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Global Gift Cards Market Size was valued at USD 829.9 Billion in 2022. The Gift Cards market industry is projected to grow from USD 980.9 Billion in 2023 to USD 3,736.6 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 18.40% during the forecast period (2023 - 2032). Users' preference for experiences over physical gifts and their use of gift cards as incentives and rewards are all increasing their need for digital gifting options, are the key market drivers enhancing the market growth.
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Source: Secondary Research, Primary Research, RESEARCH LAYER Database and Analyst Review
Gift cards may be bought online or in stores, making them a convenient and easy way for customers to buy gifts for friends, family, and coworkers. This growth in demand for digital gifting options among users is the main factor driving the market for gift cards. The market for gift cards is also significantly impacted by consumer preferences for experiential presents over material ones, as well as by the expanding use of gift cards as incentives and rewards. Gift cards issued by one retailer or brand are typically exclusively accepted at those merchant's storefronts or online stores and cannot be used at other places, which poses a significant barrier to the growth of the gift cards sector. Security concerns around the use of gift cards act as a substantial impediment to the market's progress.
Gift cards have become more creative as a result of the rapid advancement of telephones. Thanks to the use of modern technology and marketing strategies, gift card fans and smartphone users now have a choice of possibilities for putting everything into a convenient package. Due to the ease and flexibility that gift cards offer for consumers, the market for them is anticipated to expand as more people use smartphones. Gyft, for instance, which is available on both iPhone and Android, is one of the most popular solutions. Users can load gift cards into the app and spend them whenever they go shopping. We predict that when more integrations like this occur, the industry will grow.
One of the most popular ways for businesses to make money right now is through gift cards. Because of ongoing technological advancements, gift card businesses can now generate more revenue. Businesses gain from these enhancements to gift cards since they make them stand out and be more appealing. Customers can purchase and give gift cards online while also reviewing the cards' expiration dates thanks to tracking gift cards, for instance. Additionally, it offers customers the chance to donate their gift cards to deserving causes. If the recipient does not use the card after it expires, the card's issuer is not billed. The market for gift cards is expanding as a result of these broad new offers that are concentrated on the customer experience. Gift cards have increased in popularity along with the growth of digital and mobile technology since they are typically available in digital form and are thus simple to purchase and use. Gift cards are a convenient and easy choice for customers to purchase presents for friends, family, and coworkers because they can be purchased both in-person and online. Additionally, a lot of gift card merchants offer distinctive designs and personalized messages, which can add an even more distinctive touch to a gift. The advantages of digital gift cards versus traditional physical gift cards are numerous. Thus, driving the Gift Cards market revenue.
The global 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. Since closed loop gift cards may only be used at one store or with one corporate brand, gift card recipients are more likely to use them, which is advantageous for businesses. Additionally, benefits include encouraging the usage of closed loop gift cards, free user activation, and allowing retailers an opportunity to earn from goods sold using the gift card. For instance, InComm Payments, a provider of gift cards, prepaid wireless products, and other payment solutions, forecasted in August 2020 that, compared to the 3.9 cards bought each quarter in 2019, 4.7 closed loop cards will be bought on average every three months in the first half of 2020.
The global Gift Cards market segmentation, based on End User, includes Retail Establishment and Corporate Institutions. Retail Establishment segment dominated the global Gift Cards market in 2022. Since its inception, the retail sector has had to deal with challenges like client loss, personnel management and motivation, and keeping up with changing consumer needs. Independent retailers have developed prosperous enterprises throughout the years despite difficult and fierce competition. Recently, the need for retailers to create novel products and quick business skills to meet customer expectations has emerged. As a result, in order to remain competitive and stand out from the competition, they have started using or regularly adding enticing gift cards and vouchers.
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Source: Secondary Research, Primary Research, RESEARCH LAYER Database and Analyst Review
Insights into the markets in North America, Europe, Asia-Pacific, and the rest of the world are provided by the study. The North America Gift Cards Market dominated this market in 2022 (45.80%). This is a result of policies adopted by the government that support the substitution of digital payments for cash in a number of industries, including retail, banking, hospitality, and corporate institutions. The use of digital gift cards has expanded in the United States and Canada, there has been an increase in omnichannel marketing for gift card programs, and the market for gift cards in the region is growing as a result of technical advancements in product offerings. Further, In the North American area, the U.S. Gift Cards market had the biggest market share, while the Canada Gift Cards market had the quickest rate of expansion.
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.
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In 2022, the Europe Gift Cards market held a sizable portion of the overall market. As a result of many prepaid programs introduced by an Italian post office called Postepay, gift cards are now more well-known and in demand in the area. The growth of gift cards in Germany and Italy is being driven by the rising use of these cards for online shopping, travel, and gifting them to youngsters in place of cash. Further, In the European region, the German Gift Cards market had the biggest market share, and the U.K. Gift Cards market had the quickest rate of growth.
The Asia Pacific Gift Cards market is expected to register significant growth from 2023 to 2032. The rise in internet usage, the steep rise in computer literacy, and the high level of disposable income all contribute to this explanation. A number of factors, such as gift-giving around the holidays, occasion-based giving, personalized giving, and corporate giving, affect the demand for gift cards. Moreover, In the Asia-Pacific region, the Indian Gift Cards market had the quickest rate of growth while China's Gift Cards market had the greatest market share.
Leading industry companies are making significant R&D investments in order to diversify their product offerings, which will drive the Gift Cards market's expansion. Important market developments include new product releases, contractual agreements, mergers and acquisitions, greater investments, and collaboration with other organizations. Market participants are also engaging in a number of strategic actions to increase their global footprint. The Gift Cards sector needs to provide affordable products if it wants to grow and thrive in a more competitive and challenging market environment.
One of the primary business strategies employed by manufacturers in the worldwide Gift Cards industry to assist customers and expand the market sector is local manufacturing to reduce operational costs. Some of the biggest benefits to medicine have recently come from the Gift Cards sector. 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 business that provides card goods and travel-related services. It offers a range of credit cards, charge cards, and other payment and financing solutions for use by individuals, small and medium-sized businesses, organizations, and others. The company offers merchant acquisition and processing, point-of-sale marketing, payment settlement, and network services. New York serves as the US headquarters for Amex. According to a July 2022 announcement from American Express and the National Trust for Historic Preservation, the 25 independently owned historic restaurants in the US would receive a total of USD 1 million in grant money under the "Backing Historic Small Restaurants" grant program.
Using proprietary technology, the prepaid payment network Blackhawk Network Holdings Inc (BHN) offers a range of prepaid gift card choices. Through online retailers and distributors, the company provides customers with both physical and digital gift cards. The company has operations in North America, South America, Australia, Asia, and Europe. The US headquarters of BHN are located in Pleasanton, California. In order to increase the distribution of the gift card program for the dining deal website Restaurant.com, which is owned and run by RDE, Inc. (OTCQB: RSTN), in June 2022, entered into a relationship with the international branded payments provider Blackhawk Network. Through Blackhawk's online distribution network, the new program will offer eGift alternatives found on GiftCardMall.com and at numerous other major digital shops.
· Fiserv, Inc.
· Givex Corporation
· Blackhawk Network
· InComm Payments LLC
· Walmart Inc.
· Amazon.com Inc.
· American Express Company
· Qwikcilver Solutions Pvt Ltd.
· Paytronix Systems, Inc.
· PayPal, Inc.
· NATS Limited
June 2022: Blackhawk Network and LibertyX extended the use of cryptocurrencies by enabling customers to purchase bitcoin using their LibertyX accounts at participating US merchants like Fresco y Más, Harveys Supermarkets, Southeastern Grocers, Tops, Weis, and Winn-Dixie.
April 2022: According to Blackhawk Network, a top provider of branded payments worldwide, 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.
· Closed-loop Card
· Open-loop Card
· Retail Establishment
· Corporate Institutions
· 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
|
Report Attribute/Metric |
Details |
|
Market Size 2022 |
USD 829.9 Billion |
|
Market Size 2023 |
USD 980.9 Billion |
|
Market Size 2032 |
USD 3,736.6 Billion |
|
Compound Annual Growth Rate (CAGR) |
18.40% (2023-2032) |
|
Base Year |
2022 |
|
Market Forecast Period |
2023-2032 |
|
Historical Data |
2018- 2022 |
|
Market Forecast Units |
Value (USD Billion) |
|
Report Coverage |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
|
Segments Covered |
Card Type, End User, and Region |
|
Geographies Covered |
North America, Europe, Asia Pacific, and the Rest of the World |
|
Countries Covered |
The U.S., Canada, German, France, U.K, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
|
Key Companies Profiled |
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. |
|
Key Market Opportunities |
Growth in popularity of gift cards |
|
Key Market Dynamics |
Increase in demand for digital gifting options among users and increased use of gift cards as rewards & incentives and consumer preference for experiences over tangible gifts |
The global Gift Cards Market was valued at USD 829.9 billion in 2022, and it is estimated to reach USD 3736.6 billion by 2032.
The global market is projected to grow at a CAGR of 18.40% during the forecast period, 2023-2032.
North America had the largest share in the global market
The key players in the market are 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.
The Closed-loop Card, Card Type dominated the market in 2022.
The Retail Establishment End User had the largest share in the global market.
Research on the market is done by industry professionals who provide personalized insights on the industry structure, market segmentation, Type assessment, competitive landscape (CL), along with penetration, and emerging trends. In addition to years of professional experience in their various fields and sectors, their analysis is largely based on primary interview (60%) and secondary research (40%) as well as years of professional experience. In addition, our researchers forecast the market's direction over the following seven years by examining past trends and the market's current position. Additionally, various trends of segments and categories that are geographically portrayed are studied and estimated using primary and secondary research.
The key level executives (VP, CEO, Marketing Directors, and Business Development Managers) of the major industry participants who are active and prominent as well as mid-scale businesses operating in this market were interviewed in-depth for this supply-side report by overall Global Market Research.
Extensive primary research was conducted to gain a deeper grasp of the market and industry. Both primary and secondary research, as well as years of pertinent professional experience, are used to support the analysis. By analyzing past and present market patterns, our experts were able to forecast the market's course over the following seven years. For the geographically offered categories in the list of market tables, it differs per category. In connection with the Global Market research report, we also conducted a number of primary interviews with senior level executives (VP, CEO's, Directors, Marketing Directors, Business Development Managers, CFOs, Technical Consultants, Key Opinion Leaders, Industry Experts, Decision Matrix Authorities, and other crucial individuals) of the key industry players who dominated the Global market.
The primary purpose of secondary research was to gather, identify, and validate the information necessary for the thorough, technical, market-focused, and commercial analysis of the global market. With the use of this study, it was also possible to classify and segment the market in accordance with market trends, geographic markets, and regional considerations linked to market type. Analysts have gathered data in the Distribution Channel for the study of the market from reliable sources including annual reports, journals, white papers, corporate presentations, company websites, international organizations of Energy and Power manufacturers, credible paid databases, and many others to gather reliable intel.
Both top-down and bottom-up methodologies were employed to assess the accuracy of the global market size. The market for as a whole was estimated using these methods for a number of different dependent submarkets. Secondary research was used to address the major industry players, and primary and secondary research was used to calculate their market shares in the various regions. This complete intellectual process includes reading the annual and financial reports of the top market participants and conducting in-depth interviews with top industry executives (VP, CEO, Marketing Directors, and Business Development Managers) to gain important industry insights.
Through reliable secondary sources and validated primary sources, the classification of the global markets and their geographic percentage splits were established. To obtain the final qualitative and quantitative data, all relevant variables that might have an impact on the market under investigation have been taken into consideration, inspected in great depth, verified through primary research, and assessed. This information was collected, added to, and thoroughly examined by professional analysts before being provided in this report. The process used to estimate the overall market size for this study is depicted in the following image as an example.
Report Code :
RL65195
Published on :
Sep 2023
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