Gift Card Market Size, Share & Forecast Report, 2034

GIFT CARD MARKET OVERVIEW

The global Gift Card Market size was valued approximately USD 66.98 Billion in 2025 and will touch USD 135.71 Billion by 2034, growing at a compound annual growth rate (CAGR) of 8.16% from 2025 to 2034.

The gift card is usually a prepaid card used for payment at some certain places that may be for buying something or services. Commonly, it has a monetary value that can be utilized by the recipient for the purchase of commodities within the store or chain issuing them. They are available in physical or digital forms and normally come when a person wants to give another a present of his choice. The convenience and flexibility of the purchase make them popular, as this is one way of giving a gift without necessarily specifying the item of gift. They can also be used both in-store and online, depending on the policies of the issuer.

IMPACT OF KEY GLOBAL EVENTS

“Impact of Geopolitical Tensions on the Global Gift Card Market”

Trade disputes and sanctions, coupled with changing global relations, have influenced the geopolitical environment by affecting supply chains and changing customer purchasing behavior. Political uncertainties in various parts of the globe have fluctuated currency values, thereby affecting the price and demand for gift cards, especially in international markets. More specifically, increased protectionism and changes to cross-border trading rules also have made it difficult for retailers to issue multiple-region gift cards. Amidst all this turmoil, digital gift cards gained even greater favor because they enable seamless, borderless alternatives to physical cards.

LATEST TREND

”Rising Popularity of Digital Gift Cards as Consumer Preferences Shift Towards Convenience and Sustainability”

The latest gift card market trend points to a growing adoption of digital cards, driven by convenience and their perceived sustainability. The shift away from the purchase of physical gift cards to e-gift cards is caused by environmental impact. Other advantages offered by digital gift cards include instant delivery, convenience in usage, and redemption online. Retailers are also attracted to digital gift cards as a way to streamline product offerings and help reach tech-savvy consumers. In this way, market dynamics have significantly changed.

GIFT CARD MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Closed-loop Card,Open-loop Card.

Closed-loop Card:Closed-loop cards are one type of prepaid card designed for use only at a single merchant or group of affiliated merchants. These cards, issued by a particular retailer or brand, limit redemption of funds to only their stores or websites. In the case of closed-loop gift cards, the market has become strong for those brands that have very loyal customers since such cards encourage customers to make repeat purchases and maintain loyalty. However, their usage is limited, and their appeal may be less than open-loop cards, which offer broader usage across different retailers.
Open-loop Card:An open-loop card is a type of prepaid card used in multiple merchants, be it online or offline, at every location where a major payment network like Visa or MasterCard is accepted. These cards are more flexible compared to closed-loop cards and have received increasing patronage in recent times because consumers like the flexibility to use them at varied locations. The transactions of open-loop cards are growing due to consumer demand for convenience, especially for online shopping and for people trying to avoid cash. Their wide acceptance has subsequently made them popular among users as a result.

By Application

Based on application, the global market can be categorized into Retail Establishment,Corporate Institutions.

Retail Store:Gift cards from retail establishments are usually used in particular stores or chains. These cards are popular for holidays, birthdays, and other gifting occasions since they allow the recipient to choose products from the brand or retailer. The market for retail establishment gift cards is still strong, as they create customer loyalty and encourage repeat visits to the store. Many retailers offer both physical and digital gift cards, making it easier for consumers to gift or redeem cards. However, the market is competitive, with numerous brands vying for consumer attention, requiring continuous innovation in product offerings.
Corporate Institutions:The main application of gift cards in corporate institutions is as an employee reward system, incentives, or promotional campaigns. These can be given out as bonuses, to keep the performance of employees up, or on special occasions like holidays. Corporate gift cards are gaining momentum in the market, with companies realizing their potential in employee morale and satisfaction. These cards are also used by businesses for marketing and customer acquisition by giving them away as loyalty programs or using them in sales promotions. The flexibility and universal appeal make these cards a preferred option for corporate gifting and promotional activities.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

”Digital Transformation and Growing Consumer Preferences Fueling Gift Card Demand”

The rising shift of consumers toward online transactions and buying is driving demand for gift cards. Consumers are looking for convenience and ways to handle gifting with flexibility. Digital Gift Cards have equally surged in acceptance because of convenience and instant deliveries. These have also become an important part of retailers' and brands' marketing and loyalty strategies due to growing adoption, which, in turn, fuels the growth of the market. Growing corporate gifting and employee rewards programs are yet other factors driving the demand for both physical and digital gift cards.

Restraining Factor

”Security Concerns and Regulatory Hurdles Limiting Gift Card Adoption”

The major challenges facing the gift card market are the security issues regarding both physical and digital cards, including fraud and misuse, factors that might keep away some consumers from gifting cards in the first place. In addition, regulatory obstacles in certain regions on the issuance and use of gift cards stand in the way of market growth and create confusion among consumers and companies alike. Also, the issue of expiration dates and fees on gift cards is likely to make consumers lose confidence in buying them.

Opportunity

”Technological Innovations and Integration Creating New Growth Avenues for Gift Cards”

There are great avenues for growth in the gift card market through technology innovations such as more personalization and integration into mobile payment systems. As consumers increasingly demand seamless and efficient shopping experiences, the inclusion of gift cards into mobile apps and digital wallets will add another layer of convenience. Subscription-based models and the emergence of e-commerce platforms create new avenues for using gift cards to satisfy a wide range of consumer needs and encourage broader adoption across industries.

Challenge

”Navigating Complex Regulations and Saturated Markets in the Gift Card Industry”

The main challenges for companies operating in the market include regulatory compliance and quality standards regarding the issuance and use of gift cards. Regulations vary region by region, which may raise complications in extending the services of gift cards globally. Furthermore, market saturation in some regions can limit growth opportunities, putting pressure on companies to find ways to differentiate their offerings and maintain consumer interest.

GIFT CARD MARKET REGIONAL INSIGHTS

North America

The North American gift card market is mature, with the United States leading the region in both physical and digital gift card sales. High consumer spending, a very strong affinity for e-commerce, and wide-ranging adoption of digital methods for making payments drive the market. Gift cards are also issued extensively by retailers and corporations for promotions, employee rewards, and customer loyalty programs. Moreover, digital gift cards are advertised with increased mobile wallet adoption and the rise in popularity of online shopping. E-gift card demands will, hence, increase due to changes in consumer behavior in response to these alternatives.

Europe

The European market for gift cards has grown steadily as it is driven by demand for digital gift cards across different sectors, including retail, travel, and entertainment. Key factors driving growth include the convenience that gift cards bring to consumers and businesses, especially in key economies like the UK, Germany, and France. Corporate gifting and incentives have also contributed to the market's expansion. However, the growth of the market in some regions is pretty slow because of more strict regulatory frameworks and diversified consumer preferences. Digital transformation and e-commerce growth remain the main drivers of the European market.

Asia

The gift card market keeps on growing throughout Asia, especially in developing markets such as China, India, and Southeast Asia. The rising middle class and growing shopper spending in the region spur on increasing demand for gift cards. Reetail and online shopping are the leading sectors experiencing this demand. Digital gift cards will see greater demand due to the growth in e-commerce and mobile payment adoption, especially in countries like Japan, South Korea, and China. This can be attributed to the expansion of corporate gifting and incentives in the region, complemented by the gradual shift toward cashless transactions. Yet, the path ahead is littered with certain challenges related to regional regulatory differences and increasing awareness for proper growth in some areas.

KEY INDUSTRY PLAYERS

”Key Industry Players Shaping the Gift Card Market Through Technological Innovation and Strategic Partnerships”

Key players in the gift card industry continuously drive the market through innovation and strategic partnerships. Already, companies integrate gift cards into digital wallets, which provides consumers with an excellent experience, encouraged by the recent upsurge in adopting digital and mobile payment platforms. This resultantly leads to the unfolding of a new avenue for growth-the growth of corporate gifting programs and loyalty rewards. These companies are also exploring new technologies like blockchain for added security and anti-fraud measures. With increased competition, leading players in the market are concentrating on personalization and customization of gift cards to meet the changing preferences of consumers.

List of Top Gift Card Market Companies

Givex Corporation
Fiserv, Inc.
Blackhawk Network
Qwikcilver Solutions Pvt Ltd.
PayPal, Inc.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The gift card market is gaining momentum in the present scenario, as both physical and digital cards are becoming increasingly popular in retail, corporate gifting, and e-commerce sectors. Digital solutions have taken the lead in consumer preference, with mobile wallets and online shopping gaining momentum; hence, e-gift cards have become very popular. The fact that gift cards are used by various employers and employers as a promotional tool or as an incentive has increased the demand for these cards. Although North America and Europe dominate the market, the Asia-Pacific region is growing fast, especially with growing middle-class populations and rising disposable incomes.

The future will see further growth in the gift card market, and it will be driven by digital cards and integrations with mobiles. Innovations such as blockchain for enhanced security and customized solutions will offer new growth opportunities. However, some challenges related to regulatory compliance, security concerns, and regional market variations might act as stumbling blocks. As the market matures, companies will focus on offering more personalized and seamless experiences to retain consumer loyalty and stay competitive in the ever-evolving landscape.