A new report published by Allied Market Research, titled, “Gift cards Market by Card Type, and End User: Opportunity Analysis and Industry Forecast, 2020–2027,” projects that the global gift cards market size was valued at $619.25 billion in 2019, and is projected to reach $1,922.87 billion by 2027, growing at a CAGR of 14.9% from 2020 to 2027. North America is the highest revenue contributor across the globe; owing to increase in government initiatives for the adoption of digital payments alternatives for cash in many sectors such as hospitality, banking, corporate institutions, and retailers.
Technological innovations in product offerings, rise in adoption of digital gift cards by the retail industry in the U.S. and Canada and promotion of gift card programs through omnichannel, provides gift cards that can be availed through store locations, offering online ordering with physical card delivery, online app/mobile app ordering with digital delivery and high adoption of smartphones are driving the gifts card market growth. Furthermore, North America has one of the most advanced and well-established payment infrastructures globally, which has been driving the gift cards market trends in the region. Moreover, the gift card vendors have started investing in Asia-Pacific region, owing to improved ICT infrastructure in majority of the countries such as China, India, Malaysia, Australia, and Japan, which is creating lucrative opportunities for the gift cards market in Asia-Pacific region.
Gift cards have become more innovative with the rapid evolution of smart phones. The use of modern technology and marketing strategies has created different ways for gift card lovers and smartphone users to integrate everything into one convenient package. The increased adoption of smart phones is expected to boost the gift cards market by offering flexible & convenient way of payment for the customers. For instance, Gyft that is available on iPhone and Android is one of the most popular solutions. Users can load their gift cards into the app and use whenever they’re out shopping. In addition, occasion-based gifting, personalized gifting, festive season gifting, and corporate gifting support the growth. Moreover, the presence of number of e-commerce giants such Amazon, e-bay, and Alibaba has also been impacting the gift cards market growth in a positive manner.
The closed loop gift card segment is expected to garner a significant share during the forecast period. As the closed loop gift cards can be used only at one store or with one corporate brand, it ensures that the recipients returning business them in the future. However, the open loop prepaid card segment is expected to grow at the highest rate during the forecast period, owing to its wider acceptance in every place such as general purpose cards. By end user, the retail establishments segment accounted for the major share in global gift cards industry in the recent years.
Key Findings Of The Study
By card type, the open loop gift card segment is expected to attain the highest CAGR during the forecast period.
By end user, the retail establishments segment accounted for the highest gift cards market share in 2019.
By region, North America generated the highest revenue in 2019.
By region, Asia-Pacific is expected to attain the highest CAGR during the forecast period.
The major companies profiled in the gift cards market include Amazon.com, Inc., American Express, Blackhawk Network Holdings, Inc., First Data Corporation, Fiserv, Inc., Givex Corporation, InComm Inc., NGC US, LLC, Qwikcilver Solutions Pvt Ltd, and Paytronix Systems, Inc.