Gift Card Market Size, Share, Industry, Forecast and Outlook (2024-2031)

Global Gift Card Market is Segmented By Type (Open Loop, Closed Loop), By Product (E-Gift Cards, Physical Cards), By Distribution Channel (Retail Stores, Online Platforms, Others), By End-User (Retail, Restaurants, Entertainment, Travel, Others), and By Region (North America, Europe, South America, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Gift Card Market Overview

The global gift card market is projected to reach at a CAGR of 13.8% during the forecast period (2024-2031).

A gift card is a prepaid card that can be used to purchase goods or services at a specific retailer, brand or group of retailers. They are typically purchased as a gift for someone else, allowing the recipient to choose their own gift within the parameters set by the gift card. In addition to their convenience and flexibility, gift cards also offer benefits for retailers. They can help to increase sales and customer loyalty, as well as providing valuable data on consumer spending patterns and preferences.

Gift Card Market Scope

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Gift Card Market Dynamics and Trends

Convenience and flexibility in gift cards

Gift cards are a popular gift-giving option for many occasions and the global gift card market continues to grow at a steady pace. One of the main drivers of this growth is the convenience and flexibility that gift cards offer to both consumers and retailers. 

Convenience is a key factor in the gift card market. Gift cards offer a simple and hassle-free way for consumers to purchase gifts for others. Rather than spending time searching for the perfect gift, gift cards allow consumers to give a gift that allows the recipient to choose their own gift. This is particularly appealing for time-starved consumers who want a quick and easy gift-giving solution. Flexibility is another important driver of the gift card market. Gift cards provide flexibility for both consumers and retailers. For consumers, gift cards can be used to purchase a wide range of goods and services, from clothing and electronics to food and travel. This flexibility allows the recipient to choose a gift that is tailored to their own interests and preferences.

Therefore, convenience and flexibility are key drivers of the global gift card market. By offering a convenient and flexible gift-giving option for consumers and a flexible sales and inventory management solution for retailers, gift cards are able to meet the needs of both parties and drive growth in the market. The ability to purchase gift cards online and personalize them further enhances their appeal and convenience.

Gift card fraud 

Gift card fraud is a significant issue that can hamper the growth of the global gift card market. Fraudulent activity can occur in a number of ways, such as through the use of stolen or counterfeit gift cards or through the use of fraudulent online transactions. One of the main ways that gift card fraud occurs is through the use of stolen or counterfeit gift cards. Criminals can steal gift cards or create counterfeit cards that look legitimate and then sell or use them for fraudulent purposes. This can result in lost revenue for retailers and reduced consumer confidence in the gift card market. 

Gift Card Market Segment Analysis

The global gift card market is segmented based on type, product, distribution channel, industry and region.

Owing to increased brand awareness and tailored promotions and incentives drives the closed loop segment growth

Closed loop gift cards play a significant role in driving the growth of the global gift card market. These types of gift cards are typically issued by a single retailer or brand and can only be used at their specific locations or online store. Closed loop gift cards can be used to offer tailored promotions and incentives to customers. For example, retailers can offer discounts or other incentives to customers who purchase gift cards or who spend a certain amount of money. This can help to drive sales and increase revenue, while also building customer loyalty. Closed loop gift cards offer retailers a powerful tool for building brand awareness and promoting their products. By offering gift cards as part of a marketing campaign, retailers can increase brand awareness among consumers and encourage them to visit their stores or website. This can help to drive the market growth.

Source: DataM Intelligence Analysis (2023)

Gift Card Market Geographical Share

The growing E-commerce in the region strengthening the growth of the Asia-Pacific gift card market

Strong e-commerce growth has been a major driver of the Asia-Pacific gift card market. The rise of online shopping has transformed the way consumers purchase goods and services and gift cards have become an important part of this ecosystem. Online shopping offers consumers a level of convenience that traditional brick-and-mortar stores cannot match. Consumers can shop for goods and services from the comfort of their own homes and gift cards are a natural fit for this type of shopping experience. Digital gift cards can be purchased and redeemed online, making the process of giving and receiving gifts easier than ever. E-commerce has made it easier than ever to personalize the gift-giving experience. Many retailers now offer digital gift cards that can be customized with a personal message or even a photo, making them a more thoughtful and personalized gift. 

Therefore, strong e-commerce growth has played a critical role in the growth of the Asia-Pacific gift card market. As more consumers turn to online shopping, the demand for digital gift cards is likely to continue to grow and retailers that offer convenient, flexible and secure gift card options will be well-positioned to succeed in this market.

Source: DataM Intelligence Analysis (2023)

Gift Card Market Companies

The major global players include Blackhawk Network, InComm, Givex, National Gift Card Corp., CashStar, Tango Card, Qwikcilver, SVS, Card Compliant and First Data.

Key Developments

• On December 14, 2022, IKEA U.S. and Blackhawk Network, a leader in international branded payments, have partnered up to sell gift cards from the furniture and home brand to independent shops.
• In October, 2022, Blackhawk Network, a leading international gift card company, has introduced Ultimate Gift Card for Everyone, allowing Australian consumers access to the most companies on one card.
• On July 20, 2022, In Brazil, the first pharmacy omnichannel gift card was introduced by Givex and Pague Menos.

The global gift card market report would provide approximately 69 tables, 67 figures and 212 Pages.