A gift card is a prepaid card that can be used as an alternative to cash to make purchases at a specific store or group of stores. The card has a monetary value that can be spent on any merchandise or services offered by the retailer, up to the card's value. Once the card is fully used or the balance is depleted, it cannot be reloaded or reused. Gift cards can be physical cards, such as a plastic card that resembles a credit card, or digital cards that can be sent through email or mobile apps. They can be purchased at the retailer's store, online, or at third-party locations such as supermarkets or pharmacies. Some gift cards come with an expiration date or fees, so it's important to read the terms and conditions before purchasing or using a gift card. Additionally, some gift cards can be used online or in-store, while others may only be valid for one or the other.
Increased usage of gift cards as rewards and Incentives is a major propelling factor for the growth of gift cards market as these cards are majorly used as rewards and Incentives by various users such as corporate offices use to give these cards as rewards and Incentives to their employees. In addition, making online payments to a merchant offers gift cards as rewards. Therefore, this is a major growth factor for the market. Moreover, Increasing demand for digital gifting options and customer preference for experiences over tangible gifts are major driving factors for the gifts card market. However, security concerns pertaining to the use of gift card is a major restraining factor for the market growth as hackers and fraudsters may hack the gift card and use it for illegal purposes. Furthermore, limited acceptance of gift cards is also a major factor hampering the growth of the market. On the contrary, rising popularity of gifts card among different users Including corporate clients and individual users along with easy transferable feature of a gift card will provide major lucrative opportunities for the growth of the market
The gift card market is segmented on the basis of card type and end user. Based on card type, the market is segmented into closed-loop cards and open-loop cards. On the basis of end user, it is segmented into retail establishments and corporate institutions. By region, it is analysed across North America, Europe, Asia-Pacific, and LAMEA.
The report analyzes the profiles of key players operating in the Gift card market such as Amazon.com, Inc., American Express Company, Blackhawk Network Holdings, Inc., Fiserv, Inc., Givex Corporation, Incomm Payments, PayPal, Inc., Paytronix Systems, Inc., Qwikcilver Solutions Pvt Ltd., and Walmart Inc. These players have adopted various strategies to Increase their market penetration and strengthen their position in the Gift card market.
Increased usage of gift cards as rewards and Incentives is a major propelling factor for the growth of gift cards market as these cards are majorly used as rewards and Incentives by various users such as corporate offices use to give these cards as rewards and Incentives to their employees. In addition, making online payments to a merchant offers gift cards as rewards. Therefore, this is a major growth factor for the market. Moreover, Increasing demand for digital gifting options and customer preference for experiences over tangible gifts are major driving factors for the gifts card market. However, security concerns pertaining to the use of gift card is a major restraining factor for the market growth as hackers and fraudsters may hack the gift card and use it for illegal purposes. Furthermore, limited acceptance of gift cards is also a major factor hampering the growth of the market. On the contrary, rising popularity of gifts card among different users Including corporate clients and individual users along with easy transferable feature of a gift card will provide major lucrative opportunities for the growth of the market
The gift card market is segmented on the basis of card type and end user. Based on card type, the market is segmented into closed-loop cards and open-loop cards. On the basis of end user, it is segmented into retail establishments and corporate institutions. By region, it is analysed across North America, Europe, Asia-Pacific, and LAMEA.
The report analyzes the profiles of key players operating in the Gift card market such as Amazon.com, Inc., American Express Company, Blackhawk Network Holdings, Inc., Fiserv, Inc., Givex Corporation, Incomm Payments, PayPal, Inc., Paytronix Systems, Inc., Qwikcilver Solutions Pvt Ltd., and Walmart Inc. These players have adopted various strategies to Increase their market penetration and strengthen their position in the Gift card market.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the gift cards market analysis from 2022 to 2032 to identify the prevailing gift cards market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the gift cards market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report Includes the analysis of the regional as well as global gift cards market trends, key players, market segments, application areas, and market growth strategies.
Key Market Segments
By Card Type
- Closed-loop Card
- Open-loop Card
By End User
- Retail Establishment
- Corporate Institutions
By Region
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Netherlands
- Spain
- Italy
- Nordic Countries
- Rest of Europe
- Asia-Pacific
- China
- India
- Japan
- Australia
- South Korea
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
Key Market Players
- Amazon.com Inc.
- American Express Company
- Blackhawk Network
- Fiserv, Inc.
- Givex Corporation
- Incomm Payments LLC
- PayPal, Inc.
- Paytronix Systems, Inc.
- Qwikcilver Solutions Pvt Ltd.
- Walmart Inc.
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Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: GIFT CARDS MARKET, BY CARD TYPE
CHAPTER 5: GIFT CARDS MARKET, BY END USER
CHAPTER 6: GIFT CARDS MARKET, BY REGION
CHAPTER 7: COMPETITIVE LANDSCAPE
CHAPTER 8: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to a new report, titled, 'Gift Cards Market,' The gift cards market was valued at $835.21 billion in 2022, and is estimated to reach $4183.9 billion by 2032, growing at a CAGR of 17.7% from 2023 to 2032.The gift card market is likely to experience a significant growth rate of 17.7% from 2023-2032 owing to increasing market demand for closed-loop card segment.
The gift card market refers to the industry that revolves around the buying and selling of gift cards. A gift card is a prepaid stored-value card that can be used as an alternative to cash for purchases within a specific business or a group of businesses. It allows the recipient to choose their own desired items or services, within the limitations of the gift card's value and the participating merchants. Moreover, the market has experienced significant growth in recent years, driven by the convenience and flexibility of gift cards as gifts and incentives. It has become a popular choice for occasions such as birthdays, holidays, and corporate rewards. In addition, the rise of e-commerce and digital gift cards has expanded the market's reach and accessibility.
Gift cards have gained popularity, with the rise of digital and mobile technology, as they are often available in digital form, making them easy to purchase and redeem. In addition, digital gift cards often have additional features, such as the ability to track the balance and transaction history, and the option to reload the card with additional funds. These features have contributed to the growth in popularity of digital gift cards and their increase in demand. Furthermore, increased use of gift cards as rewards & incentives and consumer preference for experiences over tangible gifts are major driving factors for the gift cards market. Moreover, shift in consumer preference toward experiences, such as dining or entertainment, and in this case gift cards may be used to purchase these experiences, which leads to drives the market in the upcoming years.
However, limited acceptance of gift cards is a major factor hampering the growth of the market as gift cards issued by a specific retailer or brand are often only accepted at that retailer stores or online shop and cannot be used at other businesses. In addition, there have been instances of fraudsters creating fake websites that appear to sell legitimate gift cards, but actually steal the consumers payment information. Thus, security concerns pertaining to the use of gift cards is also a major restraining factor for the market growth. Therefore, all such factors are hampering the growth of the gift card market.
On the contrary, the increase in popularity of mobile payments has opened up new opportunities for the gift card market. As mobile gift cards may be delivered and redeemed through a smartphone, providing consumers with a convenient and easy-to-use option. Hence, this leads to provides a lucrative opportunity for the growth of the market.
The gift card market is segmented on the basis of card type, end user, and region. On the basis of card type, the market is bifurcated into closed-loop cards and open-loop cards. On the basis of end user, it is bifurcated into retail establishments and corporate institutions. Based on region, it is analyzed across North America (the U.S., and Canada), Europe (UK, Germany, France, Italy, Spain, and rest of Europe), Asia-Pacific (China, India, Japan, Australia, South Korea and rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa).
The report analyzes the profiles of key players operating in the gift card market such as Amazon.com, Inc., American Express Company, Blackhawk Network Holdings, Inc., Fiserv, Inc., Givex Corporation, InComm Payments, PayPal, Inc., Paytronix Systems, Inc., Qwikcilver Solutions Pvt Ltd., and Walmart Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the gift card market.
Furthermore, market players are adopting strategies like partnership for enhancing their services in the market and improving customer satisfaction. For instance, in November 2021, QwikCilver entered into a strategic partnership with Airlink. Under this partnership, Airlink also launched gift cards for its customers that are redeemable against air tickets and several other services on its official website. Therefore, such strategy will help to grow the gift card market in the upcoming years.
Key Market Insights
- By card type, the closed-loop card segment was the highest revenue contributor to the market, and is estimated to reach $2425.58 billion by 2032, with a CAGR of 15.9 %. However, the open-loop card segment is estimated to be the fastest growing segment with the CAGR of 20.8% during the forecast period.
- By end user, the retail establishment segment was the highest revenue contributor to the market, and is estimated to reach $2629.74 billion by 2032, with a CAGR of 16.6 %. However, the corporate institutions segment is estimated to be the fastest growing segment with the CAGR of 20.1% during the forecast period.
- Based on region, North America was the highest revenue contributor, accounting for $347.36 billion in 2022, and is estimated to reach $1187.82 billion by 2032, with a CAGR of 13.3%.
Companies Mentioned
- Amazon.com Inc.
- American Express Company
- Blackhawk Network
- Fiserv, Inc.
- Givex Corporation
- InComm Payments LLC
- PayPal, Inc.
- Paytronix Systems, Inc.
- Qwikcilver Solutions Pvt Ltd.
- Walmart Inc.
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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