From plastic to pixel, the evolution of gift cards in the digital age is driving market growth, led by key players in the US, China, the UK, Germany, and Japan.

The gift card industry has evolved into a dynamic and rapidly growing segment of the global payments market, driven by changing consumer preferences, advancements in digital payment technologies, and the increasing appeal of flexible gifting solutions. Originally seen as a convenient and impersonal alternative to traditional gifts, gift cards have transformed into a preferred choice for both consumers and businesses, offering versatility and ease of use that appeal to a wide demographic. This evolution is largely due to the rise of the digital economy, where the convenience of online shopping and mobile payments has reshaped how people give and receive gifts. The industry now encompasses a wide variety of products, ranging from closed-loop gift cards, which can be redeemed only at specific retailers, to open-loop gift cards that can be used anywhere major payment networks like Visa and Mastercard are accepted. Additionally, the growth of e-gift cards has further accelerated this transformation, providing an instant, contactless way to send and receive gifts, especially appealing in today's fast-paced, tech-savvy world. In the retail sector, gift cards have become a powerful tool for driving sales, enhancing customer loyalty, and promoting brand engagement. Many retailers strategically place gift cards near checkout counters, capitalizing on impulse buying behavior, particularly during holiday seasons and special occasions. According to the research report, "Global Gift Card Market Outlook, 2029" published by Bonafide Research, the market is anticipated to cross USD 1300 Billion by 2029, increasing from USD 583.16 Billion in 2023. The market is expected to grow with a 14.87% CAGR from 2024 to 2029. The versatility of gift cards makes them a go-to option for shoppers looking for a quick yet thoughtful present, especially when uncertain about the recipient's preferences.

The digitalization of the gift card industry has been a key driver of its growth, with e-gift cards gaining popularity due to their convenience, instant delivery, and reduced environmental impact. E-gift cards can be purchased and sent electronically via email, SMS, or through mobile apps, catering to the growing demand for contactless, hassle-free gifting options. This shift has been accelerated by the rise of e-commerce and digital payment solutions, which have made it easier than ever for consumers to buy and redeem gift cards. Moreover, the integration of gift cards into mobile wallets like Apple Pay and Google Pay has enhanced their usability, allowing consumers to store and use their gift cards directly from their smartphones. This trend reflects the broader move towards digital-first solutions in the retail industry, driven by changing consumer behaviors and the need for streamlined, user-friendly experiences. Digital and e-gift cards, which are frequently coupled with mobile wallets, provide convenience and rapid delivery, while personalized features such as custom messages and themed graphics make them more enticing. Blockchain technology improves security and reduces fraud, and there is a visible shift toward more sustainable solutions, such as digital cards produced from eco-friendly materials. Additionally, gift cards are increasingly being employed in business incentive programs and customer loyalty schemes.

For more insights: https://www.bonafideresearch.com/product/241115901/global-gift-card-market

North America remains the largest and most mature market, driven by high consumer spending, a well-established retail infrastructure, and the widespread adoption of digital payment technologies. The United States, in particular, dominates this segment, with a strong culture of gifting and a preference for versatile gift options like gift cards, especially during holiday seasons and special occasions such as Christmas, birthdays, and corporate incentives. The region's advanced e-commerce platforms and integration of gift cards into digital wallets like Apple Pay and Google Pay have further fueled market growth, making it a leader in both physical and digital gift card sales. In Europe, the gift card market is also witnessing significant expansion, influenced by the increasing popularity of cashless transactions and the growing trend of personalized gifting. Countries like the United Kingdom, Germany, and France are at the forefront, where retailers and businesses leverage gift cards for customer loyalty programs, promotional campaigns, and employee rewards. The rise of online shopping has spurred the demand for e-gift cards in Europe, appealing to tech-savvy consumers who seek convenient, instant gifting solutions. Additionally, the region's diverse retail landscape, including high-end luxury stores and local boutique shops, offers a wide array of closed-loop gift card options tailored to specific consumer preferences. The Asia-Pacific region is emerging as a dynamic and rapidly growing market for gift cards, driven by increasing urbanization, rising disposable incomes, and the proliferation of digital payment platforms. Countries like China, India, and Japan are leading this growth, with a surge in the use of e-gift cards as part of the broader digital transformation in the region.

For more insights: https://www.bonafideresearch.com/product/241115903/europe-gift-card-market

Closed-loop gift cards are issued by specific retailers or brands and can only be redeemed at those particular stores or for products and services offered by the brand. These cards are highly popular in the retail sector, as they provide businesses with an effective way to encourage brand loyalty, drive repeat visits, and promote specific products or services. The closed-loop model also allows retailers to retain control over the customer experience, from the initial card purchase to its redemption, making them a key driver of consumer engagement and retention. In regions like North America and Europe, closed-loop gift cards are commonly found in supermarkets, department stores, and online retailers, with consumers using them for a wide variety of occasions, from holidays to corporate rewards. Medium-price range gift cards, which typically range from $20 to $100, are the most commonly purchased and used across the global market. These cards strike a balance between affordability and versatility, offering consumers the flexibility to select a wide variety of products and services without the high price tag associated with premium options. Medium-value gift cards are highly popular in the retail, entertainment, and restaurant sectors, with brands offering cards for shopping, dining, or entertainment experiences such as movie tickets and theme park passes. This price range is ideal for birthday gifts, holiday presents, or corporate incentives, as it appeals to a broad audience.

For more insights: https://www.bonafideresearch.com/product/241115906/middle-east-and-africa-gift-card-market

The offline gift card market remains a strong segment, particularly in physical retail settings such as supermarkets, department stores, shopping malls, and convenience stores. These traditional sales channels are where consumers often purchase gift cards in person, either as standalone items or as part of holiday promotions and impulse buys. Offline gift cards have long been a staple in the gifting culture, especially during peak shopping periods like Christmas, Mother's Day, and birthdays. Retailers strategically place gift cards near checkout counters, knowing that they are a popular choice for last-minute gifts. In addition, brick-and-mortar stores often offer exclusive gift card designs, seasonal options, and physical cards that can be wrapped and presented directly, which enhances their appeal as tangible and personal presents. Furthermore, some consumers still prefer purchasing physical gift cards due to security reasons or the desire to give a physical item, rather than a digital or virtual gift. However, the online gift card market has witnessed tremendous growth in recent years, driven by the global shift toward digital shopping and mobile payment solutions. Additionally, the growth of online retail has further boosted the popularity of gift cards, especially in the form of e-gift cards, as they provide a seamless and instant way to purchase and deliver gifts digitally. During major shopping events like Black Friday, Christmas, and seasonal promotions, retail establishments experience a surge in gift card sales, which serve as ideal gifts for a broad range of consumers. The ability to redeem gift cards across diverse categories such as fashion, home goods, and electronics also contributes to their broad appeal among various demographic groups. Retailers also capitalize on the demand for gift cards by offering them as part of loyalty programs, promotional campaigns, or as an upselling tool to enhance customer experience and retention.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Gift Card market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Regions & Countries covered in the report:
• North America (United States, Canada, Mexico)
• Europe (Germany, United Kingdom, France, Spain, Italy, Russia)
• Asia-Pacific (China, Japan, India, Australia, South Korea)
• South America (Brazil, Argentina, Colombia)
• Middle-East & Africa (UAE, Saudi Arabia, South Africa)

By Card Types
• Closed -Loop Card
• Open-loop Card

By Price Range
• High
• Medium
• Low

By Sale Channel
• Offline
• Online

By End User
• Retail Establishment
• Corporate Institution

Contact us:
Steven Thomas - Sales & Marketing Manager
E-mail: sales@bonafideresearch.com
Asia-Pacific: +91 7878231309
Europe: +44 20 8089 0049
North America: +1 201 793 8545
https://www.bonafideresearch.com/

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This release was published on openPR.