Gift Card Market Poised for Strong Growth at 15.1% CAGR Through 2032

Introduction

The global Gift Card Market has emerged as one of the fastest-growing segments within the digital payments and retail ecosystem, driven by evolving consumer gifting preferences, rapid digitalization, and the growing acceptance of cashless payment solutions. Gift cards-available in physical and digital formats-offer flexibility, convenience, and personalization, making them an increasingly popular choice for both individual consumers and corporate buyers. They are widely used across retail, e-commerce, hospitality, entertainment, and financial services sectors.

With the global shift toward online shopping, mobile wallets, and contactless payments, gift cards have transitioned from being simple prepaid instruments to strategic tools for customer acquisition, loyalty programs, and promotional campaigns. 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 robust CAGR of 15.1% during the forecast period from 2025 to 2032.

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This report presents a comprehensive analysis of the global gift card market, highlighting key growth drivers, market dynamics, emerging trends, segmentation, competitive landscape, and future outlook shaping the industry's expansion.

➤ Market Projections and Forecast

The global gift card market is projected to witness strong double-digit growth over the forecast period, supported by the increasing adoption of digital gifting solutions across both developed and emerging economies. Market valuation is expected to expand significantly from US$712.5 billion in 2025 to US$1,906.2 billion by 2032, reflecting the growing integration of gift cards into everyday consumer spending and corporate incentive programs.

The rise of e-commerce platforms, omnichannel retail strategies, and mobile payment applications has amplified the demand for digital and e-gift cards. Additionally, the growing popularity of festive and seasonal gifting, cross-border gifting, and personalized gift experiences is expected to further accelerate market growth. Corporate adoption of gift cards as rewards, incentives, and employee recognition tools also plays a critical role in sustaining long-term demand.

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➤ Market Dynamics

Drivers of Market Growth

Rising Adoption of Digital Payments:
The global transition toward digital and mobile-based payment solutions has significantly boosted the adoption of gift cards. Integration with mobile wallets, apps, and online platforms makes digital gift cards easy to purchase, store, and redeem.

Growth of E-commerce and Omnichannel Retail:
The expansion of online retail and omnichannel shopping experiences has created strong demand for gift cards, which serve as flexible payment instruments across multiple platforms and locations.

Increasing Demand for Convenient and Personalized Gifting:
Modern consumers prefer gifting solutions that are quick, customizable, and meaningful. Gift cards allow recipients to choose products or services based on their preferences, enhancing the overall gifting experience.

Rising Corporate Use of Gift Cards:
Organizations increasingly use gift cards for employee rewards, sales incentives, customer loyalty programs, and promotional campaigns, driving bulk purchases and recurring demand.

Expansion in Emerging Markets:
Rapid urbanization, increasing disposable income, and growing smartphone penetration in emerging economies are opening new growth avenues for gift card providers.

➤ Challenges in the Market

Fraud and Security Concerns:
Gift card fraud, unauthorized access, and cyber threats remain key challenges, particularly for digital and open-loop gift cards. Ensuring secure transactions and data protection is critical for market participants.

Regulatory and Compliance Issues:
Different regions have varying regulations regarding prepaid instruments, taxation, expiration policies, and consumer protection, creating compliance complexities for global players.

Unredeemed Balances and Liability Management:
Managing unused or partially redeemed gift card balances poses accounting and regulatory challenges for issuers and retailers.

High Market Competition:
The presence of numerous global, regional, and local players has intensified competition, leading to pricing pressure and the need for continuous innovation.

➤ Market Trends and Technological Innovations

Rapid Growth of Digital and E-Gift Cards:
Digital gift cards are gaining dominance due to instant delivery, ease of customization, and compatibility with mobile apps and digital wallets.

Integration with Mobile Wallets and Super Apps:
Gift cards are increasingly integrated into digital ecosystems, enabling seamless storage, redemption, and transfer through smartphones.

Personalization and Custom Design Options:
Advanced analytics and AI-driven tools enable personalized gift card designs, messages, and recommendations, enhancing user engagement.

Cross-Border and Multi-Currency Gift Cards:
Globalization and cross-border e-commerce are driving demand for gift cards that can be used internationally and across multiple currencies.

Blockchain and Enhanced Security Solutions:
Emerging technologies such as blockchain are being explored to improve transparency, reduce fraud, and enhance security in gift card transactions.

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

Companies Covered in Gift Card Market

Amazon.com, Inc.
Best Buy Company, Inc.
Starbucks Corporation
Walmart Inc.
Target Corporation
The Home Depot, Inc.
Blackhawk Network
Pine Labs Pvt.
Visa Inc.
American Express Company
Mastercard Incorporated
PayPal Holdings, Inc.
Gyft
Others

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➤ Future Outlook

The global gift card market is set to experience sustained and accelerated growth over the coming years, supported by the rapid evolution of digital commerce and payment ecosystems. As consumers increasingly prioritize convenience, flexibility, and personalization, gift cards will continue to gain prominence as a preferred gifting and payment solution.

The future of the market will be shaped by technological innovation, enhanced security measures, and deeper integration with digital wallets and loyalty platforms. While challenges such as fraud risks and regulatory complexities persist, companies that invest in secure digital infrastructure, customer-centric offerings, and strategic partnerships are well-positioned to capitalize on emerging opportunities.

Overall, the gift card market is moving toward a more digital, personalized, and globally connected future, making it a critical component of the modern retail and payments landscape and an attractive growth avenue for market participants worldwide.

About Persistence Market Research:

At Persistence Market Research, we specialize in creating research studies that serve as strategic tools for driving business growth. Established as a proprietary firm in 2012, we have evolved into a registered company in England and Wales in 2023 under the name Persistence Research & Consultancy Services Ltd. With a solid foundation, we have completed over 3600 custom and syndicate market research projects, and delivered more than 2700 projects for other leading market research companies' clients.

Our approach combines traditional market research methods with modern tools to offer comprehensive research solutions. With a decade of experience, we pride ourselves on deriving actionable insights from data to help businesses stay ahead of the competition. Our client base spans multinational corporations, leading consulting firms, investment funds, and government departments. A significant portion of our sales comes from repeat clients, a testament to the value and trust we've built over the years.

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