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A03996 | Pages: 250 | Charts: 69 | Tables: 176 |
The global gift cards market was valued at $950.86 billion in 2024, and is projected to reach $2,290.7 billion by 2034, growing at a CAGR of 9.0% from 2025 to 2034. The rising use of smartphones, digitalization, expansion of e-commerce, and contactless payments, enabling instant, personalized, and global gifting, enhancing convenience for consumers and strategies for businesses, contribute to growth of the market.
Market Dynamics & Insights
- The gift cards industry in Asia-Pacific held a significant share of 38% in 2024.
- By card type, the close-looped card segment dominated the segment in the market, accounting for the revenue share of 60% in 2024.
- By end user, the individual segment dominated the industry in 2024 and accounted for the largest revenue share of 62%.
- By form, the physical card segment dominated the market, accounting for 60% in 2024.
Market Size & Future Outlook
- 2024 Market Size: $950.86 Billion
- 2034 Projected Market Size: $2,290.7 Billion
- CAGR (2025-2034): 9.0%
- Asia-Pacific: dominated the market in 2024
- LAMEA: Fastest growing market
A gift card is a prepaid card loaded with a specific monetary value, which can be used by the recipient to purchase goods or services, typically at a specific retailer or online store. It is a popular gift option as it allows the recipient to choose what they want from the designated store or platform. Many gift cards are for use at a single retailer, or a specific group of retailers owned by the same company. Some gift cards, often issued by banks or payment processors, can be used at a wider range of merchants. These are generally redeemable only for purchases at the relevant retail premises and cannot be cashed out, and in some situations may be subject to an expiry date or fees.
Key Takeaways:
- By Card Type, the close-looped card segment held the largest share in the gift cards market for 2024.
- By End User, the individual segment held the largest share in the gift cards market for 2024.
- By Form, the physical card segment held the largest share in the gift cards market for 2024.
- Region-wise, Asia-Pacific held the largest share for gift cards market in 2024. However, LAMEA is expected to witness the highest CAGR during the forecast period.
Factors such as the rise in adoption of digital payment and expansion of e-commerce sector positively impact the growth of the gift card market. In addition, the increase in corporate gifting trends, especially during festive seasons and employee recognition programs, is expected to fuel the growth of the market during the forecast period. Furthermore, the surge in the adoption of personalized and customizable gift cards, addressing individual preferences and enhancing the gifting experience, is providing lucrative growth opportunities for the market during the forecast period. Moreover, the integration of advanced technologies such as AI and blockchain for enhanced security and tracking of gift cards, along with the growing demand from millennials and Gen Z consumers, creates lucrative opportunities for growth of the gift cards market.
The gift card market is segmented into card type, end-user, form, and region. On the basis of cart type, the gift cards market is divided into closed-loop card and open-loop card. By end-user, the gift cards market is classified into individual and businesses/corporates. As per form, the gift cards market is bifurcated into physical card and digital card. Region wise, the gift cards market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
On the basis of card type, the global gift cards market share was dominated by the closed-loop card segment in 2024 and is expected to maintain its dominance in the upcoming years, owing to the increase in the the integration of closed-loop cards across both in-store and online platforms, enabling a seamless shopping experience. In addition, there is a growing trend toward incorporating gift cards with mobile wallets such as Apple Pay and Google Wallet, aligning with the digital preferences of modern consumers. However, the open-loop card segment is expected to experience the highest growth during the gift cards market forecast period. This segment is experiencing increase in consumers' preference for the flexibility of open-loop cards that are not restricted to a single brand, allowing for greater choice and convenience.
Region wise, Asia-Pacific dominated the gift cared market share in 2024. This is due to the widespread use of smartphones, increase in internet penetration, and government-led initiatives promoting cashless economies in countries such as India, China, and Indonesia driving the demand for gift cards, contributing significantly to the region’s market growth. However, LAMEA is expected to experience the fastest growth during the forecast period. The region is experiencing increase in the adoption of digital payment systems and increasing internet and smartphone penetration, presenting numerous opportunities for retailers, fintech companies, and corporate gifting solution providers to tap into emerging consumer segments, which is expected to support the growth of the gift cards market in the region.
The report analyzes the profiles of key players operating in the gift cards market include Amazon.com Inc., Walmart Inc., Fiserv, Inc., InComm Payments LLC, Shift4 Payments, LLC, Qwikcilver Solutions Pvt Ltd., PayPal, Inc., American Express Company, Blackhawk Network, Starbucks Corporation, Sephora USA, Inc., Target Brands, Inc., Visa Inc., Mastercard, Valve Corporation, Best Buy, EBIXCASH WORLD MONEY INDIA Ltd, and Home Depot. These players have adopted various strategies such as strategic partnerships and collaborations, mergers and acquisitions, product innovation, geographic expansion, and the enhancement of digital platforms, and strengthen their market presence in the gift cards industry.
Rise in adoption of digital payment
Rise in adoption of digital payment, including mobile wallets and contactless transactions, is a significant factor driving the growth of the gift card market. The increase in the demand for convenience and speed offered by digital payments, allowing consumers to quickly purchase and redeem gift cards without the need for physical cash or cards, drives the growth of the market. In addition, the surge in e-commerce and online shopping has led consumers to opt for digital gift cards as a preferred gifting option, which contributes toward gift cards market growth. Consumers are increasingly favoring E-gift card platforms for their ease of use and instant delivery, enhancing the overall gift cards market outlook. Furthermore, the upsurge in the integration of gift cards with popular mobile wallets and apps has simplified the user experience, making digital gift card storage, access, and redemption more seamless and convenient for consumers. This is expected to fuel the growth of the gift cards market.
Moreover, businesses are increasingly adopting digital gift cards for employee rewards and customer loyalty programs, aligning with the growing preference for seamless, contactless experiences and favoring digital payment modes. In addition, continuous innovations in payment technologies, including blockchain and NFC, have enhanced the efficiency and appeal of digital payments, making digital gift cards more secure, accessible, and attractive to both consumers and businesses. For instance, in April 2025, Blackhawk Network (BHN) launched a new suite of exclusive branded payment services designed to help brands build, manage, and scale their payment programs more effectively. These services aim to enhance customer engagement and loyalty by offering tailored solutions across digital gifting, prepaid cards, and branded payment platforms. BHN’s innovation reflects its commitment to transforming how businesses connect with consumers through flexible and impactful payment experiences. This is expected to further accelerate the adoption of digital gift cards by providing businesses with more versatile and scalable tools to engage customers, strengthen brand loyalty, and drive repeat purchases in an increasingly digital-first economy. By focusing on digital gifting and prepaid card solutions, BHN is redefining consumer engagement and brand loyalty strategies, thus positively impacting the gift cards market size.
Limited awareness in emerging markets
The major challenge for the growth of the global gift card market is limited awareness regarding the benefits and usage of gift cards in emerging markets. While gift cards have gained significant popularity in developed countries due to their convenience, flexibility, and ability to drive customer loyalty, many consumers and businesses in emerging economies remain unfamiliar with how they work and the value they can offer. This lack of awareness often stems from limited exposure to digital financial tools, lower levels of internet penetration, and a general preference for cash-based transactions, which restrain the growth of the gift cards industry. Moreover, a significant portion of the population in these regions may not have access to banking services or digital wallets, which further restricts the adoption of gift cards. In addition, many small and medium-sized enterprises (SMEs) in emerging markets may not yet understand how gift card programs can help increase customer engagement, boost sales, and improve brand visibility. Retailers might also be hesitant to invest in the infrastructure or technology required to support gift card systems due to cost concerns or lack of technical expertise. Cultural factors and trust issues related to prepaid financial products can also hinder adoption, as many consumers may be wary of non-traditional forms of spending, impeding the growth of the gift cards market. Addressing these barriers requires targeted awareness campaigns, government support, and partnerships with local financial institutions to promote digital financial literacy.
Personalized and customizable gift cards
The increase in the adoption of personalized and customizable gift cards presents a significant gift cards market opportunity to enhance customer engagement, boost brand loyalty, and differentiate offerings by addressing to individual preferences, driving higher sales and repeat usage. As consumers increasingly seek unique and meaningful gifting experiences, traditional gift cards are being replaced by options that allow personalization through custom messages, images, and designs. The increase in technological advancement such as mobile apps, digital wallets, and blockchain technology enhancing the security, accessibility, and convenience of gift cards presents remunerative growth opportunities for gift cards market growth. Advanced customization tools allow users to personalize cards with ease, while integration with e-commerce platforms streamlines the purchasing and redemption processes. In addition, the surge in integrating technologies such as artificial intelligence and data analytics enables businesses to offer targeted recommendations and personalized experiences, boosting customer engagement and loyalty.
Moreover, the upsurge in use of personalized gift cards in the corporate sector serve as effective incentives and rewards, incorporating company branding alongside personal messages to strengthen relationships with employees, clients, and partners. This trend creates a niche market focused on customizable corporate gifting solutions tailored to business requirements. In addition, retailers are capitalizing on this trend by integrating personalized gift cards into their e-commerce and omnichannel platforms, aligning customization options with special occasions such as birthdays, holidays, and anniversaries to boost sales and customer loyalty, creating numerous opportunities for the growth of the gift cards market. For instance, in December 2024, On Me secured a five-year partnership with Mastercard and raised $1.7 million in venture capital to develop a tailored digital gift card platform. Unlike traditional single-brand cards, On Me’s gift cards are themed around interests or hobbies such as running or cooking and can be redeemed at multiple relevant retailers like Nike or Reebok. These all-digital cards offer personalization features such as videos and GIFs, and leverage open-loop restricted authorization networks, allowing broader but controlled usage. The platform also integrates security features like two-factor authentication and mobile encryption to reduce fraud, aiming to modernize and personalize the gifting experience. This is expected to transform corporate gifting by offering more personalized, secure, and flexible options that boost engagement and satisfaction, supporting gift cards market expansion.
Key Market Segments
Key Market Players