According to a new report published by Allied Market Research, titled,"Italy Gift Cards Market by Functional Attribute and Industry Vertical: Opportunity Analysis and Industry Forecast, 2018 - 2025,"the Italy gift cards market was valued at $25,761million in 2017, and is projected to reach at $84,369 million by 2025, growing at a CAGR of 16.2% from 2018 to 2025. In 2017, the retail segment accounted for the maximum share in the Italy gift cards market.
Gift card is an integrated payment solution developed to facilitate transaction at stores or businesses as an alternative to money. It is an advanced version of paper gift voucher that was earlier used to purchase products and avail various facilities. It establishes a medium that supports smooth and hassle-free purchasing procedure during entertainment, dining, retail purchases, convenience shopping, and others.
The growth of the Italy gift cards market is driven by factors such as innovation in products, high adoption rate of smartphones, and development of the e-commerce & m-commerce industries. Moreover, increase in popularity of these cards while traveling abroad is expected to boost the market growth in the future. In addition, increased spending capacity of consumers and flexibility associated with the use of these cards boost the growth of the market.
However, diverse types of fees associated with card transaction and lack of security measures as compared to credit or debit cards act as the major restraints of the market. On the contrary, high promotion and loyalty programs associated with gift cards are anticipated to fuel the consumption rate of gift cards among smartphone users, especially among online shoppers. This is anticipated to provide lucrative opportunities to the gift cards industry.
The retail dominated the Italian gift cards market in 2017, accounting for around 72.08% of the overall market revenue. The corporate institutions segment is expected to witness highest growth during the forecast period, owing to rise in demand for gift cards in the corporate institutions. This is attributed to the fact that business organizations offer incentives to employees in the form of gift cards to appreciate their contributions and achievements. Furthermore, gift cards can be used more than once, due to their partial redemption option, wherein the remaining balance can be carried over for future purchases.
Key Findings of theItaly Gift Cards Market:
The open loop segment of Italy gift cards market is projected to witness the highest CAGR of 17.2%, in terms of revenue, during the forecast period.
The retail segment accounted for 72.08% of the market share in 2017, and is expected to grow at a significant CAGR during the forecast period.
The closed loop segment is anticipated to generate the highest revenue by 2025, growing at a CAGR of 15.7%.
The key players of Italy gift cards industry profiled in the report include Amagroup S.r.l., Amazon.Com.Inc., Amilon Srl, Argentea S.r.l., Epipoli S.p.a., First Data Corporation, Ingenico Group, Prepay Technologies Ltd., SVM Global, and Vantiv (Worldpay).