Australia Gift Card and Incentive Card Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

Australia Gift Card and Incentive Card Market is poised to grow at a CAGR of greater than 8% during the forecast period. Gift card adoption in Australia has increased significantly in recent years, encompassing retail and corporate industries. Because of the pandemic, consumers have switched to online buying, which has benefited the gift card sector and pushed the expansion of digital gift cards. Corporate gifting has grown in popularity as companies use gift cards to reward and appreciate employees.

COVID-19 pandemic affected all sectors in Australia. To compensate for these losses, the NSW Government offered adults USD 100 vouchers to spend on entertainment and dining during covid in Sydney and other places under the Out & About scheme. The project cost the government USD 500 million this initiative was part of the government's effort to encourage people to buy and spend money.

Businesses have begun to recognize the value of prepaid gift cards. Gift cards can be utilized not only as a gifting option but also as a significant instrument to encourage clients to spend money at their establishment. Gift cards can also be used for refunds, returns, and credit notes, and they are an excellent promotional tool.

Karta is a disruptor, a gift card platform that aims to simplify the gift card experience by making it more accessible for merchants and consumers. It aims to remodel the gift card market to provide access to more merchants for whom it is uneconomic today and change the economic model, so revenue is not dependent on "breakage."

Australia Gift Card and Incentive Card Market Trends

Rising Digital Wallet Adoption in Australia is Driving the Market

Australians are increasingly abandoning traditional banking and payment methods in favor of digital alternatives, working from home will always be more prevalent in the workforce, and they have shifted away from using cash, increasing card and technology payments and the existing trend of doing banking online rather than in a branch continuous.

Overall, one by third of Australians with a smartphone now use digital wallets like Apple Pay, Google Pay, and Samsung Pay to make payments, a rate that has more than doubled since the previous year. This increase has likely been helped in recent years by the rising number of Australian banks that provide digital wallet integration, with nearly ninety percent of the transaction accounts being tracked in the Mozo database now offering at least one digital wallet option.

Increasing Partnerships Between Banks and Gift Card Providers Boost the Market

With the rise in customer demand for efficient and innovative gift card solutions in Australia, banking players are trying to enter the space through strategic investment and partnerships. Recently Heritage bank partnered with Blackhawk Network to support its extensive gift card portfolio in Australia, while the Commonwealth Bank partnered with Industry disruptor Karta to issue simplified gift cards. Apple pay is collaborated with major banks in Australia to offer services.

These partnerships can reimagine the shopping experiences for Australians, simplifying the purchase, delivery, and use of gift cards and enabling more businesses to participate in this market will enable customers to better support businesses.

Australia Gift Card and Incentive Card Market Competitor Analysis

The report covers major players operating in Australia's Gift Card and Incentive Card Market. In terms of market share, few major players currently dominate the market. However, with technological advancement and service innovation, domestic to international companies are increasing their market presence by securing new contracts and tapping new markets. It has major players, including Wesfarmers, Woolworths, Metcash, ALDI Group, Gift pay, etc.

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