Global Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) - Q2 2024 Update

The gift card industry in the region is expected to grow by 7.9% on annual basis to reach US$555.8 billion in 2024.

The gift card industry globally will continue to grow over the forecast period and is expected to record a CAGR of 6.6% during 2024-2028. Gift card market in the country will increase from US$515.0 billion in 2023 to reach US$716.9 billion by 2028.

The global gift card sector is experiencing dynamic growth driven by innovative product launches, strategic partnerships, and regional expansions. Key trends include advancements in digital gift card features, increased international investments, and evolving regulatory frameworks aimed at enhancing consumer protection and market efficiency. As companies adapt to these changes, the gift card industry is poised to continue its expansion, reflecting its growing significance in both consumer spending and economic development.

Key Developments in the Gift Card Sector in Global

Product Launches and Innovations

Givex Brasil's New Partnerships: Givex Brasil has reported significant growth due to new product launches and strategic partnerships. In 2023, the company collaborated with the jewelry brand Vivara to launch an e-gift solution and partnered with WeWork Brasil to develop a gift card program. Additionally, Givex expanded its network by adding over 500 locations through a partnership with a major hospitality chain and surpassed BRL 1.5 billion in gift card sales through its platform, GivexHub.

Expansion of International Players: The Mexican market has attracted international gift card companies looking to expand their services. Notably, Swile, a French firm specializing in employee benefits and gift cards, raised US$200 million in funding and is planning to enter the Mexican market. This reflects a broader trend of international investment in Mexico's gift card sector, which is expected to enhance competition and innovation.

Qwikcilver and foodpanda Partnership: In December 2023, Qwikcilver, a subsidiary of Pine Labs, partnered with foodpanda to launch foodpanda Gift Cards. Initially available for corporate customers in Singapore and Thailand, these gift cards are expected to roll out across all 11 markets where foodpanda operates, significantly enhancing Qwikcilver's market presence in the region.

Tbay's Quick Sell Mode: Also in December 2023, Tbay, a Singapore-based gift card platform, introduced a feature called Quick Sell Mode, designed to expedite gift card transactions by reducing processing time by at least 20%. This innovation aims to address consumer demand for faster and more secure transaction processes, which has become increasingly important in the gift card market.

Marks & Spencer's Gift Card Revenue Surge: Marks & Spencer reported a 245% increase in gift card revenue in 2023, attributed to its partnership with Runa, a digital value payments network. This collaboration has enabled Marks & Spencer to enhance its gift card distribution and streamline its ordering process, thereby expanding its customer base and improving sales performance.

The Galleria Al Maryah Island Gift Card Giveaway: To celebrate its 10th anniversary, The Galleria in Abu Dhabi launched a gift card giveaway campaign worth Dh1 million. Shoppers could enter a prize draw by spending Dh500 or more, with 100 winners receiving Dh10,000 worth of gift cards. This initiative not only incentivized shopping but also aimed to increase foot traffic in the mall.

YouGotaGift, a leading digital gift card provider, has expanded its product lineup with new gift cards for brands like The Blue Salon and Kunooz. Additionally, during the Diwali celebrations, they launched Kalyan Jewellers gift cards, catering to the large Indian expatriate community in the UAE. These launches reflect the growing demand for diverse gift card options among consumers.

Recharge.com Expansion: The Dutch fintech company Recharge.com has expanded its services in Saudi Arabia and the UAE, offering digital gift cards for popular brands such as Netflix and Spotify. This move aligns with the increasing trend of digital gift card adoption in the region, particularly among younger consumers.

Shoprite Introduces Grocery Gift Card Program to Boost Vaccination Rates - In November 2023, the South African Department of Health announced a grocery gift card program in partnership with Shoprite to encourage the elderly to get vaccinated. The R26 million pilot scheme aims to benefit 260,000 consumers over the age of 60 by providing them with R100 grocery gift cards redeemable at Shoprite, Checkers, and U-Save stores.

Pick n Pay Introduces Reloadable Gift Cards - Pick n Pay launched reloadable gift cards in May 2024, providing customers with a convenient way to give and receive gifts. The cards can be loaded with any amount between R50 and R2000 and can be used at any Pick n Pay store.

United Airlines Gift Card Exchange Program: Launched in March 2024, United Airlines introduced a MileagePlus Gift Card Exchange program, allowing customers to exchange unused gift cards for airline miles. This program includes participation from over 100 retailers, including major brands like Starbucks and Target, and aims to address the issue of unspent gift cards in the U.S. market.

Givex Digital Ecommerce Module: In October 2023, Givex launched a new feature called the Digital Ecommerce Module, which allows customers to customize gift cards with personal touches like video messages. This feature is designed to enhance customer engagement and improve the overall gift card experience.

Tbay's Quick Sell Mode: Tbay, a global gift card platform, introduced Quick Sell Mode in December 2023 to expedite gift card transactions by at least 20%. This feature aims to streamline the buying and selling process for gift cards, enhancing user convenience.

New Features by Givex: Givex launched a Digital Ecommerce Module that allows customers to customize their e-gift cards. This innovation includes the ability to add videos and animations to gift card deliveries, enhancing the personalization aspect of gifting. The new feature also supports payment through digital wallets like Apple Pay and Google Pay, making transactions more convenient.

Local Gift Card Programs: Various local governments and organizations in Canada have initiated gift card programs to support local businesses. For instance, the Selkirk Chamber's program has gained popularity, encouraging consumers to spend at independent retailers. Such initiatives have been successful in driving local economic activity and increasing consumer spending beyond the face value of the gift cards.

Strategic Partnerships

Givex Brasil Partnerships: Givex Brasil has reported significant growth due to new product launches and strategic partnerships. In 2023, the company collaborated with the jewelry brand Vivara to launch an e-gift solution and partnered with WeWork Brasil to develop a gift card program. Additionally, Givex expanded its network by adding over 500 locations through a partnership with a major hospitality chain.

Qwikcilver and foodpanda Partnership: In December 2023, Qwikcilver, a subsidiary of Pine Labs, entered a strategic partnership with foodpanda to launch foodpanda Gift Cards. Initially targeted at corporate customers in Singapore and Thailand, these gift cards are set to expand across all 11 markets where foodpanda operates, significantly bolstering Qwikcilver's position in the gift card market.

Marks & Spencer's Partnership with Runa: Marks & Spencer reported a 245% increase in gift card revenue in 2023, attributed to its partnership with Runa, a digital value payments network. This collaboration has enabled Marks & Spencer to enhance its gift card distribution and streamline its ordering process, thereby expanding its customer base and improving sales performance.

Local Gift Card Programs: Various local governments in the United Kingdom initiated gift card programs aimed at boosting economic activity in their communities. For instance, Miconex reported a substantial increase in local gift card sales, which reached £12.4 million in 2023, with a 69% rise compared to the previous year. This trend is expected to continue, with more towns and cities launching their own local gift card initiatives to support local businesses.

YouGotaGift and Carrefour Partnership - In January 2024, YouGotaGift, a leading digital gift card marketplace, announced a strategic collaboration with Carrefour in the UAE. This partnership allows YouGotaGift to widen the distribution of its multi-brand gift cards through Carrefour's retail channels, catering to the growing demand for gift cards among consumers in the Emirates.

During the Diwali celebrations, YouGotaGift launched Kalyan Jewellers gift cards, catering to the large Indian expatriate community in the UAE. This launch reflects the growing demand for diverse gift card options among consumers and the importance of strategic partnerships in meeting the needs of specific target segments.

SureGifts and Eat’N’Go Partnership - In Q4 2023, SureGifts, a leading gift card platform in Nigeria, entered into a strategic partnership with Eat’N’Go, the master franchise for Domino’s Pizza, Cold Stone Creamery, and Pinkberry in Nigeria. This collaboration led to the launch of gift cards for these brands, available in various denominations starting from N5,000. This partnership aims to tap into the growing demand for gift cards in the Nigerian market, targeting both individual consumers and corporate clients.

YouGotaGift and Carrefour Collaboration - In January 2024, YouGotaGift, a prominent digital gift card marketplace, announced a strategic collaboration with Carrefour in the UAE. This partnership allows YouGotaGift to distribute its multi-brand gift cards through Carrefour's retail outlets, significantly widening its distribution network in the region. This move is particularly important as competition in the digital gift card market intensifies.

Affirm and Blackhawk Network: In December 2023, Affirm entered a strategic partnership with Blackhawk Network, enabling Affirm users to purchase gift cards directly through the Affirm app. This collaboration aims to leverage the growing demand for gift cards and expand Affirm's network reach in the digital payment space.

Venmo and InComm: In October 2023, Venmo partnered with InComm to offer digital gift cards. This partnership allows Venmo users to send and receive digital gift cards for popular brands, which can be stored in the app for future use, enhancing convenience for consumers.

Miconex and Local Governments: Miconex has partnered with various local governments to implement gift card programs aimed at supporting local businesses. These initiatives have been particularly successful, with sales from local gift card programs in Canada significantly increasing, demonstrating the effectiveness of community-focused strategies

Givex and Retailers: Givex has expanded its partnerships with retailers to enhance its digital gift card offerings. The introduction of the Digital Ecommerce Module allows consumers to customize their e-gift cards, integrating features that appeal to modern shoppers. This partnership strategy aims to improve customer experience and increase adoption of digital gift cards.

Mergers and Acquisitions

InComm Payments' Strategic Investments: InComm Payments has been actively expanding its operations in Brazil, focusing on developing an IT hub for software development and quality assurance. This investment may involve strategic partnerships or acquisitions to bolster its position in the growing Brazilian gift card market.

Card Factory Acquires SA Greetings Corporation - In a significant move to expand its international presence, Card Factory, a high street gift card retailer, acquired the South African business SA Greetings Corporation (Pty) Ltd for £2.5 million. This acquisition, completed recently, includes the entire issued share capital of SA Greetings, which operates as a wholesaler of greeting cards and gift packaging. The acquisition is aimed at enhancing Card Factory's growth strategy by leveraging SA Greetings' established wholesale accounts and operational capabilities in South Africa.

Blackhawk Network and Tango Card: In January 2024, Blackhawk Network announced its acquisition of Tango Card, a B2B gift card firm. This acquisition is expected to enhance Blackhawk's capabilities in providing scalable gift card solutions and strengthen its position in the market.

RDE and CardCash.com: Also in January 2024, RDE, the parent company of Restaurant.com, completed its acquisition of CardCash.com. This deal, first announced in August 2023, is expected to expand RDE's marketing opportunities and provide Restaurant.com customers with more options for purchasing discounted gift cards. The combined entities generated over $100 million in revenue in 2023, highlighting the potential for growth through this acquisition.

Regulatory Changes

CoDi in Mexico: The introduction of CoDi (Cobro Digital) has streamlined instant payments in Mexico, making them more accessible for consumers and merchants. This digital payment initiative facilitates the use of gift cards by enabling quicker transactions, thus supporting the growth of the gift card market in the region.

Regulatory Complexities: The gift card market faces various regulatory and compliance challenges across different countries in the Asia Pacific. These include differing taxation issues and consumer protection laws, which complicate the operations of gift card issuers and retailers that operate in multiple jurisdictions. Adhering to local regulations adds complexity to gift card programs and distribution channels.

Fraud and Security Risks: The region has seen a rise in concerns regarding gift card fraud, counterfeiting, and unauthorized use. Regulatory bodies are increasingly focused on implementing robust security measures and fraud detection systems to protect consumers and businesses. This includes requirements for card vendors to demonstrate experience and good credit records to mitigate risks associated with gift card transactions.

Local Government Gift Card Programs: Numerous local governments, especially in the United Kingdom, have launched gift card initiatives aimed at revitalizing local economies. These programs are designed to encourage spending in local businesses and have seen significant success. For instance, Miconex reported that local gift card sales reached £12.4 million in 2023, with a 69% increase compared to the previous year. This trend is expected to continue, with more towns and cities adopting similar programs in 2024.

Support for Independent Retailers: The local gift card programs are specifically aimed at driving consumer spending in high streets and downtown areas, supporting both independent and national retailers. The initiatives have proven effective in encouraging consumers to spend above the value of the gift cards, further stimulating local economies.

Consumer Protection Initiatives: As the popularity of gift cards rises, there may be a push from governments and regulatory authorities to implement policies aimed at safeguarding consumers against issues such as expiration dates, fees, and fraud. This could lead to the development of standardized regulations governing the issuance and management of gift cards.

Fintech Regulations: With the thriving fintech sector in the region, regulatory bodies may introduce policies that facilitate the integration of gift cards within broader digital payment ecosystems. This could include guidelines on how gift cards can be used in conjunction with mobile wallets and other digital payment platforms.

South Africa Introduces New Regulations for Gift Card Expiry Dates - In July 2024, the South African government implemented new regulations regarding the expiry dates of gift cards. Under the updated rules, gift cards issued in South Africa must have a minimum expiry period of 3 years from the date of issuance or last reload. This is aimed at protecting consumers and ensuring they have sufficient time to redeem their gift cards. The regulations also mandate clear disclosure of expiry dates on all gift cards.

Consumer Protection Regulations - Consumer protection regulations in South Africa have also been strengthened to enhance transparency regarding gift card terms and conditions. For instance, gift cards must clearly state their expiry dates, which cannot be less than three years from the date of issuance. This regulation is designed to protect consumers from losing their funds due to short expiry periods.

Regulatory Framework for Digital Gift Cards - As digital gift cards gain popularity, regulatory bodies across Africa are beginning to establish frameworks to govern their use. This includes guidelines on the issuance, redemption, and security measures for digital gift cards to protect consumers from fraud and misuse. The focus is on creating a secure digital payment environment that fosters consumer confidence in using gift cards as a payment method.

New Jersey Gift Card Regulations: Recently, New Jersey implemented new regulations requiring the registration of gift cards. These regulations mandate that unused balances on gift cards must be escheated (transferred) to the state after two years. This change poses compliance challenges for retailers, as they must update their point-of-sale systems and ensure adherence to these new rules while balancing consumer privacy concerns and customer service quality.

Federal Reserve Insights on Consumer Spending: The Federal Reserve has reported that consumer spending on gift cards continues to grow, outpacing general retail spending. This trend highlights the increasing importance of gift cards as a payment method and incentivizes retailers and businesses to adapt their policies and offerings accordingly.

Provincial Regulations

British Columbia: The Business Practices and Consumer Protection Act (BPCPA) regulates gift cards in British Columbia. This legislation prohibits expiry dates on gift cards and restricts fees, allowing them only under specific circumstances (e.g., replacing lost cards or for mall cards).

Suppliers must disclose key information about the gift cards, including any fees, restrictions, and terms of use, ensuring transparency for consumers.

Ontario: The Ontario Consumer Protection Act (CPA) mandates that gift card agreements must be in writing and clearly disclose all fees and restrictions. Expiry dates are not permitted under this act, which aims to protect consumers from losing the value of their gift cards.

Other Provinces: Other provinces have similar regulations, each with specific rules regarding expiry dates, fees, and disclosure requirements. The enforcement of these regulations typically falls under provincial consumer protection agencies.

Federal Regulations - While most gift card regulations are provincial, federal laws such as the Competition Act apply, particularly concerning misleading advertising and consumer protection. This federal oversight ensures that gift card marketing practices do not deceive consumers.

These regulatory changes and government initiatives reflect a growing recognition of the gift card sector's significance in consumer spending and economic support, prompting businesses to adapt to new compliance requirements and leverage opportunities for community engagement.

The global gift card industry has recorded steady growth amid the rising investment from leading players such as Blackhawk Network and InComm Payments in the sector. This coupled with the rise of innovative fintech firms has also supported the growth of the gift card sector around the world. With the demand for gift cards expected to further rise among consumers and corporates, the publisher expects these players to further boost their investment in the segment and also forge strategic alliances to drive their growth.

This report provides a detailed data centric analysis of gift card market, covering market opportunities and risks across a range of retail categories. With over 75 KPIs at country level, this report provides a comprehensive understanding of gift card market dynamics, market size and forecast.

This title is a bundled offering, comprising 1 global, 5 regional and 20 country reports

• Global Report - Global Gift Card and Incentive Card Market Intelligence (Databook)
• Regional Report 1 - North America Gift Card and Incentive Card Market Intelligence (Databook)
• Regional Report 2 - Europe Gift Card and Incentive Card Market Intelligence (Databook)
• Regional Report 3 - Latin America Gift Card and Incentive Card Market Intelligence (Databook)
• Regional Report 4 - Middle East & Africa Gift Card and Incentive Card Market Intelligence (Databook)
• Regional Report 5 - Asia Pacific Gift Card and Incentive Card Market Intelligence (Databook)
• Country Report 1 - Argentina Gift Card and Incentive Card Market Intelligence (Databook)
• Country Report 2 - Australia Gift Card and Incentive Card Market Intelligence (Databook)
• Country Report 3 - Brazil Gift Card and Incentive Card Market Intelligence (Databook)
• Country Report 4 - Canada Gift Card and Incentive Card Market Intelligence (Databook)
• Country Report 5 - China Gift Card and Incentive Card Market Intelligence (Databook)
• Country Report 6 - France Gift Card and Incentive Card Market Intelligence (Databook)
• Country Report 7 - Germany Gift Card and Incentive Card Market Intelligence (Databook)
• Country Report 8 - India Gift Card and Incentive Card Market Intelligence (Databook)
• Country Report 9 - Indonesia Gift Card and Incentive Card Market Intelligence (Databook)
• Country Report 10 - Italy Gift Card and Incentive Card Market Intelligence (Databook)
• Country Report 11 - Kenya Gift Card and Incentive Card Market Intelligence (Databook)
• Country Report 12 - Mexico Gift Card and Incentive Card Market Intelligence (Databook)
• Country Report 13 - Nigeria Gift Card and Incentive Card Market Intelligence (Databook)
• Country Report 14 - Philippines Gift Card and Incentive Card Market Intelligence (Databook)
• Country Report 15 - Russia Gift Card and Incentive Card Market Intelligence (Databook)
• Country Report 16 - South Africa Gift Card and Incentive Card Market Intelligence (Databook)
• Country Report 17 - Thailand Gift Card and Incentive Card Market Intelligence (Databook)
• Country Report 18 - United Arab Emirates Gift Card and Incentive Card Market Intelligence (Databook)
• Country Report 19 - United Kingdom Gift Card and Incentive Card Market Intelligence (Databook)
• Country Report 20 - United States Gift Card and Incentive Card Market Intelligence (Databook)

Scope

This bundled offering provides the following detailed gift card market opportunity at country level.

Total Spend on Gifts

• By Consumer Segment (Retail and Corporate)
• By Product Categories (13 Segments)
• By Retail Sectors (7 Segments)

Gift Card Market Size by KPIs across Consumer Segments

• Gross Load Value
• Transaction Value
• Unused Value
• Average Value Per Transaction
• Transaction Volume
• Average Value of Card Purchased
• Number of Cards

Gift Card Market Size by Consumer Segment

• Retail Consumer
• Corporate Consumer (Small Scale, Mid-Tier, Large Enterprise)

Digital Gift Card Market Size

• By Retail Consumer
• By Retail Purchase Occasion
• By Corporate Consumer
• By Corporate Purchase Occasion
• By Company Size

Gift Card Market Size by Retail Consumer

• By Functional Attribute
• By Occasion
• Festivals & Special Celebration Days
• Milestone Celebration
• Self-Use
• Other
• Value by Purchase Channel

Gift Card Spend by Consumer Behavior and Demographics

• Consumer Purchase Behaviour
• Gift Card Buyer by Age Group
• Gift Card Buyer by Income Level
• Gift Card Buyer by Gender

Gift Card Market Size by Corporate Consumer

• By Functional Attribute
• By Occasion
• Employee Incentive
• Sales Incentive
• Consumer Incentive
• By Scale of Business

Gift Spend by Product Categories (Split by Retail and Corporate Consumers)

• Food & Beverage
• Health, Wellness & Beauty
• Apparel, Footwear & Accessories
• Books & Media Products
• Consumer Electronics
• Restaurants & Bars
• Toys, Kids, and Babies
• Jewelry
• Sporting Goods
• Home & Kitchen Accessories & Appliances
• Travel
• Entertainment & Gaming
• Other

Gift Card Spend by Retail Sector (Split by Retail and Corporate Consumers)

• Ecommerce & Department Stores
• Restaurants & Bars
• Supermarket, Hypermarket, Convenience Store
• Entertainment & Gaming
• Specialty Stores
• Health & Wellness
• Travel

Gift Card Spend by Distribution Channel (Split by Retail and Corporate Consumers)

• Gift Card Online Sales
• Gift Card Offline Sales
• 1st Party Sales
• 3rd Party Sales
• Sales Uplift

Closed Loop Gift Card Market Share by Key Retailers. Key Retailers Covered Include:

• Cencosud SA
• Carrefour SA
• Coto CICSA
• MercadoLibre Inc
• Importadora y Exportadora de la Patagonia SA
• Wal-Mart Stores Inc
• Garbarino SA
• Wesfarmers Ltd
• Woolworths Ltd (Australia)
• Metcash Ltd
• Aldi Group
• Harvey Norman Holdings Ltd
• JB Hi-Fi Ltd
• Apple Inc
• Casino Guichard-Perrachon SA
• Natura Cosméticos SA
• Lojas Americanas SA
• Adeo Groupe
• Magazine Luiza SA
• George Weston Ltd
• Empire Co Ltd
• Costco Wholesale Corp
• Metro AG
• Canadian Tire Corp Ltd
• Home Depot Inc, The
• Liquor Control Board of Ontario
• Hudson's Bay Co
• Home Hardware Stores Ltd
• Best Buy Co Inc
• Alibaba Group Holding Ltd
• JD.com Inc
• Auchan Group SA
• Bailian Group Co Ltd
• Yonghui Superstores Group
• E Leclerc
• ITM Enterprises SA
• Systéme U Centrale Nationale Sa
• Schwarz Beteiligungs GmbH
• Amazon.com Inc
• Edeka Zentral AG & Co KG
• Rewe Group
• dm-Drogerie Markt GmbH & Co KG
• Tengelmann Group, The
• Dirk Rossmann KG
• Globus Holding GmbH & Co
• Inter Ikea Systems BV
• H&M Hennes & Mauritz AB
• Flipkart Online Services Pvt Ltd
• Tata Group
• Future Group
• Reliance Group
• Aditya Birla Group
• K Raheja Corp
• Salim Group
• Trans Retail Indonesia PT
• Matahari Putra Prima Tbk PT
• Sumber Alfaria Trijaya Tbk PT
• Delhaize Group Sa
• Kompas Gramedia Group
• Ace Hardware Corp
• Coop Italia scarl
• CONAD - Consorzio Nazionale Dettaglianti Scrl
• Esselunga SpA
• Selex Gruppo Commerciale SpA
• Gruppo Eurospin
• Crai Secom SpA
• Organización Soriana SAB de CV
• Grupo Comercial Chedraui Sa de CV
• Controladora Comercial Mexicana SAB de CV
• Farmacias Similares SA de CV
• Corporativo Fragua Sa de CV
• SM Retail Inc
• Puregold Price Club Inc
• Rustan Group of Cos
• Seven & I Holdings Co Ltd
• Hutchison Whampoa Ltd
• San Miguel Corp
• Magnit OAO
• X5 Retail Group NV
• Dixy Group OAO
• Lenta OOO
• M Video OAO
• DNS Group
• Shoprite Holdings Ltd
• Pick 'n' Pay Stores Ltd
• Internationale Spar Centrale BV
• Woolworths Holdings Ltd (South Africa)
• Tesco Plc
• Central Retail Corp
• Home Product Center PCL
• Mall Group Co Ltd, The
• Charoen Pokphand Group
• Consumer Co-operative Union (CCU)
• Landmark Group
• Emke Group
• Damas International Ltd
• T Choithram & Sons
• Sharaf DG LLC
• Associated British Foods Plc
• Next Plc
• J Sainsbury Plc
• TJX Cos Inc, The
• Wm Morrison Supermakets Plc
• Kroger Co
• Target Corp
• Albertson's Inc

Reasons to buy

• Comprehensive understanding of the dynamics of the gift card and incentive card markets: Recognise the opportunities in the market, the main drivers and trends, and the five-year projection for Global gift and incentive cards.
• Create strategies tailored to the market: To create your gift card strategy, identify growth categories and target particular opportunities across consumer segments and occasions; evaluate important trends and risks unique to your market.
• Learn about the Global attitudes and behaviours of consumers: Increase ROI by understanding how consumer attitudes and behaviours are evolving. With gift cards, you may obtain comprehensive information about retail spending for both corporate and retail customers.
• Six key performance indicators (KPIs) provide a comprehensive view: the quantity of cards in circulation, load value, unused value, average purchase value, average value per transaction, and transaction value.
• Distribution channel insights: Recognise the differences in gift card sales across online and offline channels as well as between first-party and third-party sales.