The size of the global gift cards market was estimated to be USD 578.92 billion in 2024 and is forecasted to reach USD 1,342.31 billion by 2034, at a CAGR of 18.21% from 2025 to 2035 The gift cards market is fueled by increasing acceptance of virtual gift cards.
Gift Cards Market Growth Drivers
Customers prefer convenient options like buying electronic gift cards in-store or online.
Service-based gift cards like entertainment or holiday are more appealing as customers are opting for experiences rather than physical possessions.
Open-loop gift cards can gain popularity in the market and get accepted by numerous businesses.
Targeted marketing strategies that address specific segments of the population can boost gift card sales, this is a stimulus for the gift cards market.
Gift cards with loyalty programs and rewards are used by companies to acquire and retain customers.
The sector can expand more by incorporating digital payment systems and mobile wallets.
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Gift Cards Market Trends
Gift cards have become digital and mobile, making them quicker and more convenient to use. You can even personalize them with custom messages and playful graphics. And blockchain technology makes them extremely secure, minimizing the risk of fraud. These digital cards are also becoming greener, with some made from sustainable materials. And they’re not only for shopping anymore! Companies are now using them to reward customers and drive sales. Gift cards are also now international, so you can use them in foreign countries and currencies. And with the growth of virtual experiences and subscription services, they’re even more in demand.
In September 2023, in India, the Government-sponsored Open Network for Digital Commerce (ONDC) launched the “ONDC Network Gift Card.” The network-level gift card can be used by firms for corporate gifting and employee activation in expectation of the approaching festive season.
Gift Cards Market Analysis
Discover more about the major segments defining this market
Depending on type, the market is segmented into closed-loop gift cards, and open-loop gift cards. The closed-loop gift cards segment is anticipated to achieve a value in excess of USD 2 trillion by 2032.
Closed-loop gift cards are usually issued by an individual retailer or set of retailers and can only be used within their stores. Closed-loop gift cards encourage loyalty and repeat business within the issuing retailer’s system. Closed-loop gift cards are usually bought by customers for convenience and as presents, giving the recipient the ability to select items or services from a desired retailer without having to use cash.
The growth of the closed-loop gift card market is also driven by advancements in digital technology that allow for effortless integration of gift card features into mobile apps and web platforms. This increases convenience and user experience for both consumers and merchants, creating a strong gift card transaction ecosystem
Discover more about the major segments driving this market
On the basis of distribution channel, the market is segmented into online, and offline. The online segment led and is anticipated to grow at a rate of more than CAGR 25% over the forecast period.
Websites and social media provide unprecedented ease in buying and redeeming gift cards. Shoppers are able to surf, choose, and forward electronic gift cards in the comfort of their homes or remotely through mobile devices. This ease fits with contemporary lifestyles when digital payments are desirable for being quick and convenient.
The increasing number of e-commerce sites has made integrating gift card features more efficient. Gift cards can be easily integrated into the checkout processes of online stores so that customers can use them as a gifting option with product purchases. This integration enhances sales and customer retention initiatives.
Searching for region specific information?
In 2023, North America led the market for gift cards globally, contributing a share of more than 30%. Strong consumer buying power and a rich gift-giving culture fuel North American market expansion. The highly developed digital infrastructure of the region and extensive use of e-commerce platforms facilitate easy purchase and usage of gift cards by customers. In addition, the availability of several large retailers and technology firms offering various and appealing gift card options enhances market value. Corporate use of gift cards for employee rewards and customer loyalty schemes is also prevalent, driving demand.
Gift cards are also a favorite option for many different occasions because Americans appreciate the flexibility and convenience that they offer. The U.S. also boasts a large number of big stores and technology firms that provide a wide range of gift card options, making customers more appealing. Corporate applications of gift cards as rewards for employees and consumer rewards programs are prevalent, driving the growth of the market. Innovation in mobile wallet compatibility and additional security features further enhance the usefulness and appeal of gift cards, solidifying the U.S. position as a leader in the global gift card market.
Gift Cards Market Share
Amazon is the gift card king, with a whopping share of more than 40%. They’re like the Willy Wonka of gift cards, with a massive factory producing infinite treats. Why is Amazon so well-liked for gift cards? Well, it’s not only because they have the golden ticket to happiness (i.e., a gazillion products to select from). It’s also because their gift cards are super-versatile ninjas that can get you anything from a new computer to a warm sweater or even groceries and digital treats. Talk about convenience! Purchasing and redeeming Amazon gift cards is as simple as pie. You can do it all online, so no need to get off the couch. Add to that, they have all sorts of delivery options, such as sending it directly to someone’s email, or sending a physical card that you can decorate all pretty. It’s the gift that keeps on giving! And don’t even get me started on businesses. Amazon gift cards are the employee reward or marketing dream come true. They’re like magic wands that can lift spirits and get people buzzing. So, there you have it. Amazon’s market leadership in the gift cards business is reminiscent of a river of chocolate going on and on through a fantasy land of candies.
Gift Cards Market Companies
Large players present in the business of gift cards are
Amazon.com Inc.
American Express Company
Blackhawk Network
Fiserv, Inc.
Givex Corporation
InComm Payment LLC
Market, By Type
- Closed-loop gift cards
- Open-loop gift cards
Market, By Distribution Channel
- Online
- Offline
Market, By Form
- Virtual
- Physical
Market, By Ability to Reload
- Non-reloadable gift cards
- Retail gift cards
- Promotional cards
- Incentive cards
- Reloadable gift cards
- General Purpose Reloadable Cards (GPR)
- Corporate/Business cards
- Teen and student cards
Market, By Application
- Personal finance
- Marketing & promotions
- E-commerce
- Fashion & lifestyle
- Grocery & supermarket
- Gaming & entertainment
- Online streaming
- Hospitality & travel
- Dining & restaurant
- Travel & hotel
- Spa & wellness
- Education
- Non-profit & charity
- Other applications
Market, By End User
- Retail consumers
- Corporate institutions
Market Dynamics
Drivers
Increasing popularity of personalized gift choices
Gift cards often come with customized designs along with personalized messages. This feature allows gift givers to select themes, images, or graphics that match the taste or preference of the recipient or the occasion. With these designs, gift givers can customize the gift card further to match the style and taste of the recipient, which adds to the overall presentation and effect of the gift. Such possibilities include a cheerful holiday theme, a vibrant floral print, or a sophisticated modern style. In this way, the increasing trend towards customized present solutions serves to spur the market for gift cards. Top option as an immediate gift
Though gift cards arrive loaded with an agreed amount of funds, it is still possible to customize.
To make the process of gift giving more personal, givers have the option to select a card from a seller that holds unique significance for the recipient or design that is perfect for the situation. Some gift cards now carry customizable elements in the form of personalized messages or packaging to help make them all the more desirable as a bespoke gift choice. The trend of this gift practice has also been further promoted by the invention of electronic gift cards. The invention of e-gift cards has eliminated the need for customers to purchase and mail physical cards since they can send and receive gifts instantly through email or cell phones. Technology-conscious consumers prefer this electronic convenience, and it is well suited to the growing trend of shopping online. Restraint Lack of reliability
Gift cards can be subject to theft and fraud, especially when they lack the proper activation procedures or safety measures.
In the event that proper consumer protection does not prevail, individuals will fall prey to theft or fraud and lose money inscribed on their card as there will be no means for its recovery.
Such risk makes individuals hesitant to purchase and depletes buyer trust in gift cards. Technical failures or malfunctions in the activation, redemption, or balance inquiry process can cause frustration to both gift card buyers and receivers. If buyers are unable to use or redeem their gift cards, they are less likely to buy them in the future or suggest them to others. Opportunity Increasing demand for e-gift cards
Today’s busy lifestyle makes individuals greatly value quick gratification.
This demand is fulfilled by e-gift cards, which can be sent instantly to recipients either via email or mobile phone.
Since e-gift cards arrive in an instant, there are no delays as with regular gift cards, thus making them an ideal choice for last-minute or spontaneous purchases. E-gift cards benefit stores from a sustainability and cost perspective. The costs of printing, packaging, and mailing physical cards are eliminated with digital delivery, which saves overhead and is environmentally friendly. Since they are so inexpensive, stores are motivated to promote e-gift cards as the superior option for giving, which will drive market acceptance. Thus, the growing demand for e-gift cards is a chance for the gift cards market. Card Type Insights The closed-loop card segment held the gift cards market in 2024. Some stores, restaurants, or businesses typically issue closed-loop gift cards, enabling them to personalize the features, appearance, and rewards to suit their company identity and customer base. Consumers are more likely to purchase and use gift cards from the businesses or brands they favor because of this personalization, making them feel more strongly bonded to the brand.
They also come equipped with advanced security features such as PINs, magnetic strips, or special activation codes to prevent fraudulent activities and unauthorized use.
Furthermore, most merchants allow customers to register their gift cards or link them to online accounts so that they can review their balance, monitor transactions, and report any issues easily.
