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How Has the Digital Gift Card Market Performed Historically, and What Are Its Future Growth Projections?
The digital gift card market size has grown rapidly in recent years. It will grow from $493.12 billion in 2024 to $581.38 billion in 2025 at a compound annual growth rate (CAGR) of 17.9%. The growth in the historic period can be attributed to rise of mobile payments, contactless payments, increased gifting culture, social media integration, seasonal promotions and holidays.
The digital gift card market size is expected to see rapid growth in the next few years. It will grow to $1083.58 billion in 2029 at a compound annual growth rate (CAGR) of 16.8%. The growth in the forecast period can be attributed to enhanced personalization features, environmental sustainability, innovative redemption options, cross-platform compatibility, expansion in emerging markets. Major trends in the forecast period include mobile app integration, subscription-based gifting services, augmented reality (AR) experiences, blockchain for digital gift security, corporate gifting programs.
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What Are the Essential Drivers Propelling the Digital Gift Card Market Forward?
The surge in awareness of digital payment is expected to propel the growth of the digital gift card market going forward. Digital payments are payments, made via digital or internet channels without the exchange of actual money. The gift cards are quickly purchased and used at critical businesses including grocery stores and online-only retailers as a mode of digital and contactless payment option. Due to the simplicity of sending and using digital gift cards as a contactless payment method, their popularity has surged. For instance, in January 2024, according to the report published by the European Central Bank, in the first half of 2023, the euro area saw a 10.1% increase in non-cash payment transactions, reaching 67.0 billion, despite a 4.5% decline in the corresponding total value to €111.4 trillion compared to the same period in 2022. Therefore, the surge in awareness of digital payments is driving the growth of the digital gift card market.
What Are the Primary Market Segments in the Digital Gift Card Market?
The digital gift cardmarket covered in this report is segmented –
1) By Functional Attribute: Open Loop Gift Card, Closed Loop Gift Card
2) By Business Type: Business To Business (B2B), Business To Consumer (B2C)
3) By Application: Consumer Goods, Health And Wellness, Restaurants And Bars, Travel And Tourism, Media And Entertainment, Other Applications
Subsegments:
1) By Open Loop Gift Card: General Purpose Reloadable Cards, Non-Rechargeable Cards, Multi-Brand Gift Cards
2) By Closed Loop Gift Card: Retailer-Specific Cards, Brand-Specific Cards, Promotional Cards
What Are the Most Prominent Trends Impacting the Digital Gift Card Market?
Product innovation is the key trend in gaining popularity in the digital gift card market. Major companies operating in the market are introducing new technologies such as allowing customers to trade cryptocurrency into their favorite retailers and tracking sites to ensure cards don't go missing. For instance, in June 2023, Codego, an Italy-based fintech company that specializes in providing financial solutions, launched crypto gift cards, a groundbreaking product that merges traditional gifting practices with the modern world of digital assets. These innovative gift cards allow users to seamlessly gift digital assets, such as Bitcoin and Ethereum, to their loved ones. The process involves purchasing the gift cards online or from selected retail stores, each featuring a unique code corresponding to a predetermined cryptocurrency value. Recipients can redeem these cards through the Codego Giftcard app, which enables them to monitor their digital asset balance easily.
Who Are the Top Performers and Innovators in the Digital Gift Card Market?
Major companies operating in the digital gift card market include Walmart Inc., Amazon.com Inc., Target Brands Inc., American Express Company, PayPal Holdings Inc., Fiserv Inc., Loop Commerce Inc., Blackhawk Network Holdings Inc., InComm Payments, Apple Inc., First Data Corporation, Treatful Inc., Stored Value Solutions, Prezzee, Givex Corporation, Yiftee Inc., Qwikcilver Solutions Pvt Ltd, Tango Card, Giftango Corporation, Buyatab Online Inc., Paytronix Systems Inc., GiftbitInc, GiftRocket Inc., eGifter LLC, Giftogram Inc., Giftly Inc., National Gift Card Group, SVM Global Limited, Giveter Inc., The Gift Card Café LLC, Eagle Eye Solutions Group plc
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Which Regional Markets Are Likely to See the Most Significant Expansion in the Coming Years?
North America was the largest region in the digital gift card market share in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the digital gift card market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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