Gift Card Market to grow by USD 1.33 Billion (2025-2029), fueled by e-commerce growth. Report on AI's role in redefining market landscape - Technavio

NEW YORK, Jan. 29, 2025 /PRNewswire/ -- Report with market evolution powered by AI - The global gift card market size is estimated to grow by USD 1.33 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of over 15.4%  during the forecast period. Growth of e-commerce sector is driving market growth, with a trend towards rise of open-loop gift cards. However, additional loss of money in using gift cards  poses a challenge. Key market players include Alighieri, Blackhawk Network Holdings Inc., Card USA Inc, Duracard Plastic Cards, Fidelity National Information Services Inc., Fiserv Inc., FleetCor Technologies Inc., Givex Corp., Hennes and Mauritz AB, InComm Payments, JIFITI PRODUCTS, Kindcard Inc., PineLabs Pvt. Ltd., Plastek Card Solutions Inc., Runa Network Ltd., Square Inc., Tele Pak Inc., TransGate Solutions, Village Roadshow Ltd., and Yiftee Inc..

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Gift cards continue to trend as popular payment methods for various occasions and sectors. Prepaid cards loaded with an amount of money are widely used for payment in stores, websites, restaurants, and even for experiences. Businesses, including retailers or brands, other businesses, and corporate clients, offer gift cards as rewards & incentives. Consumers, especially younger generations like Millennials and Gen Z, prefer digital gifting options for their convenience and customizability. Impacting factors include consumer preferences, customer behavior, internet accessibility, and the shift towards cashless transactions. Digital platforms, FinTechs, and PayTechs have made it easier for givers to purchase and send digital gift cards online. Market participants include retail sectors, travel companies, OTT platforms, content platforms, and hospitality services. Tax-advantage cards, E gifting, M commerce, and E commerce are also popular. Strategic alliances between brands and digital services have expanded the reach of gift cards as marketing tools. Digital cards, virtual cards, and mobile gift cards offer practical solutions for businesses and individual users alike. 

An increasing trend among vendors is the launch of open-loop gift cards, as opposed to closed-loop cards. Open-loop cards, which are not limited to a specific business and are branded with payment card processors like Visa, MasterCard, and American Express, offer greater flexibility and acceptance for customers. InComm, a leading UK-based prepaid product and payments technology company, has been providing the Vanilla Go global open-loop gift card brand for over five years. Open-loop Mastercard gift cards offer a personalized gifting experience, making them a preferred choice for many consumers. Vendors continue to innovate in this segment, expanding the offerings of open-loop gift cards. 

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•         Gift cards have become a popular payment method for consumers during special occasions, birthdays, holidays, and as expressions of love, gratitude, and appreciation. Prepaid cards, offering an amount of money for payment at various stores, websites, restaurants, and retail establishments, have gained traction among businesses, other businesses, and corporate clients. Consumers prefer digital gifting options due to convenience and the ability to customize and choose from various digital platforms, mobile wallets, and loyalty programs. Impacting factors include consumer behavior, younger generations like Millennials and Gen Z, cashless transactions, internet accessibility, and the growing popularity of e-commerce activities. Retail sectors, travel companies, OTT platforms, content platforms, and hospitality industries have embraced digital gift cards as a marketing tool and customer loyalty program. Strategic alliances between retailers or brands, FinTechs, and PayTechs have led to the development of various digital cards, virtual cards, and mobile gift cards. The convenience, practicality, and customizability of digital gift cards make them a preferred choice for individual users and B2B sales. Tax-advantage cards and e-gifting have also gained popularity in the M-commerce and E-commerce sectors. The Demonetization and Digital India initiative have further accelerated the adoption of digital services and cashless transactions.

•         Gift cards offer an alternative form of payment for purchases, providing an additional spending power. However, they come with certain challenges. For instance, some cards have expiration dates, which may lead to unused funds if not used within the specified time. Additionally, physical gift cards can be misplaced, resulting in a loss of the card and the funds associated with it. Furthermore, gift cards are available in various denominations, which may leave small amounts of unused funds after a purchase. These factors may result in additional expenses for the recipient.

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This gift card market report extensively covers market segmentation by  

1. Type 
• 1.1 E-gifts cards
• 1.2 Physical gift cards
2. Distribution Channel
• 2.1 Offline
• 2.2 Online
3. Geography 
• 3.1 North America
• 3.2 Europe
• 3.3 APAC
• 3.4 Middle East and Africa
• 3.5 South America
4. Card Type

1.1 E-gifts cards-  E-gift cards have become a popular and convenient gifting solution in the retail sector. Their evolution has been driven by the digitalization trend in retail, enabling instant delivery via email with a confirmation to purchasers. E-gift cards offer enhanced versatility and flexibility, making them ideal for last-minute gifting and eliminating the risk of losing physical cards. In the corporate sector, e-gift cards have gained traction as a suitable option for employee, client, and stakeholder gifting, reducing the need for personalized gifts and logistical challenges. Vendors benefit from the financial viability and operational efficiency of e-gift cards, which can be easily integrated with their core products and services. These factors are expected to fuel the growth of the e-gift card market segment during the forecast period.

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Prepaid gift cards have revolutionized the way we express love, gratitude, and appreciation. These plastic or digital cards allow the recipient to receive a specified amount of money that can be used for payment at various stores, websites, restaurants, and businesses. The convenience of gift cards has made them a popular choice for consumer behavior, especially among younger generations. With the rise of e-gifting, m-commerce, and e-commerce, gift cards have become more accessible than ever. Strategic alliances between brands and retailers have led to the creation of co-branded cards, while digital and virtual cards offer instant delivery. Gift cards serve as effective marketing tools for brand owners and customer loyalty programs, enhancing the overall shopping experience.

Gift cards have become a popular form of payment and gifting in today's digital age. Prepaid cards loaded with a specific amount of money can be used for various payments at stores, websites, restaurants, and businesses. The convenience of gift cards makes them an ideal choice for special occasions like birthdays, holidays, and other celebrations. Consumers prefer digital gifting options due to their practicality, customizability, and environmental friendliness. The market for gift cards is vast and includes retailer or brand-specific cards, cards from other businesses, and corporate clients for their employees or customers. Digital platforms and mobile wallets have made gifting more accessible, with consumers increasingly turning to online channels for purchasing and sending digital gift cards. Impacting factors include consumer preferences, customer behavior, younger generations like Millennials and Gen Z, cashless transactions, and the growing popularity of mobile payments and e-commerce activities. Loyalty programs and rewards & incentives are also significant drivers of the gift card market. Travel companies, OTT platforms, content platforms, and hospitality industries are among the sectors that heavily rely on gift cards as a marketing tool and customer loyalty program. The gift card market is a dynamic space with market participants offering various types of cards, including tax-advantage cards, e-gifting, M-commerce, and E-commerce. Strategic alliances between brands, FinTechs, and PayTechs have led to innovative digital cards, virtual cards, and mobile gift cards, making gifting more convenient and accessible than ever before.

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Type
• E-gifts Cards
• Physical Gift Cards
• Distribution Channel
• Offline
• Online
• Geography
• North America
• Europe
• APAC
• Middle East And Africa
• South America
• Card Type

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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SOURCE Technavio