Gift Cards Market size, Share, Growth, and Industry Analysis, By Type (Universal Accepted Open Loop, E-Gifting, Restaurant Closed Loop, Retail Closed Loop, Miscellaneous Closed Loop) By Application (Restaurant, Retail, Coffee Shop, Entertainment, Others) and Regional Forecast to 2034

GIFT CARDS MARKET OVERVIEW

The global Gift Cards Market size was USD 440030 million in 2025 and is projected to reach USD 827390.8 million by 2034, exhibiting a CAGR of 6.5% during the forecast period.

The gift card industry is transforming, from the old plastic cards into ingenious omni-channel instruments first payment, secondly loyalty, and thirdly brand engagement. Open loop cards permit unlimited spending freedom, whereas closed loop programs foster deeper merchant relationships and enable targeted promotions. Through mobile wallets, mobile apps, and instant delivery, the adoption is hastened for personal gifting or corporate incentives. Retailers use analytics to tailor denominations, cross sell other product categories, and reclaim inactive balances within ethical considerations. What consumers want is convenience, security, and choice. Contactless redemption and self-service top-ups are today the basics. Partnerships with fintech companies, processors, and marketplace platforms enable international and cross-channel reach. Compliance with anti-fraud controls and data privacy matters finely shapes programs all around. As experience-activated shopping grows, gift cards become discovery tools, driving traffic both online and in physical stores, thereby creating lifetime value for the brands and buyers.

GLOBAL CRISES IMPACTING GIFT CARDS MARKET- COVID-19 IMPACT

Gift Cards Market Had a Positive Effect Due to Increased Digital Adoption During COVID-19 Pandemic

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The Gift Cards Market saw a transformation following the COVID-19 outbreak, accelerating the digital adaptation of gift cards and changing behaviour across redemption channels. It's were a few weeks of enlightenment as nearly zero consumers were visiting stores in Germany, and retailers and services started supporting e-gifting options, curbside pickup, and contactless redemption. Consumers were awarding gift cards to support their local merchants, plan budgets, and send gifts to distant ones, while companies kept expanding a whole package of rewards linked to engagement and wellbeing. Platforms were preparing for an immediate delivery, self-service corporate portals, and fraud controls to sustain an uptick in online volumes. Problematic breakage, an ill customer service, and rigid policy were at the top of the agenda when stores reopened with an uneven rank. Travel, dining, and entertainment saw delayed redemptions, whereas grocery, home improvement, and digital content experienced faster cycling. This crisis has also fast-tracked accepting hybrid fulfilment where location-based experiences meld with online vouchers, which is now the mainstay of program design, analytics, and lifecycle marketing.

LATEST TRENDS

Rise of Digital-First Gift Cards to Drive Market Growth

A significant trend in gift cards is the rise of digital-first solutions, that consumer preference focuses on instant gratification with personalized mementos while on Mobile. Gift card properties are becoming embedded in payment apps, reward programs, and social media, allowing a single tap to purchase and immediate delivery via text message, e-mail, or in-app notifications. Customization with gifts can incorporate personalized messages, short videos, and thematic designs that heighten emotional value and make digital gifting feel special for the recipient. Bulk e-gifting for recognition and rewards has been widely accepted in corporate settings, while the automation of distribution allows greater efficiency. Integration with BNPL services and cryptocurrency wallets is now gradually coming into being, favored by the younger generation. What this digital-first model achieves is not only to fit the bill of on-demand convenience but also to give merchants deep analytics to run targeted campaigns.

GIFT CARDS MARKET SEGMENTATION

BY TYPE

Based on Type, the global market can be categorized into Universal Accepted Open Loop, E-Gifting, Restaurant Closed Loop, Retail Closed Loop, Miscellaneous Closed Loop:

• Universal Accepted Open Loop: Universally Accepted Open Loop gift cards typically sit atop a major payment network; they present the recipient with the choice to shop in a variety of merchants and services, be it online or offline. They attract consumers who want freedom of choice and are generally associated with corporate reward situations, travel gifting, and even personal occasions. Merchants get free publicity, but with no redemption restrictions, whereas issuers get payment fees and data insights. These cards allow cross-border uses and establish them as a fantastic international gifting tool. Considerations in fraud may be in the form of fraud prevention practices, the expiration of their card period, or even activation procedures. With consumers increasingly thriving in multi-merchant versatility, open-loop cards steal the show, often fitted with a digital delivery and reloadable branding to accentuate long-term engagement.
• E-Gifting: Electronic gifting or e-Gifting is a completely digital method of gifting gift cards through email, messaging apps, or various different sites or platforms for instant delivery and redemption. It has grown quickly due to the convenience it offers, lower cost, and the ability to customize the design and message. E-gifting avoids shipping delays and production costs and is, therefore, friendly to the environment. Businesses use e-gifting to incentivize promotions, customer retention, and bulk corporate incentives, often tying in the activities into loyalty programs and mobile wallets. Fraudulent activity can be mitigated through robust fraud detection, encrypted codes, and multi-factor authentication. With smartphone penetration rising and consumers opting for fast, no-touch options, e-gifting is set to capture high-growth space, designing seamless digital ecosystems that link personal gifting with corporate rewarding.
• Restaurant Closed-Loop: Closed-loop gift cards are spendable at restaurants that belong to a brand or chain, and help in entrenching brand loyalty and in ensuring repeated patronage. These usually serve as gifts for personal occasions, Christmas gifts, or incentives for corporations. A card holder will be incented to taste the restaurant's kitchen and atmosphere that will contribute additional sales in the form of upsells into premium dishes or premium drinks. Many restaurants associate these cards with their loyalty programs so that cardholders would earn bonus points or discounts on restaurant purchases, thus adding more value to the card. The sale of restaurant gift cards via the Internet has soared in recent years, allowing a customer to buy a card in an instant and redeem it from their phone. Seasonal marketing campaigns or occasional releases of card designs keep the interest alive, whereas an increased option for expiration and tracking of balance serve the satisfaction of the customer. This type of card is still crucial to driving the targeted walk-in and further strengthening the brand identity.
• Retail Closed Loop: Retail closed loop gift cards are created purposely to be used only within a particular retail chain or brand to further targeted spending and customer engagement. They are among the most popular gift choices for birthdays, seasonal gifts, and promotions, presenting the gift recipient with a ruined shopping experience within the brand's spectrum of product offerings. These cards result in higher footfalls for retailers, best-upselling chances, and better turnover of inventory. Another fantastic feature of such cards is that they can be linked with a loyalty program where customers accumulate points or gain special discounts. The digital retail gift card sector has seen huge growth of late; plus, it permits instant delivery and on-the-go storage on mobile wallets. The more creatively designed they are along with their holiday editions and influencer co-branding, the more popular they grow, and on the other hand, a severe defence mechanism must be present against fraud attempts, been it for a retailer or a consumer.
• Miscellaneous Closed Loop: Purchasing Miscellaneous Closed Loop Gift Cards encompasses a myriad of niche categories such as specialty services, travel experiences, entertainment venues, and hobby-related retailers. These cards tilt towards targeted interests: consumers wishing to gift experience-based or specialty items versus general retail-based items. They provide varied uses such as tickets to events, spa treatments, and subscription services for local attractions offering experiences tailored towards specific memories. They also serve to further niche branding initiatives, often around seasonal campaigns and bundle packages. Through digital delivery and redemption on one's mobile, they have attained ample accessibility, whereas customization and theme-based packaging serve to further beautify the journey of gifting. This particular area with myriad types and options for personalization has gained increased attention as one of the fastest-growing segments of the gift card market.

BY APPLICATION

Based on application, the global market can be categorized into Restaurant, Retail, Coffee Shop, Entertainment, Others:

• Restaurant: Gift cards for restaurants, being in high demand, serve as personal and corporate gifts allowing the recipients to enjoy the restaurant experience without paying. They go for birthdays, anniversaries, or employee recognition programs. Restaurants issue gift cards as a means of drawing in new customers and getting repeat visits, as well as to push menu items that have better margins. They create another layer of incentives by pairing gift cards with a loyalty program, such as bonus points or exclusive discounts. Digital restaurant gift cards are becoming popular as they offer instant purchase, delivery, and redemption via mobile. Seasonal promotions, limited-edition card designs, and bundles that combine branded cards with actual meals go a long way toward enhancing marketing appeal while also building emotional capital for the brand.
• Retail: Among the most versatile and broadly general applications, retailers offer gift cards for the chosen purchase of merchandise from a specific brand or store. They are immensely popular for occasions such as holidays, graduations, and corporate rewards. Retailers use gift cards to attract customers into their stores, promote collections, and increase the average transaction value through upselling. Some integrate them into their loyalty programs so customers can earn points or enjoy exclusive discounts. Digital retail gift cards are becoming very popular as they offer a combination of instant delivery and the possibility of easy wallet storage. Further appeal is generated through seasonal campaigns, influencer collaborations, and co-branded promotions, while solid fraud prevention secures safe transactions.
• Coffee Shop: Gift cards are another widely accepted low-value gift option, often considered to be quick daily indulgences. They carry a broad appeal ranging from casual coffee drinkers to brand loyalists. These cards are mostly used as small appreciation tokens or stocking stuffers during the holidays. To increase everyday foot traffic, coffee chains market their gift cards for use in conjunction with the purchase of bakery or seasonal items while also building brand loyalty through the integration of rewards. In that respect, coffee shop cards provide the customer the option to gift instantly, place an app-based order, or check on the card balance-the conveniences that consumers seek. Limited-edition designs tied either to the card's seasonal flavour or collaborations with artists provide an additional edge in collectability. These cards also serve to increase the number of repeat purchases while intensifying the emotional connection between brand and customer.
• Entertainment: Entertainment gift cards are oriented toward experiences such as movies, streaming subscriptions, gaming credits, concerts, or theme parks. Therefore, it is a perfect consideration to offer to someone who prefers to experience activities to buying physical things. Gift cards in this segment promote new content, increase ticket sales, and retain users during low seasons. Being digital offers instant gifting and redemption at any device, while physical cards generally have collectible card designs inspired by a popular film, game, or event. Subscription-type entertainment companies will find gift cards useful as a tool of acquiring customers and may often combine them with trial offers. This mode of giving is highly personality-based, thereby making the gift appealing to more age groups and interests.
• Others: Contrasting sharply with the core retail, dining, coffee, and entertainment segments, the application segment "Others" covers wild-card gift card usages. The examples include travel agencies, wellness and spa services, online schooling platforms, subscription box services, charitable donations, and specialty hobbyist retailers. These cards tend to sell to niche audiences who seek highly personalized or highly experiential gifts for uncommon events, such as retreats, workshops, or community events. In a nutshell, gift cards are used in this segment to lure first-time buyers, foster brand loyalty, and create yet another avenue for income generation. Digital delivery confers global reach and instant redemption, while customized designs and thematic packaging increase the value perception. As consumers continue to stress unique and thoughtful gifting alternatives, this variety-driven segment will surely further expand.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

DRIVING FACTORS

Growing Adoption of Digital Payment Solutions to Boost the Market

With the increasing digitalization, payment platforms have become major drivers that power the Gift Cards Market growth. Progressive methods such as mobile wallets, e-commerce platforms, and fintech apps have enabled a seamless purchase, storage, and redemption of gift cards. This very convenience, along with instant delivery and customizable designs, appeals to buy-gifts-for-self and corporate buyers. The shift towards cashless transactions has been further catalysed by technological innovations like QR code scanning, contactless payments, and real-time balance tracking. Through increased consumer data insights, retailers able to channel advertising promotions and facilitate efficient upselling. The digital gift cards are fast gaining popularity with the adoption of secure tech-enabled payment methods among consumers.

Corporate Gifting and Incentives Expansion to Expand the Market

The corporate world has turned to gift cards for the purpose of rewarding employees, ensuring customer loyalty, and running promotional campaigns. These are very versatile yet economical means that are easy to distribute among businesses comprising geographically dispersed teams. Therefore, companies give great importance to the flexibility presented to recipients in choosing particular products or services, thereby increasing their satisfaction and engagement. The evolution of portals for bulk buying, automated delivery systems, and co-branded designs has further increased their adoption in corporate spheres. Gift cards still allow organizations to track redemption rates and establish campaign effectiveness, translating into a measurable marketing tool. It is this growing demand from the B2B area that stimulates the overall market growth.

RESTRAINING FACTOR

Rising Fraud and Security Concerns to Potentially Impede Market Growth

Gift card fraud, which includes activities such as phishing, theft of codes, and balance draining, has stood as an impediment to the growth of this market. Cybercriminals manipulate weaknesses in online platforms, point-of-sale systems, and unprotected card numbers, denuding both consumers and businesses of their hard-earned money. As gift cards become more digital, the threat landscape grows wider. Hence, there needs to be constant upgrading of security measures. Retailers and issuers need to invest in encryption, real-time monitoring, and a combination of Two-factor Authentication for secure transactions. Fraud could dent brand credibility, curtail consumer confidence, and prevent bulk or high-worth purchases. It is crucial to fix such security gaps to support growth and build user confidence in gift card programs.

OPPORTUNITY

Expansion into Emerging Markets to Create Opportunity for The Product in The Market

The emerging markets provide a strong growth opportunity for gift cards, underpinned by rising disposable incomes, expanding retail networks, and increasing smartphone penetration. Countries across many developing regions see fast acceptance of deep digitization channels, providing excellent grounds for integrating e-gifting and mobile wallets. Gift cards therefore help local retailers and global brands to attract new clientele, enable cross-border sales, and develop loyalty programs customized to regional preferences. Collaborations with fintech companies and e-commerce platforms would ensure greater distribution and accessibility. Adjusting to local cultural traditions surrounding gifting and providing flexible denominations will unlock immense, underserved markets and allow companies to build their brands from an early stage.

CHALLENGE

Balancing Flexibility with Profitability Could Be a Potential Challenge for Consumers

One of the main challenges in the Gift Cards Market is ensuring that there is a good balance between consumer-friendly features and sustainable profitability for issuers and retailers. More and more, consumers are demanding flexible redemption procedures, longer validity dates, and a few fees, thus breaking down the generation of revenue, while administrative costs mount up. Inventory, promotions, technology upgrades to allow multi-channel redemption-anything and everything to manage it. Too generous policies eat away at margins; on the other hand, too restricting by way of terms will lower consumer satisfaction and redemption rates. Finding a proper balance between the needs of the consumer and the viability of commerce in a fiercely competing market requires the design of programs being focused on data, marketing, and analysis.

GIFT CARDS MARKET REGIONAL INSIGHTS

• NORTH AMERICA

North America holds the dominant Gift Cards Market share, with the United States Gift Cards Market at the forefront, and stands as a considerably matured and innovative gift card marketplace, backed by a robust retail infrastructure, high consumer spending, and a wide acceptance of digital payment solutions. E-gifting, mobile wallet integration, and personalized designs have become mainstream with some major retailers and tech platforms driving product innovation. Corporate gifting has been firmly established, with season-end promotions yielding meaningful sales. Fraud prevention systems and regulatory frameworks have long given the US market great consumer confidence. Cross-channel redemption remains high, on top of omnichannel marketing strategies to give that seamless customer experience. And because the competition is heated, brands are always trying to set themselves apart with collaborations, exclusive card designs, and added value.

• EUROPE

This European gift card market is variable due to consumers' choice, payment regulations, and retail environment differing from one country to another. Western European countries such as the UK, Germany, and France are swiftly adopting both physical and electronic cards as a result of having an established retail chain and further influence of e-commerce. These trends continue in Southern and Eastern Europe due to the growing adoption of digital payments and the growth of retail chains. Seasonal gift-giving traditions, such as Christmas markets and holiday bonuses, create an upswing in sales during peak periods. Strict regulatory requirements, from data protection to anti-money laundering, do impact program design. Cross-border acceptance, sustainability in card production, and mobile integration are areas retailers now focus on to make their offerings more appealing and accessible.

• ASIA

The gift card market in Asia is rapidly progressing, encouraged by the rising middle-class populations, adoption of e-commerce, and proliferation of smartphones. Markets like China, India, and Japan are innovating more, as they see good acceptance of digital and mobile wallet-integrated cards. Giving-based cultural traditions, such as festivals or weddings, create natural peaks in demand all throughout the year. Retailers and platforms are using gift cards to familiarize consumers with new product categories and develop brand loyalty. Cross-border e-gifting is further getting popularity, with younger generations making purchases from international brands. The strategic association between local merchants, fintech companies, and global marketplaces is ensuring commercial acceleration, making the landscape dynamic and highly competitive.

KEY INDUSTRY PLAYERS

Key Industry Players Shaping the Market Through Innovation and Market Expansion

In the overarching Gift Cards Marketplace, key global and regional competitors that would focus on innovation, enlargement of distribution avenues, and bettering of user experiences have bearing on the market dynamics. Amazon, Walmart, and Google Play, for example, use their largest retail or digital dimension to offset the integration of gift cards in their buying presentations. Specialty brands like Starbucks, Sephora, and IKEA use them to improve their own loyalty initiatives and drive repurchase. Among the common strategic thrusts are technology solutions such as instant digital delivery, mobile-wallet compatibility, and personalized designs. Many of these top players invest with fintech companies and payment processors to enhance acceptance networks and implement fraud-prevention measures that would not compromise on convenience.

LIST OF TOP GIFT CARDS COMPANIES

• Amazon (U.S.)
• iTunes (U.S.)
• Walmart (U.S.)
• Google Play (U.S.)
• Starbucks (U.S.)
• Home Depot (U.S.)
• Walgreens (U.S.)
• Sephora (France)
• Lowes (U.S.)
• Carrefour (France)
• JD (China)
• Best Buy (U.S.)
• Sainsbury’s (U.K.)
• Macy’s (U.S.)
• Virgin (U.K.)
• IKEA (Sweden)
• H&M (Sweden)
• Zara (Spain)
• AL-FUTTAIM ACE (UAE)
• JCB Gift Card (Japan)

KEY INDUSTRY DEVELOPMENT

May 2025: Amazon announced the launch of a brand-new AI-powered personalization engine for its digital gift cards to allow for greater customer involvement and higher redemption rates. The feature allows users to create engaging, dynamic card experiences with animations, messages, and product recommendations custom-processed on recipient browsing history and purchase history. This represents the development in demand for hyper-personalized gift options and AI integration into retail ecosystems. In offering customizations combined with instant delivery and mobile compatibility, Amazon is taming its gift card experience from a practical to almost an emotionally engaging one. This initiative should lay the groundwork for all future new digital gift-giving experience by the industry at large.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis considers both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth. The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.