Digital Gift Card Market Report 2025

The digital gift card market size has grown rapidly in recent years. It will grow from $493.12 billion in 2024 to $583.34 billion in 2025 at a compound annual growth rate (CAGR) of 18.3%. The growth in the historic period can be attributed to rise of mobile payments, contactless payments, increased gifting culture, social media integration, seasonal promotions and holidays.

The digital gift card market size is expected to see rapid growth in the next few years. It will grow to $1.08 trillion in 2029 at a compound annual growth rate (CAGR) of 16.9%. The growth in the forecast period can be attributed to enhanced personalization features, environmental sustainability, innovative redemption options, cross-platform compatibility, expansion in emerging markets. Major trends in the forecast period include mobile app integration, subscription-based gifting services, augmented reality (AR) experiences, blockchain for digital gift security, corporate gifting programs.

The increasing awareness of digital payments is anticipated to drive the growth of the digital gift card market in the coming years. Digital payments refer to transactions made through digital or internet channels without the physical exchange of cash. Gift cards are rapidly purchased and utilized at key businesses, including grocery stores and online retailers, serving as a popular digital and contactless payment method. The ease of sending and using digital gift cards has contributed to their rising popularity. For example, in January 2024, a report from the European Central Bank indicated that in the first half of 2023, the euro area experienced a 10.1% increase in non-cash payment transactions, totaling 67 billion, despite a 4.5% decrease in the overall value to €111.4 trillion compared to the same period in 2022. Thus, the growing awareness of digital payments is a significant factor propelling the digital gift card market.

The rapid expansion of e-commerce activities is projected to boost the growth of the digital gift card market in the future. E-commerce encompasses online buying and selling, digital payments, and various transaction models that have transformed commerce through the internet. This growth in e-commerce is driven by increased internet access, the convenience of online shopping, and changing consumer preferences for digital transactions. Digital gift cards are becoming increasingly popular in e-commerce as a convenient and flexible gifting option, allowing consumers to easily purchase and send them online while enabling recipients to select their desired products or services. For example, in February 2024, a report from the U.S. Census Bureau, part of the United States Department of Commerce, indicated that total e-commerce sales in the U.S. reached an estimated $1.11 trillion in 2023, representing a 7.6% increase compared to 2022. Additionally, in November 2023, a report from the International Trade Administration, a U.S. Department of Commerce agency, stated that the UK holds the world's third-largest e-commerce market after China, with e-commerce revenues in the UK projected to grow at an annual average rate of 12.6% by 2025. Thus, the rapid growth of e-commerce activities is expected to drive the expansion of the digital gift card market.

Product innovation is a significant trend gaining traction in the digital gift card market. Leading companies in this space are introducing new technologies, such as enabling customers to convert cryptocurrency into gift cards for their favorite retailers and implementing tracking systems to prevent cards from going missing. For example, in June 2023, Codego, an Italy-based fintech firm specializing in financial solutions, launched crypto gift cards - a revolutionary product that combines traditional gifting with the modern digital asset landscape. These innovative gift cards allow users to easily gift digital assets like Bitcoin and Ethereum to their loved ones. The process involves purchasing the gift cards online or at select retail locations, each containing a unique code linked to a specific cryptocurrency value. Recipients can redeem these cards using the Codego Giftcard app, which allows them to effortlessly track their digital asset balance.

Prominent companies in the digital gift card market are developing innovating solutions, such as network-level gift card, to boost digital commerce during the festive season. A network-level gift card is a type of digital gift card that operates on a specific network or platform, rather than being tied to a single retailer or brand. September 2023 saw the ONDC Network Gift Card powered by RuPay Network, launched by ONDC, aiming to enhance digital commerce during festivities. This card's unique feature allows purchases across various ONDC-enabled buyer applications, promoting increased transactions and engagement within the digital gift card market.

In December 2023, Ackroo, a Canada-based cloud-based marketing platform that aids businesses in managing loyalty, gift cards, and promotional transactions, acquired GiftFly's eGift card business for a $750,000 USD amount. This deal significantly bolsters market expansion, product enhancement, and strategic focus, catalyzing growth and development in the digital gift card market. GiftFly is a New York City-based company that provides eGift card platforms for small to medium-sized businesses.

Major companies operating in the digital gift card market include Walmart Inc., Amazon.com Inc., Target Brands Inc., American Express Company, PayPal Holdings Inc., Fiserv Inc., Loop Commerce Inc., Blackhawk Network Holdings Inc., InComm Payments, Apple Inc., First Data Corporation, Treatful Inc., Stored Value Solutions, Prezzee, Givex Corporation, Yiftee Inc., Qwikcilver Solutions Pvt Ltd, Tango Card, Giftango Corporation, Buyatab Online Inc., Paytronix Systems Inc., GiftbitInc, GiftRocket Inc., eGifter LLC, Giftogram Inc., Giftly Inc., National Gift Card Group, SVM Global Limited, Giveter Inc., The Gift Card Café LLC, Eagle Eye Solutions Group plc.

North America was the largest region in the digital gift card market share in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the digital gift card market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the digital gift card market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Digital gift cards are electronic versions used for payments or purchases at specific stores or businesses.

Digital gift cards possess two primary functional attributes such as open-loop and closed-loop cards. Open-loop cards offer recipients versatility, enabling their use at eateries, retail outlets (clothing, supermarkets), and various locations, even for one-time expenses. Their compatibility with diverse credit card systems allows for use across multiple establishments. These cards serve both business-to-business (B2B) and business-to-consumer (B2C) purposes, finding application in consumer goods, health and wellness, restaurants and bars, travel and tourism, media and entertainment, among other sectors.

The digital gift cards market research report is one of a series of new reports that provides digital gift cards market statistics, including digital gift cards industry global market size, regional shares, competitors with a digital gift cards market share, detailed digital gift cards market segments, market trends and opportunities, and any further data you may need to thrive in the digital gift cards industry. This anomaly detection market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The digital gift cards market consists of sales of employee gift card, incentive card, corporate prize card, visa e-gift card, amazon e-gift card, best buy e-gift card, apple e-gift card, google play e-gift card. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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