A prepaid digital wallet, such as digital gift card, contains a set amount of money, which is utilized to make purchases. The minimum and maximum loading amounts on digital gift cards are $10 and $500, respectively. Digital gift cards are used to cover a portion of a transaction via mobile banking, debit, or credit to balance the cost. Many digital gift cards are registered online as a safety measure to reduce the risk of losses; this enables the remaining amount to be tracked and frozen in the event that a card is misplaced. Digital gift cards are easier to track and offer greater protection than cash, helping to prevent fraudulent transactions.
The growth of the global digital gift card market is majorly driven by increase in use of cutting-edge technology in the payments industry and rise in global awareness of digital payments. The market for gift cards is further fueled by surge in penetration of smartphones and increase in popularity of gift cards among businesses and financial institutions. However, gift card fraud issues such as refund fraud, card number theft, and physical tampering restrain the industry expansion. On the contrary, it is anticipated that in the next years, the market would benefit greatly from technological advancements and spike in demand for gift cards originating from developing nations. Furthermore, rise in corporate organizations' preference for digital gift cards over cash when rewarding their employees supports the market expansion. In addition, high growth potential in the developing countries such as China and India is anticipated to open new avenues for the market expansion during the forecast period.
Furthermore, the key factors that impact the growth of the global digital gift card market is acceptance of smartphones and increase in demand for advanced payment options. However, security issues affect the market growth to some extent. Conversely, increased enthusiasm in revolutionary products is expected to influence the market growth during the forecast period.
This report gives an in-depth profile of some key players in the digital gift card industry are Amazon.com, Inc., Apple Inc., Blackhawk Network, Fiserv, Inc., Incomm Payments Llc, Loop Commerce, Inc., NGC US, LLC., Paypal Holdings, Inc., Target Brands, Inc., and Walmart. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships, which help to drive the growth of the digital gift card industry.
Depending on channel, the digital gift card market share was dominated by the digital segment in 2022 the same segment is expected to witness the fastest growing, owing to strong internet connectivity, increase in penetration of mobile devices, and implementation of cloud computing & artificial intelligence. These advancements have made digital channels more accessible, convenient, and user-friendly, thus boosting the market growth. As online purchase continues to increase, consumers are increasingly seeking digital options that align with their online purchasing habits. Therefore, with increase in use of digital channels, the demand for digital gift cards increases simultaneously. This is attributed to the convenience provided by digital gift cards services that allow recipients to shop online or use them in online marketplaces, providing a seamless integration with the digital shopping experience.
On the basis of region, North America dominated the digital gift card market size in 2022, owing to rise in demand for digital gift cards. Due to rapid digitization and surge in adoption of smart devices, North America has a strong potential for growth. Additionally, the growing e-commerce industry has sparked a rise in the use of digital gift cards to offer distinctive and alluring product offerings. However, Asia-Pacific is expected to be the fastest growing, owing to the increased demand during the holiday and shopping seasons, the market for digital gift cards has witnessed significant expansion in this area over the last several years. In addition, with rise in digital gift card purchasing at online shops and investments in Al to give personalized digital gift cards, the usage of digital gift cards has increased substantially and is expected to continue in China.
With the rising adoption of smartphones, the market of digital gift cards is anticipated to grow significantly as now costumers have more convenient and resident options for payment. Considering how quickly smartphones have developed, digital gift cards have gotten more inventive. Modern marketing techniques and technological advancements have produced a variety of ways for smartphone users and fans of digital gift cards to combine everything into a handy package.
The market for digital gift cards is likely to grow as more people adopt smartphones since they provide flexible and quick payment options for consumers. Furthermore, owing to the growing adoption of contemporary technology and marketing strategies, gift card consumers and smartphone users now have a choice of options for combining everything into one useful bundle. For instance, one of the most well-liked options is Gyft, which is accessible on both iPhone and Android. The app allows users to load digital gift cards that they may spend whenever they go shopping. Thus, rapid penetration of smartphones notably contribute toward the growth of the market.
Increase in demand for advanced payment options
Prepaid debit cards and digital gift cards are often considered similar. These cards are now increasingly used for payments by customers owing to their convenience, adaptability, dependability, and security. These cards are a crucial component of online payments. This explosive growth in digital commerce presents a chance for merchants and issuers to adopt an increasing number of new technologies that give their customers cutting-edge and seamless payment options. Consumers are constantly involved in shopping and pay through various ways, such as mobile apps.
For instance, a U.S.-based corporation called VISA Inc. is always developing new strategies to prevent payment disruptions and modernize how customers can pay. It offers services to customers in a variety of novel ways, such as mobile and loT via Visa Token Service, P2P via Visa Direct, and automated and optimized manual procedures via Connected Card. Such services are luring clients to accept digital payments all over the world, which propels the adoption of digital gift cards, thus fostering the growth of the global market.
The growth of the global digital gift card market is majorly driven by increase in use of cutting-edge technology in the payments industry and rise in global awareness of digital payments. The market for gift cards is further fueled by surge in penetration of smartphones and increase in popularity of gift cards among businesses and financial institutions. However, gift card fraud issues such as refund fraud, card number theft, and physical tampering restrain the industry expansion. On the contrary, it is anticipated that in the next years, the market would benefit greatly from technological advancements and spike in demand for gift cards originating from developing nations. Furthermore, rise in corporate organizations' preference for digital gift cards over cash when rewarding their employees supports the market expansion. In addition, high growth potential in the developing countries such as China and India is anticipated to open new avenues for the market expansion during the forecast period.
Furthermore, the key factors that impact the growth of the global digital gift card market is acceptance of smartphones and increase in demand for advanced payment options. However, security issues affect the market growth to some extent. Conversely, increased enthusiasm in revolutionary products is expected to influence the market growth during the forecast period.
This report gives an in-depth profile of some key players in the digital gift card industry are Amazon.com, Inc., Apple Inc., Blackhawk Network, Fiserv, Inc., Incomm Payments Llc, Loop Commerce, Inc., NGC US, LLC., Paypal Holdings, Inc., Target Brands, Inc., and Walmart. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships, which help to drive the growth of the digital gift card industry.
Depending on channel, the digital gift card market share was dominated by the digital segment in 2022 the same segment is expected to witness the fastest growing, owing to strong internet connectivity, increase in penetration of mobile devices, and implementation of cloud computing & artificial intelligence. These advancements have made digital channels more accessible, convenient, and user-friendly, thus boosting the market growth. As online purchase continues to increase, consumers are increasingly seeking digital options that align with their online purchasing habits. Therefore, with increase in use of digital channels, the demand for digital gift cards increases simultaneously. This is attributed to the convenience provided by digital gift cards services that allow recipients to shop online or use them in online marketplaces, providing a seamless integration with the digital shopping experience.
On the basis of region, North America dominated the digital gift card market size in 2022, owing to rise in demand for digital gift cards. Due to rapid digitization and surge in adoption of smart devices, North America has a strong potential for growth. Additionally, the growing e-commerce industry has sparked a rise in the use of digital gift cards to offer distinctive and alluring product offerings. However, Asia-Pacific is expected to be the fastest growing, owing to the increased demand during the holiday and shopping seasons, the market for digital gift cards has witnessed significant expansion in this area over the last several years. In addition, with rise in digital gift card purchasing at online shops and investments in Al to give personalized digital gift cards, the usage of digital gift cards has increased substantially and is expected to continue in China.
Top impacting factors
Rapid penetration of smartphonesWith the rising adoption of smartphones, the market of digital gift cards is anticipated to grow significantly as now costumers have more convenient and resident options for payment. Considering how quickly smartphones have developed, digital gift cards have gotten more inventive. Modern marketing techniques and technological advancements have produced a variety of ways for smartphone users and fans of digital gift cards to combine everything into a handy package.
The market for digital gift cards is likely to grow as more people adopt smartphones since they provide flexible and quick payment options for consumers. Furthermore, owing to the growing adoption of contemporary technology and marketing strategies, gift card consumers and smartphone users now have a choice of options for combining everything into one useful bundle. For instance, one of the most well-liked options is Gyft, which is accessible on both iPhone and Android. The app allows users to load digital gift cards that they may spend whenever they go shopping. Thus, rapid penetration of smartphones notably contribute toward the growth of the market.
Increase in demand for advanced payment options
Prepaid debit cards and digital gift cards are often considered similar. These cards are now increasingly used for payments by customers owing to their convenience, adaptability, dependability, and security. These cards are a crucial component of online payments. This explosive growth in digital commerce presents a chance for merchants and issuers to adopt an increasing number of new technologies that give their customers cutting-edge and seamless payment options. Consumers are constantly involved in shopping and pay through various ways, such as mobile apps.
For instance, a U.S.-based corporation called VISA Inc. is always developing new strategies to prevent payment disruptions and modernize how customers can pay. It offers services to customers in a variety of novel ways, such as mobile and loT via Visa Token Service, P2P via Visa Direct, and automated and optimized manual procedures via Connected Card. Such services are luring clients to accept digital payments all over the world, which propels the adoption of digital gift cards, thus fostering the growth of the global market.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the digital gift card market analysis from 2022 to 2032 to identify the prevailing digital gift card 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 digital gift card 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 digital gift card market trends, key players, market segments, application areas, and market growth strategies.
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- Industry life cycle assessment, by region
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- Historic market data
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Key Market Segments
By Channel
- Brick and Mortor
- Digital
- Digital
- E-commerce
- Loyalty
By Transaction Type
- B2B
- B2C
By Card Type
- Closed Loop
- Closed Loop
- Dining
- Fashion
- Travel
- Gaming
- Betting
- Others
- Open Loop
- Open Loop
- Visa Card
- Master Card
- Others
By Application Area
- Consumer Goods
- Health and Wellness
- Restaurants and Bars
- Travel and Tourism
- Media and Entertainment
- Others
By End Users
- Retail Establishments
- Retail Establishments
- Generation Z or Millennials
- Generation X
- Baby Boomers
- 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
- InComm Payments LLC
- Amazon.com, Inc.
- Walmart
- PayPal Holdings, Inc.
- NGC US, LLC.
- Apple Inc.
- Loop Commerce, Inc.
- Target Brands, Inc.
- Fiserv, Inc.
- Blackhawk Network
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Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: DIGITAL GIFT CARD MARKET, BY CHANNEL
CHAPTER 5: DIGITAL GIFT CARD MARKET, BY TRANSACTION TYPE
CHAPTER 6: DIGITAL GIFT CARD MARKET, BY CARD TYPE
CHAPTER 7: DIGITAL GIFT CARD MARKET, BY APPLICATION AREA
CHAPTER 8: DIGITAL GIFT CARD MARKET, BY END USERS
CHAPTER 9: DIGITAL GIFT CARD MARKET, BY REGION
CHAPTER 10: COMPETITIVE LANDSCAPE
CHAPTER 11: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to the report, the digital gift card market was valued at $341.86 billion in 2022, and is estimated to reach $1.49 trillion by 2032, growing at a CAGR of 16.3% from 2023 to 2032.A digital gift card is an electronically stored-value card that is used instead of cash at a certain retailer or business outlet to make purchases of products and services. Digital gift cards are frequently used in development plans to promote enterprises, raise brand awareness, cut down on fraud, and draw new clients. Thus, these cards are widely used in a variety of industries, including as food & beverage, retail, hospitality, and consumer electronics. Selling digital gift cards for one's own business has the primary benefit of attracting new customers. As their name suggests, digital gift cards are frequently purchased as presents. Furthermore, due to technological advancements in product offerings, rise in demand for innovative payment options, and surge in use of smartphones, the market for digital gift cards is anticipated to provide promising development prospects throughout the projected period.
Digital gift card, often referred to as gift certificate, gift voucher, and gift token, is issued by a store or bank as a marketing tool used to promote businesses, draw in new clients, raise brand awareness, lower fraud, and boost sales. The demand for digital gift cards is primarily being driven by rapid digitization coupled with surge in adoption of smart devices. Moreover, increase in use of e-gift vouchers for giving distinctive and alluring product offerings is a result of the booming e-commerce industry. In addition, despite geographical and temporal constraints, the desire for convenient and easy gifting methods is increasing due to improvement in standard of living and hectic work schedules.
Furthermore, the key factors that impact the growth of the global digital gift card market is acceptance of smartphones and increase in demand for advanced payment options. However, security issues affect the market growth to some extent. Conversely, increased enthusiasm in revolutionary products is expected to influence the market growth during the forecast period.
Depending on transaction type, the digital gift card market share is dominated by B2C segment. The same segment is expected to be the fastest growing in 2022, owing to the increasing shift toward online shopping and e-commerce. B2C companies have integrated digital gift card functionality into their online platforms, making it easier for customers to purchase and redeem gift cards directly on their websites or mobile apps. This seamless integration enhances the customer experience and encourages gift card usage.
On the basis of region, North America dominated the digital gift card market size in 2022, owing to rise in demand for digital gift cards. Due to rapid digitization and surge in adoption of smart devices, North America has a strong potential for growth. Additionally, the growing e-commerce industry has sparked a rise in the use of digital gift cards to offer distinctive and alluring product offerings. However, Asia-Pacific is expected to be the fastest growing, owing to the increased demand during the holiday and shopping seasons, the market for digital gift cards has witnessed significant expansion in this area over the last several years. In addition, with rise in digital gift card purchasing at online shops and investments in Al to give personalized digital gift cards, the usage of digital gift cards has increased substantially and is expected to continue in China.
The COVID-19 outbreak has shifted the preference from cash payments to digital payment; thus, the digital gift card market has experienced substantial growth. Furthermore, digital gift cards are readily available, simple to use, and flexible for purchases. In addition, the popularity of digital voucher, particularly among companies, has surged and is anticipated to continue driving growth momentum for the digital gift card sector as governments implemented lockdown to stop the spread of virus. Furthermore, firms are using digital gift cards more frequently as a perk for their staff and business partners because of the widespread adoption of work-from-home strategies across a variety of industry verticals. Therefore, organizations and corporate entities have significantly shifted toward digitalized gifting models throughout the pandemic crisis to maintain regulatory COVID-19 criteria. Several nations have enforced lockdowns and closures of retail establishments and other physical sites offering utility services in accordance with COVID-19. As a result, customers' preferences have changed with regard to making payments. Thus, it is projected to increase in the volume of best digital gift cards. In addition, consumers are delaying their holiday vacation plans and looking for substitutes for customary get-togethers & gift-giving. In addition, amid the pandemic crisis, issues such as the demand for less expensive gift options and the spike in plans to shop online rather than in stores were the key consumer trends.
Key findings of the study
By channel, the brick and motar segment led the digital gift card market trends in terms of revenue in 2022.By transaction type, the B2C segment led the digital gift card market in terms of revenue in 2022.
By end user, the retail establishment segment dominated the digital gift card market growth in 2022.
By region, North America generated the highest revenue in 2022.
The key players profiled in the digital gift card market analysis are Amazon.com, Inc., Apple Inc., Blackhawk Network, Fiserv, Inc., Incomm Payments Llc, Loop Commerce, Inc., NGC US, LLC., Paypal Holdings, Inc., Target Brands, Inc., and Walmart. These players have adopted various strategies to increase their market penetration and strengthen their position in digital gift card industry.
Companies Mentioned
- InComm Payments LLC
- Amazon.com, Inc.
- Walmart
- PayPal Holdings, Inc.
- NGC US, LLC.
- Apple Inc.
- Loop Commerce, Inc.
- Target Brands, Inc.
- Fiserv, Inc.
- Blackhawk Network
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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