Gift Cards Market By Material Merchant Type (Restaurants, Department Stores, Grocery Stores, Supermarkets/Hypermarkets, Discount Stores, Coffee Shops, Entertainments, Salons/Spa, Book Stores, Home Décor Stores, Gas Stations, Visa/Master Card/American Express Gift Cards, Others) By Merchant Type (Universal Accepted Open Loop, Restaurant Closed Loop, Retail Closed Loop, Miscellaneous Closed Loop, E-Gifting) By End User – Growth, Future Prospects and Competitive Analysis, 2016 – 2028

What is the Global Sales Revenue of Gift Cards?

The global sales revenue of Gift Cards increased to more than USD 437.7 Billion in 2020 and is projected to witness substantial growth in the near future. In 2021, North America dominated the global market, with the United States leading the way. By 2022, gift card sales in the United States are expected to reach over 229 billion dollars. Gift card sales were roughly 160 billion dollars in 2018, indicating an increased trend over the previous few years.

What is the Market Size of Gift Cards in terms of value?

Global Gift Cards Market is projected to increase at a significant CAGR of 15.5% in the coming years. In 2021, the global gift cards market was valued at USD 572.8 Billion and is projected to reach USD 1359.8 Billion by 2028. The demand for gift cards is projected to increase substantially in the coming years. It is presumed to generate revenue opportunities for the key industry players worth USD 787 billion during the forecast period between 2022 and 2028.

How are Government Owned Businesses affecting Gift Cards Market?

The gifting industry is one of the largest in the world, with billions of dollars spent on physical gifts each year in the country. As a result, government-owned enterprises in India are implementing gift card programs in order to promote cashless gifting and boost the gift card market. For example, in June 2021, LIC Card Services and IDBI Bank announced a collaborative agreement to introduce Shagun, a contactless prepaid gift card for Indian Types. As a result, LIC Card Services is entering the fast-growing Indian digital gift card market with the launch of this prepaid gift card solution. Additionally, The prepaid gift card, which was released on the RuPay platform, may be used at millions of businesses and e-commerce websites across the country. As a result, the corporation can diversify the card's Type spending possibilities.

Interesting Facts about Gift Cards Industry

• The top 3 countries for gift card exports are USA, Germany, and Canada.
• The top 3 importers of gift cards are India, China, and United Kingdom.
• Due to rapid expansion in digital commerce and an increase in new technologies that enable customers with creative and smooth payment methods, Types' consistent connection with shopping is one of the primary growth reasons for the market.
• The gift card sector confronts several security issues, including the potential of being hacked by hackers and criminals, which is a significant hurdle to growth.
• In 2021, the North American region dominated the global gift card market in terms of volume and value, which is expected to continue over the forecast period.
• The open-loop gift card category is likely to grow substantially over the forecasted period because they allow customers to shop at multiple places, and open-loop gift cards have grown in popularity.
•  

Who are the Top 10 players/companies in gift cards market in term of value and volume?

The key players in the global gift cards market in terms of value and volume include Apple, Inc., The Up Group, Best Buy Company, Inc., Amazon.com, Inc., Starbucks Corporation, Walmart Stores, National Gift Card Corporation, Edge Loyalty Systems Pty. Ltd., Target Corporation, InComm, QwickSilver Solutions, Gyft, Blackhawk Network holdings, Inc., and Edenred Group. These major players are focusing on new product development and technological innovation in order to improve their gift card production and achieve a competitive market share on a global scale. Furthermore, some regional and country-level players are significantly investing in expanding their product variety and increasing sales. For instance, in June 2021, LIC Card Services and IDBI Bank have formed a strategic relationship to launch Shagun, a contactless prepaid gift card for Indian Types. LIC Card Services is entering the fast-growing Indian digital gift card market with the launch of this prepaid gift card solution.

Additionally, Qwikcilver, one of India's biggest gift card companies, announced a strategic relationship with Vistara in September 2021. Vistara is launching a Purple Ticket, a new gift card for travel on Vistara that can be used by individual Types and for corporate gifting in India, as part of the agreement. Customers can use the gift card option to book tickets or to pay for extra services like seat reservations, excess luggage, and lounge access.

Who are the Top 10 Countries in the Gift Cards Market?

The major countries in the global gift cards market are China, India, the U.S., Canada, Mexico, the U.K., Germany, France, Russia, Netherlands, and Norway. North America was one of the first regions to use gift cards extensively. In the United States, gift cards are the most popular Merchant Type of Christmas present, contributing to the country's booming gift card sector. Furthermore, demand for gift cards has increased dramatically in recent years during holidays such as Christmas and birthdays, which has boosted the market growth. Thank you! Presents, graduation, baby showers, and Mother's Day are among the other popular occasions for which customers increasingly acquire gift cards. Amazon, iTunes, Walmart, and Giant Eagle are just a handful of the prominent retailers selling gift cards in the region.

Which is the Key Merchant Type in the Gift Cards Market?

During the forecast period, the open-loop sub-segment is expected to hold a dominant market share in the global market and generate $724.93 billion in revenue. The open-loop gift card category is likely to grow substantially over the forecasted period. Because they allow customers to shop at multiple places, open-loop gift cards have grown in popularity. Another major factor fueling the growth of the open-loop gift card market is increased security. Because these cards can be used at various stores, they can be used even if one of them closes. As a result, the gift card remains functional. Given these factors, the segment's growth is expected to continue in the next years.

What are the Major Driving Factors for Gift Cards Market?

With the rapid advancement of smartphones, gift cards have grown more inventive. Gift card aficionados and smartphone users may now combine everything into one easy package, thanks to the use of new technologies and marketing methods. The rise in smartphone penetration is likely to increase the gift card market by providing customers with more flexible and convenient payment options. Furthermore, due to rapid expansion in digital commerce and an increase in new technologies that enable customers with creative and smooth payment methods, Types' consistent connection with shopping is one of the primary growth reasons for the market. Furthermore, continual technological advances in gift cards assist organizations to increase sales by making their product offers more unique and appealing, propelling the gift cards market forward.

What are the Major Restraints for Gift Cards Market?

The gift card sector confronts a number of security issues, including the potential of being hacked by hackers and criminals, which is a significant hurdle to growth. For example, Distil Networks, the world's leading bot mitigation company, recently identified GiftGhostBot, a bot that targeted over 1,000 websites in pursuit of gift cards, causing a balance breach. In the global gift card market, it has become a paradigm of expansion under duress. In their hurry to make smartphone gift card implementation as simple and inexpensive as possible, retailers like Starbucks and Target have neglected security flaws that allow customers to use money on another shopper's gift card.

Which Region Dominated the World Gift Cards Market?

With a CAGR of 15.0 percent, North America is expected to be the fastest expanding market throughout the projected period, reaching $604.47 billion by 2028. North America is a mature market that is likely to maintain its dominance in the global gift card market, accounting for the largest market share throughout the forecast period. This is due to advanced telecommunication networks, significant industry participants, and well-established hospitality infrastructures in this region. North America was one of the first regions to use gift cards extensively. In the United States, gift cards are the most popular Merchant Type of Christmas present, contributing to the country's booming gift card sector. Furthermore, demand for gift cards has increased dramatically in recent years during holidays such as Christmas and birthdays, which has boosted the market growth. Thank you Presents, graduation, baby showers, and Mother's Day are among the other popular occasions for which customers are increasingly acquiring gift cards. Amazon, iTunes, Walmart, and Giant Eagle are just a handful of the prominent retailers selling gift cards in the region.

However, throughout the forecast period, the Asia Pacific region is predicted to develop at the fastest CAGR, indicating significant growth in the worldwide gift card market. This is attributable to rising smart-gadget penetration, rising per-capita income, expanding e-commerce, and, most crucially, rising government measures supporting the use of digital payment systems, particularly in emerging nations.