Gift Card Market Set to Hit US$1,906.2 Bn by 2032 with Robust 15.1% CAGR Growth

The global gift card market is witnessing robust expansion, fueled by rising digital payment adoption, the rapid growth of e-commerce, and increasing corporate use of prepaid gifting solutions. Gift cards have evolved into a preferred choice for both personal gifting and corporate reward programs due to their convenience, flexibility, and seamless integration with digital ecosystems. As consumers shift toward cashless transactions and personalized gifting options, the gift card industry is gaining significant momentum across the retail, hospitality, and financial sectors.

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Digital innovation is transforming the gift card landscape,
with mobile wallets, contactless transactions, and customizable e-gifting options enhancing user experience. Retailers and businesses are leveraging gift cards as strategic tools for customer engagement, loyalty programs, and brand promotion, further driving market demand.

According to Persistence Market Research, the global gift card market size is likely to value US$712.5 billion in 2025 and reach US$1,906.2 billion by 2032, growing at a CAGR of 15.1% during the forecast period from 2025 to 2032.
The market's rapid growth is driven by the surging popularity of digital gift cards, booming e-commerce penetration, expansion of retail networks, and widespread corporate adoption. As gifting habits evolve and digital convenience becomes a priority, the gift card industry continues to gain new opportunities across B2B and B2C segments.

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Key Market Drivers

Digitalization of Payments
The shift toward digital and contactless payments is propelling demand for both physical and digital gift cards. Mobile app-based redemption, instant delivery, and secure payment processing make digital gift cards attractive for tech-savvy consumers and online shoppers.

Growth of E-commerce Platforms
E-commerce giants and retail brands are increasingly offering personalized, theme-based, and multi-brand gift cards to enhance customer experience. Online retail gift cards remain one of the most popular options for holiday and seasonal shopping due to convenience and universal appeal.

Corporate Incentive Programs
Corporates are adopting gift cards as cost-effective solutions for employee recognition, performance rewards, festive gifting, and customer loyalty programs. Their flexibility and ease of bulk distribution make them ideal for large-scale corporate gifting.

Rising Consumer Preference for Personalized Gifting
Gift cards provide recipients flexibility to choose their preferred products or experiences. Customizable themes, digital greetings, and branded card options are enhancing gifting experiences across occasions.

Integration with Loyalty & Reward Systems
Retailers and financial institutions are incorporating gift cards into loyalty ecosystems to attract and retain customers. These cards serve as promotional tools, boosting repeat purchases and creating long-term customer relationships.

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Market Challenges

Despite strong growth prospects, the gift card market faces certain limitations:
• Security Concerns: Fraudulent activities like card cloning, phishing, and unauthorized transactions can impact consumer trust.
• Lack of Awareness in Developing Regions: Limited knowledge about digital gift cards and online redemption restrains growth in emerging markets.
• Regulatory Variations: Different countries have unique laws regarding expiration dates, fees, and usage, complicating global expansion.
• Inactivity Fees & Hidden Charges: Some consumers hesitate due to additional fees associated with certain prepaid cards.
Addressing these challenges requires improved cybersecurity, regulatory compliance, and customer education initiatives.

Market Segmentation

By Merchant

Restaurants
Department Stores
Grocery Stores
Supermarkets/Hypermarkets
Discount Stores
Coffee Shops
Entertainment
Salons/Spa
Book Store
Visa/Master Card/American Express Gift Card
Others

By Card Type

Physical Gift Cards
Open Loop Gift Cards
Closed Loop Gift Cards
E-Gifting

By Price Range

High (Above US$ 400)
Medium (US$ 200-400)
Low (Below US$ 200)

By Sales Channel

Online
Offline

By End-user

Business
Small and Medium Enterprises
Large Enterprises
Individuals

By Region

North America
Europe
East Asia
South Asia and Oceania
Latin America
Middle East and Africa

Regional Insights

North America
North America leads the global market due to high digital payment penetration, advanced retail ecosystems, and widespread corporate usage. Holiday seasons generate substantial demand for both physical and e-gift cards.
Europe
Europe exhibits strong adoption across retail and hospitality sectors. Corporate gifting and digital loyalty programs significantly contribute to market growth, especially in the UK, Germany, and France.
Asia Pacific
Asia Pacific is projected to witness the fastest growth, supported by rising e-commerce adoption, a young digital consumer base, and mass smartphone usage. China and India are key growth engines.
Latin America
Increasing financial inclusion, expanding retail chains, and growing digital literacy are fueling steady growth across Brazil, Mexico, and Chile.
Middle East & Africa
Rising tourism, expansion of retail malls, and the increasing use of prepaid payment instruments are creating new opportunities in the GCC and African markets.

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Competitive Landscape

The gift card market is moderately competitive, featuring a mix of global payment networks, retail giants, and digital gift card providers. Leading companies are focusing on mobile integration, cross-border gifting, security enhancements, and multi-brand card offerings.

Major players include:

• Amazon.com, Inc.
• Walmart, Inc.
• Target Corporation
• Starbucks Corporation
• Apple Inc.
• Tesco PLC
• Blackhawk Network
• InComm Payments
• Google LLC
• PayPal Holdings, Inc.

Companies emphasize strategic partnerships, digital platform expansion, and AI-powered personalization to strengthen their foothold in the global market.

Key Trends Shaping the Market

Rise of E-Gifting & Mobile Wallet Integration
Smartphone-based e-gifting, QR-code redemption, and wallet-connected gift cards are becoming mainstream.
Growth of Multi-Brand & Experience-Based Cards
Experience-oriented cards for travel, dining, and entertainment are gaining popularity among younger consumers.

AI & Data Analytics Enhancing Personalization
Retailers are utilizing AI-driven insights for personalized recommendations, targeted promotions, and customer reward management.

Eco-Friendly & Digital-Only Solutions
Brands are shifting from plastic cards to digital formats to promote sustainability and reduce production costs.
Expansion into Subscription & Membership Services
Gift cards bundled with subscriptions (OTT, gaming, fitness apps) are emerging as top choices among digital-native consumers.

Future Outlook

The future of the gift card market is promising, driven by widespread digital transformation, rising consumer preference for flexible gifting, and expanding global retail and e-commerce networks. AI-powered personalization, secure digital platforms, and cross-border e-gifting will redefine the market landscape.

As businesses integrate gift cards into loyalty and customer engagement strategies, demand will continue to escalate across consumer and corporate segments. The surge in digital payments and the rise of omnichannel retail will further accelerate market penetration.

According to Persistence Market Research, the global gift card market is expected to reach US$1,906.2 billion by 2032, advancing at a CAGR of 15.1% from 2025 to 2032-highlighting strong long-term potential for stakeholders across the value chain.

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