Gift Cards Market Size, Share, Growth, Trends, and Global Industry Analysis: By Type Universal Accepted Open Loop, Sports Gift Card, E-Gifting, Restaurant Closed Loop, Retail Closed Loop, Miscellaneous Closed Loop), By Application, Restaurant, Department Store, Coffee Shop, Entertainment (Movie, Music), Others), and Region Forecast 2019-2030

Gift Cards Market size was valued at US$ 434.2 billion in 2023 and is poised to grow at a significant CAGR of 4.9% from 2024 - 2030. There has been increasing in demand for improved products and technology improvements linked with payment solutions in recent years. As a result of the COVID-19 epidemic, the gift card industry has changed. The disparity between virtual and actual gift card penetration is narrowing. As a result, the focus of innovation has switched to digital cards (also known as e-cards) and e-gifting. Many business sectors are becoming increasingly imaginative in their ways of expanding their operations due to increased economic challenges. In this instance, gift cards are likely to be utilized as a promotional tool.

For companies like restaurants and cafeterias, gift cards are considered an essential source of immediate cash. The key growth factors of the market include consistent consumer engagement with shopping, owing to rapid expansion in digital commerce and an increase in the number of new technologies that provide customers with creative and smooth payment options.Furthermore, as technology improves gift cards, businesses can enhance sales by making their product offerings more unique and appealing, moving the market ahead. Also, gift cards are an excellent way for companies to show their appreciation for their employees. This type of workplace acknowledgment promotes diversity and inclusion.

Gift cards assist merchants, and marketers raise brand exposure, increasing holiday sales, improving customer interaction, producing meaningful customer behavioral data, simplifying distribution, and enhancing cash flow. Due to millennial brides' growing propensity for online purchases, E-gift cards are becoming a significant business. Wedding e-gift cards are becoming more popular as internet-savvy women get more comfortable online shopping. With consumers appreciating the many benefits of gift cards, selling gift cards is emerging as a new sales flavor in online retail. Furthermore, during the forecast period, the increased use of smartphones and digital wallets is likely to provide the market chances.

Key Developments

• In June 2021, LIC Card Services entered into a strategic partnership with IDBI Bank to launch a contactless prepaid gift card Shagun for consumers in India. Through the launch of this prepaid gift card solution, LIC Card Services is foraying into the high-growth Indian digital market.
• In September 2021, Qwikcilver, one of the leading gift card providers in India, entered into a strategic partnership with Vistara. Under the collaboration, Vistara is launching a Purple Ticket, a new gift card for travel on Vistara, which can be used by individual consumers as well as for corporate gifting in India. Customers can use the gift card solution either for booking their tickets or for additional services such as seat booking, excess baggage, and lounge access.