Dining & restaurant

9.4.2    Travel & hotel

9.4.3    Spa & wellness

9.5    Education

9.6    Non-profit & charity

9.7    Other applications

Chapter 10   Market Estimates & Forecast, By End User, 2021 - 2032 (USD Billion)

10.1    Key trends

10.2    Retail consumers

10.3    Corporate institutions

Chapter 11   Market Estimates & Forecast, By Region, 2021 - 2032 (USD Billion)

11.1    Key trends

11.2    North America

11.2.1   U.S.

11.2.2   Canada

11.3    Europe

11.3.1   UK

11.3.2   Germany

11.3.3   France

11.3.4   Italy

11.3.5   Spain

11.3.6   Rest of Europe

11.4    Asia Pacific

11.4.1   China

11.4.2   India

11.4.3   Japan

11.4.4   South Korea

11.4.5   ANZ

11.4.6   Rest of Asia Pacific

11.5    Latin America

11.5.1   Brazil

11.5.2   Mexico

11.5.3   Rest of Latin America

11.6    MEA

11.6.1   UAE

11.6.2   South Africa

11.6.3   Saudi Arabia

11.6.4   Rest of MEA

Chapter 12   Company Profiles

12.1    Amazon.com Inc.

12.2    American Express Company

12.3    Apple Inc.

12.4    Best Buy Co., Inc.

12.5    Blackhawk Network

12.6    CVS Health Corporation

12.7    Deluxe Card Services

12.8    eBay Inc.

12.9    Fiserv, Inc.

12.10    Givex Corporation

12.11    Harmony Gifts

12.12    Home Depot, Inc.

12.13    InComm Payment LLC

12.14    Lowe's Companies, Inc.

12.15    Mastercard Incorporated

12.16    PayPal, Inc

12.17    Paytronic System, Inc

12.18    Pine Labs Pvt.

12.19    Premier Gift Cards

12.20    Qwikcilver Solutions Pvt Ltd

12.21    Spectrum Rewards

12.22    Starbucks Corporation

12.23    Target Corporation

12.24    Visa Inc.

12.25    Walmart Inc.

  • Amazon.com Inc.
  • American Express Company
  • Blackhawk Network
  • Fiserv, Inc.
  • Givex Corporation
  • InComm Payment LLC

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