Market Overview:
The digital gift card market is experiencing rapid growth, driven by surge in e-commerce and online shopping, rise of mobile and contactless payments, and growing corporate adoption for incentives. According to IMARC Group's latest research publication,“ Digital Gift Card Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2025-2033 “,The global digital gift card market size reached USD 453.4 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 1,531.5 Billion by 2033, exhibiting a growth rate (CAGR) of 13.32% during 2025-2033.
This detailed analysis primarily encompasses industry size, business trends, market share, key growth factors, and regional forecasts. The report offers a comprehensive overview and integrates research findings, market assessments, and data from different sources. It also includes pivotal market dynamics like drivers and challenges, while also highlighting growth opportunities, financial insights, technological improvements, emerging trends, and innovations. Besides this, the report provides regional market evaluation, along with a competitive landscape analysis.
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Our report includes:
- Market Dynamics
- Market Trends And Market Outlook
- Competitive Analysis
- Industry Segmentation
- Strategic Recommendations
Growth Factors of the Digital Gift Card Industry
- Surge in E-Commerce and Online Shopping:
The boom in e-commerce is a huge driver for digital gift cards. People love the convenience of shopping online, and digital gift cards fit perfectly into this trend, offering instant delivery and easy redemption. With global e-commerce sales hitting $5.7 trillion recently, retailers are pushing gift cards to capture this massive market. They're not just for personal gifting-businesses use them for customer rewards and incentives. For example, Amazon and Walmart have expanded their digital gift card offerings, making them a go-to for online shoppers. Plus, government initiatives like Singapore's push for cashless payments are boosting digital transactions, including gift cards. This shift to online platforms makes digital gift cards a no-brainer for quick, hassle-free gifting, driving their popularity across the board.
- Rise of Mobile and Contactless Payments:
Mobile and contactless payments are changing how people spend, and digital gift cards are riding that wave. With over 2.8 billion mobile wallet users worldwide, consumers want fast, secure ways to pay, and digital gift cards deliver. They're easily stored in apps like Apple Pay or Google Wallet, making them super convenient. Companies like Blackhawk Network are rolling out innovations like Tap to Pay Visa Gift Cards, blending physical and digital experiences. Government programs, such as the U.S. Paycheck Protection Program, encourage digital payments, indirectly boosting gift card adoption. The ease of sending and using these cards via smartphones is a game-changer, especially for younger, tech-savvy shoppers who prefer seamless, on-the-go solutions for gifting and rewards.
- Growing Corporate Adoption for Incentives:
Businesses are jumping on digital gift cards for employee rewards and customer loyalty programs. They're versatile, easy to distribute, and loved by recipients-60% of executives say gift cards are the top choice for incentive programs. Companies like Starbucks and Target use them to boost engagement, with digital formats making distribution a breeze. For example, Blackhawk Network reports that 70% of consumers plan to buy as many or more gift cards this year, showing strong demand in both corporate and personal use. Governments in regions like the Middle East are promoting cashless economies, which supports corporate adoption of digital gift cards. This trend is fueling growth as businesses see them as a cost-effective way to motivate employees and keep customers coming back.
Trends in the Global Digital Gift Card Market
- Digital Gift Cards Overtaking Physical Cards:
Digital gift cards are quickly outpacing physical ones due to their convenience and eco-friendly appeal. They now account for 48.7% of the global gift card market, with instant delivery and no plastic waste driving their popularity. Retailers like Amazon and Apple let you send e-gift cards via email or text, perfect for last-minute gifting. In Singapore, prepaid cards integrated with digital wallets are gaining traction, with the market expected to hit $10.74 billion soon. Consumers love the speed-cards can be used instantly-and businesses save on production costs. This shift is especially big during holidays, where themed e-gift cards tied to festivals or events are becoming a go-to, making physical cards feel outdated by comparison.
- AI-Driven Personalization and Shopping:
AI is transforming digital gift cards by making them more personalized and user-friendly. Retailers use AI to suggest gift card designs or values based on shopping habits, boosting engagement. For instance, platforms like Amazon leverage AI to recommend gift cards tailored to a user's purchase history, increasing sales. Blackhawk Network notes a rise in AI-driven shopping, with 70% of consumers showing interest in personalized gifting options. This trend is huge in corporate programs, where AI helps companies pick the right gift cards for employees or clients. In regions like Europe, where digital payment adoption is high, AI enhances the gifting experience by offering customized designs or messages, making digital gift cards feel more thoughtful and driving their popularity further.
- Expansion of Cross-Border Gifting:
Cross-border gifting is a hot trend, fueled by global e-commerce and digital payment advancements. Digital gift cards make it easy to send gifts across countries without shipping hassles. For example, platforms like Amazon and Visa offer gift cards that work internationally, appealing to travelers and expats. In the Middle East, where cultural gifting traditions are strong, digital gift cards are booming, with the market valued at $11.68 billion. Government policies promoting digital payments, like those in Asia-Pacific, are making cross-border transactions smoother. Retailers are also offering multi-currency options, so recipients can shop in their local currency. This trend is perfect for today's globalized world, where people want to send meaningful gifts to loved ones far away with just a few clicks.
Leading Companies Operating in the Global Digital Gift Card Industry:
- Amazon.com Inc.
- American Express Company
- Apple Inc.
- Blackhawk Network Holdings Inc.
- First Data Corporation
- Fiserv Inc.
- Givex Corporation
- InComm Inc.
- Paytronix Systems,Inc.
- Qwikcilver Solutions Pvt Ltd (Pine Labs).
Digital Gift Card Market Report Segmentation:
By Card Type:
- Open Loop Gift Card
- Closed Loop Gift Card
Closed loop gift card represents the largest segment as it enhances loyalty among individuals by incentivizing repeat purchases.
By Business Type:
- Business to Business (B2B)
- Business to Consumer (B2C)
On the basis of the business type, the market has been bifurcated into business to business (B2B) and business to consumer (B2C).
By Application:
- Food and Beverage
- Health, Wellness and Beauty
- Apparel, Footwear and Accessories
- Books and Media Products
- Consumer Electronics
- Restaurants and Bars
- Kids Products
- Others
Based on the application, the market has been segmented into food and beverage, health, wellness and beauty, apparel, footwear and accessories, books and media products, consumer electronics, restaurants and bars, kids products, and others.
By End User:
- Retail
- Festival Celebrations
- Special Celebrations
- Self-Use
- Others
- Corporate
- Corporate Gift
- Employee Prize
- Incentive Program
Retail accounts for the largest market share due to the increasing need for enhanced convenience.
Regional Insights:
- North America (United States, Canada)
- Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
- Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
- Latin America (Brazil, Mexico, Others)
- Middle East and Africa
North America enjoys a leading position in the digital gift card market, driven by rising preferences for online shopping among individuals.
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IMARC Group is a global management consulting firm that helps the world's most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.
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