GMI Research analysis indicates that the Gift Cards Market estimated at USD 775.0 billion in 2021 and is slated to register a double digit CAGR of 15.1% over the period, 2022-2028 and is projected to reach USD 2,387.3 billion in 2029.

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Market Dynamic

Key Drivers and Emerging Trends

The global gift card market is becoming more mainstream over the coming years (2020-2027) mainly due to the consistent connection of consumers with shopping driven by the growth in digital commerce and the rising number of new technologies with innovative & seamless payment options. Moreover, the ongoing technological innovations in gift cards have increased their sales by providing unique & attractive designs and functions. The leading players in the gift card market are increasingly using gift cards as a promotional tool for their organizations. They are engaged in partnerships with other companies to provide offers on their product by means of gift cards. This attractive strategy has helped the companies to surge their sales volume. In addition to this, there has been increased adoption of gift cards, particularly in the corporate sector. The private companies are distributing gift cards to their employees in the form of prizes or to recognize their contributions.

It has been observed that the significant rise in individual’s participation in various loyalty programs to earn gifts as rewards is another factor that is propelling the growth of the gift card market size. The gift card is considered as a budgeting tool for people as they can decide to make purchases equal to the amount available on the card, thus removing the need to pay extra out of the pockets. This is one of the emerging gift card market trends that is responsible for the growth of the market over the coming years. The drastic shift towards the card payment option rather than cash indirectly energizes the demand for gift cards. Furthermore, the outbreak of the COVID-19 pandemic has surged the demand for gift cards, especially open-loop gift cards. This type of gift cards is gaining more attraction as they are easy to use, flexible, and highly convenient. Consumers are becoming more confident about mobile retail and payment application as far as gift cards are concerned. The GMI Research’s market analysis also states that e-gifting is gaining prominence around the world due to the expansion of the e-commerce industry, particularly smartphones and the new e-gift incentive policies in companies. Gift cards are now considered a popular gifting option for festive occasions and birthdays. This factor is responsible for the growth of the global gift card industry.

Restraint in the Gift Card Market

According to the gift card market research, the increasing concerns related to the usage of plastics and the risk relation to the loss of money are two major factors that are likely to hinder the market’s growth.

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Functional Attribute – Segment Analysis

Based on the functional attribute, the open loop segment is anticipated to grow at a higher CAGR during the forecast period. The increasing usage of open loop gift cards in various areas such as clothing stores, grocery stores, restaurants, and more places is one of the biggest factors that is contributing to the growth of the segment. This type of gift card is easily redeemable anywhere as they run on the various credit card systems.

Merchant – Segment Analysis

Based on the merchant, the grocery store/food supermarkets segment is projected to dominate the market during the forecast period. The usage of gift cards in grocery stores provides various benefits to both the consumers and the retailers. Gift cards act as a convenient payment option and is used as a substitute for cash. Moreover, the COVID-19 pandemic has forced individuals to use gift cards for their grocery purchases rather than making a cash payment to minimize the spread of the virus.

Industry Vertical – Segment Analysis

Based on the industry vertical, the corporate institutions segment is expected to grow at a higher CAGR during the forecast period. The increasing usage of the gift card in business as a reward tool for employees is a key driver that is contributing to the segment growth.

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Regional – Segment Analysis:

Based on the region, North America region is expected to dominate the global gift cards market attributed to the emerging trends of giving gift cards in corporate offices and family functions. In addition to this, the government of the US and Canada are focusing on maximizing the usage of digital payments in place of physical cash. This factor will have a positive impact on the growth of the market in this region. On the other edge, Asia-pacific region is expected to witness faster CAGR. The presence of emerging economies and the increasing penetration of smartphones are the two key drivers that are likely to surge the market’s demand. The coronavirus pandemic has encouraged individuals to opt for digital payment instead of exchanging cash.

Top Market Players

Various notable players operating in the market, include, Fiserv, Inc., Qwikcilver Solutions Pvt Ltd., NGC US, LLC, Blackhawk Network, Plastek Card Solutions, Inc., Duracard, TenderCard, TransGate Solutions, Buyatab, Apple Inc., among others. 

Key Developments:

• • In 2020, Qwikcilver Solutions Pvt Ltd. entered into a partnership with Google Pay’s Spot Platfrom to lauch its “Woohoo virtual gift card store”.

Segments covered in the Report:

The global Gift Card market has been segmented on the basis of Functional Attribute, Merchant, Products, Industry Vertical and key regions. Based on Functional Attribute, the market is segmented into Open Loop, Closed Loop. Based on Merchant, the market is segmented into Restaurants, Departmental Store, Grocery Store/Food Supermarkets, Discount Stores, Coffee Shops, Entertainment, Others. Based on Products, the market is segmented into E- Gift Cards, Physical Cards. Based on Industry Vertical the market is segmented into Retail, Corporate Institutions. 

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Key questions answered in this research report:

• • At what pace is global Gift Card market growing? What will be the growth trend in the future?
  • What are the key drivers and restraints in Gift Card market? What will be the impact of drivers and restraints in the future?
  • What are the regional revenues and forecast breakdowns? Which are the major regional revenue pockets for growth in the global Gift Card market?
  • Which Functional Attribute generated maximum revenues in 2021 and identify the most promising Functional Attribute during the forecast period?
  • What are the various Merchant areas of global Gift Card market and how they are poised to grow?
  • What companies are the major participants in this market and their business strategies, how does the competitive landscape look like?

Report Coverage	Details
Market Revenues (2021)	USD 775.0 billion
Market Base Year	2021
Market Forecast Period	2022-2029
Base Year & Forecast Units	Revenues (USD Billion)
Market Segment	By Functional Attribute, By Merchant, By Products, By Industry Vertical, By Region
Regional Coverage	Asia Pacific, Europe, North America, and RoW
Companies Profiled	Fiserv, Inc., Qwikcilver Solutions Pvt Ltd., NGC US, LLC, Blackhawk Network, Plastek Card Solutions, Inc., Duracard, TenderCard, TransGate Solutions, Buyatab, Apple Inc., among others; a total of 10 companies covered.
25% Free Customization Available	We will customize this report up to 25% as a free customization to address our client’s specific requirements

Market Segmentation

Global Gift Card Market by Functional Attribute

• • Open Loop
  • Closed Loop

Global Gift Card Market by Merchant

• • Restaurants
  • Departmental Store
  • Grocery Store/Food Supermarkets
  • Discount Stores
  • Coffee Shops
  • Entertainment
  • Others

Global Gift Card Market by Products

• • E- Gift Cards
  • Physical Cards

Global Gift Card Market by Industry Vertical

• • Retail
  • Corporate Institutions

Global Gift Card Market by Region

• • North America Gift Card Market (Option 1: As a part of the free 25% customization)
    • By Functional Attribute
    • By Merchant
    • By Products
    • By Industry Vertical
    • US All-Up
    • Canada All-Up
  • Europe Gift Card Market (Option 2: As a part of the free 25% customization)
    • By Functional Attribute
    • By Merchant
    • By Products
    • By Industry Vertical
    • UK All-Up
    • Germany All-Up
    • France All-Up
    • Spain All-Up
    • Rest of Europe All-Up
  • Asia-Pacific Gift Card Market (Option 3: As a part of the free 25% customization)
    • By Functional Attribute
    • By Merchant
    • By Products
    • By Industry Vertical
    • China All-Up
    • India All-Up
    • Japan All-Up
    • Rest of APAC All-Up
  • RoW Gift Card Market (Option 4: As a part of the free 25% customization)
    • By Functional Attribute
    • By Merchant
    • By Products
    • By Industry Vertical
    • Brazil All-Up
    • South Africa All-Up
    • Saudi Arabia All-Up
    • UAE All-Up
    • Rest of world (remaining countries of the LAMEA region) All-Up

Major Players Operating in the Gift Card (Option 5: As a part of the Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • Fiserv, Inc.
  • Qwikcilver Solutions Pvt Ltd.
  • NGC US, LLC
  • Blackhawk Network
  • Plastek Card Solutions, Inc.
  • Duracard
  • TenderCard
  • TransGate Solutions
  • Buyatab, Apple Inc.