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Unlocking New Frontiers of the Modern Gift Cards Market

i. A major opportunity is developing from the creator economy. Influencers and streamers are emerging as a direct source of gift card distribution. Fans buy digital gift cards for gaming, streaming or e-commerce platforms and send them directly to their favorite creators as a monetary support. This opens a new, highly involved B2C2B (Business-to-Consumer-to-Business/Creator) model of operations. Companies can work with creators to launch co-branded cards to tap into niche, loyal audiences and drive sales with authentic endorsements. This channel provides a direct channel to millions of digitally native consumers who are looking for new ways to interact with online personalities.

ii. Another strong trend is the expansion of experiential and service-based gift cards. The gift cards market is also moving away from conventional retail products to include other services such as online courses, wellness retreats, travel vouchers, and unique local activities. Consumers put more importance on memorable experiences instead of material goods. This shift opens the gift cards market to completely new sectors such as education, hospitality and entertainment. Businesses in these industries can use the power of gift cards to lock in future revenue, create new customers, and provide to the expanding market for meaningful and non-physical gifts, diversifying their customer acquisition strategies.

Loyalty Programs are Supporting Next-Generation Customer Loyalty and Retention

The integration in the customer loyalty programs is a key demand driver in the gift cards market. Instead of being a reward, gift cards are now a dynamic engagement tool. In 2024 it is estimated that more than 5 billion loyalty points will be redeemed into gift cards. As a result, the number of brands that incorporate instant digital gift card rewards into their loyalty applications is predicted to hit 750. The value of a loyalty-issued gift card is on average now US$ 35, so that this is a considerable and attractive incentive. Further strengthening brand identity, exclusive member-only gift card designs will be created in the estimated 10,000 designs for 2025.

This strategy works wonders in the gift cards market in terms of an extended connection with the customer. Brands are expected to send more than 2 million "surprise and delight" gift cards to their best-tier loyalty members in 2024. Mobile engagement is also important with more than 200 million push notifications for loyalty-based gift card offers expected in 2025. Expanding the ecosystem: more than 300 major co-branded loyalty gift cards with partner companies are expected to be launched. A big retention strategy is personalization, estimated that 25 million loyalty members are set to receive a birthday gift card. The result is tangible, the average increase in spending when using a loyalty-earned gift card is US$ 18. Customer support calls regarding loyalty card redemption will reach 1 million, a sign of a high level of user involvement.

BNPL Services are Opening a New High-Value Gift Card Customer

The intersection with Buy Now, Pay Later (BNPL) services is driving a new and powerful demand stream within the market for gift cards. BNPL is allowing consumers to buy gift cards with a higher value with a spread of cost over time. The number of BNPL transactions for gift card purchases is expected to reach 30 million in 2024. This has led to an average value of a gift card bought with BNPL at US$ 150. During the 2024 holiday season, there is an estimated 10 million consumers using BNPL on their gift card shopping. Acknowledging this trend, the number of the top BNPL providers providing dedicated marketplaces for gift cards will reach 15 by 2025.

The synergy is creating new purchasing behaviors and also expanding the gift cards market. The volume of e-gift cards worth over US$ 200 bought using BNPL is predicted to reach 5 million in 2025. The number of fintech apps combining both BNPL and gift card options is expected to reach 100. This is also bringing some new risks, with chargebacks on BNPL gift card purchases expected to reach 500,000. Nevertheless, the growth is undeniable, with an estimated 4 million first-time buyers of gift cards using BNPL in 2024. The overall number of installment payments on gift card purchases is projected to be more than 120 million in 2025, with consumers purchasing an average of 3 gift cards at a time on BNPL transactions.

 Segmental Analysis 

Closed-Loop Cards Cement Loyalty & Attract Corporate Spending

By type, closed loop gift cards led with 39.63% share of the gift cards market in 2024, as a powerful tool in brand equity and repeat business. Unlike open-loop cards, these retailer-specific cards guarantee that money is spent within an ecosystem, consequently increasing sales and customer retention. This structure is extremely favorable to the merchant who also receives the benefit of reduced processing costs. The application of these cards further explains the success of these cards as they capture the biggest market share of 27.89% in 2024, which is mainly contributed by the corporate B2B sector. Businesses often use these cards for employee rewards and incentive programs. 72% of total gift card sales during the first half of 2024 were for B2B sales.

Moreover, the trend of "self-use" is another major contributor, where consumers are increasingly buying closed-loop cards for their own budgeting, as well as to avail exclusive discounts. In April 2024, for example, 43.8% of self-use purchasers cited money management as a reason for their purchase of the cards. This behaviour is amplified by the integration of loyalty, as users spend their money they will often see rewards, leading to a powerful incentive to keep spending with the brand. The leisure sector has experienced phenomenal growth with a 15.5% growth in the first half of the year as consumers prefer experiential gifts. This combination of corporate adoption and consumer usage of their own lead to the segment solidifying its leading position in the gift cards market.

• The average value of unsurvived gift cards per capita rose to US$ 187 in 2023, in many cases resulting in pure profit for retailers.
• Starbucks, one of the leading companies in this model, enjoys savings from transaction fees by users who load funds once for a number of small purchases.
• The card load value for the retail prepaid market is estimated to reach US$ 333 billion to around US$ 455 billion in 4 years.

Online Channels Command Distribution Through Unexcelled Convenience

The online sales segment has clearly won the gift cards market with the highest share of 61.36% in 2024; this trend has been driven by the global shift to e-commerce and digital payment. The basic argument is convenience. 63% of consumers say immediate delivery is a key reason for using digital gift cards. Correspondingly, this is especially the case for last-minute shoppers: 78% of consumers send digital cards immediately after purchase. The rise of mobile is a key enabler; three out of four consumers are now using digital wallets, and with that the storing and redemption of gift cards on a smartphone has become second nature. In the first half of 2024, digital gift cards exceeded physical cards in terms of market share for the first time, with a market share of more than 50% of the total sales.

This digital supremacy is echoed in expenditure behaviours, with 66% of all digital gift cards bought for self-use, usually to stay on top of budgets or take advantage of online-only offers. The integration with retailer apps and mobile wallets without real interruptions have made the user experience a frictionless one. As a result, the growth in this part of the gift cards market has been explosive with sales of digital cards increasing by 17.1% in the first half of 2024 alone. The fact that e-gift cards can be personalized with messages and even customized designs makes them even more appealing to the consumer, making the online channel the undisputed leader in the minds of the modern consumer.

• The global digital gift card market is projected to increase from US$ 323.31 billion in 2024 to US$ 358.90 billion in 2025.
• More than 70% of millennials say they prefer digital e-gift cards over the physical alternative.
• AI is used increasingly when making suggestions for personalized gift card options with almost 50% of consumers using AI for gift suggestion.

Individual Consumers Keep the Market Going with Personal Gifting

The individuals (B2C) segment showed its tremendous strength by creating a major market share of 59% in global gift cards market. This dominance is based on the modern consumer's preference for convenience and flexibility in gift giving. A study conducted in 2025 proved that 81% of consumers had bought a gift card in the past year, an increase of 6% from the previous year. Birthdays are still the number one occasion for purchases at 76% of the consumers, closely followed by winter holidays at 70%. This high volume is also a product of recipient preference; the overwhelming 96% of people were equally satisfied or happier receiving a gift card in comparison with a physical gift.

Furthermore, gift cards serve as a powerful tool for customer acquisition and spending. According to a survey in 2025, 57% of the recipients said that a gift card would encourage them to try out a new business. Once in the store or on the website, consumers often spend more than the face value of the card they are using, with 61% reporting on average overspending of US$31.75. Personalization is also an important consideration. 63% of buyers preferred themed designs instead of regular store branded designs, which seems to indicate a desire for a more thoughtful presentation. This combination of high frequency of purchase and tendency to lead to trying something new and higher sales solidifies the position of the B2C segment in controlling the market for gift cards.

• Card consumers are now one in three, buying a combination of both physical and digital cards, depending on the occasion.
• In 2024, 23% of consumers said they have plans to spend more on gift cards than they did in the past year.
• Millennials and Gen Z are twice as likely to buy gift cards as Baby Boomers, which suggests that there will be high demand in the future.

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Regional Analysis 

North America Digital Dominance Is Changing the Gift Cards Market

North America holds the commanding market share of 46.82% in the global gift cards market. Its leadership comes with profound digital integration and extensive corporate adoption. In the United States, the average corporate bulk order in digital gift cards was reaching US$ 7,500 in 2024. As a result, today more than 500,000 US businesses are using e-gift cards to promote their sales. Consumer behavior is equally advanced with an estimated 40 million shoppers in the U.S. set to load a gift card directly into a retail app in 2025. Furthermore, the average number of gift cards stored for one person in Canada's mobile wallet is estimated to be 6 by 2025.

The maturity of the region throughout the gift cards market is reflected in select high growth markets. The US restaurant industry, for example, is projected to have 200 million e-gift card transactions in 2024. In Canada, the average value of a gift card that would be bought for a birthday is projected at US$ 60 in 2025. The self-use trend is also strong with the average American consumer expected to spend an additional US$ 42 over and above the value of a card. Digital redemption is the norm with an estimated 1 billion gift card redemptions through QR code expected in North America in 2025. Finally, the B2B space is continuing to grow with projections that 25 million gift cards will be used for employee wellness programs in the U.S. alone, and Canadians are projected to purchase 15 million gift cards for holiday corporate gifting in 2024.

Mobile-First Approach of Asia Pacific Is Fueling Explosive Market Growth

The Asia Pacific gift cards market is defined by the rapid mobile-first growth. In China, transactions through gift cards in super-apps such as WeChat and Alipay are expected to reach 1.5 billion in 2025. Social gifting is a major driver of this, with an estimated 500 million e-gift cards to be exchanged via social media platforms across the region in 2024. India's market is also booming with projections indicating 100 million gift cards to be sold through e-commerce marketplaces such as Flipkart and Amazon India. The average load value of the digital gift card in Japan is predicted to reach JPY7,000 in 2025.

Cross-border gifting is another important dynamic of the gift cards market, with an estimated 40 million gift cards transactions coming from Australia to other APAC countries. Gaming is a huge industry; in South Korea, the market for digital gift cards to purchase online gaming credits is expected to reach 75 million in 2024. Furthermore, there is an increased corporate adoption, 200,000 small and medium-sized enterprises across the region are expected to adopt gift card-based incentive programs. The number of loyalty points to be converted to gift cards in India is going to reach 3 billion in 2025. Finally, the average number of brands that a consumer holds gift card for in China is 8, while the number of Australian consumers expected to redeem 50 million gift cards through in-app purchases.

Europe's Emphasis on Experience and Omnichannel is Opening up Market Horizons

Europe's Gift Cards Market is evolving - with a heavy focus on experience and seamless omnichannel integration. In the United Kingdom, the number of experiential gift cards for things such as spa days and dining is projected to reach 30 million in 2024. Germany is experiencing a growth of corporate use, with an average of 200 e-gift cards per bulk B2B order. French retailer innovating, over 1,000 stores are expected to provide instant digital gift card issuance at the point of sale by 2025. The average value of a corporate incentive gift card in the UK is predicted to be GBP 80.

The drive toward sustainability is also influencing demand with an estimated 50 million paper-based or recycled gift cards to be sold across Europe in 2024. In Germany, the number of gift cards redeemed for online grocery orders is going to hit 25 million. French consumers in the gift cards market are predicted to store 40 million gift cards in mobile apps that are retailer-specific. Moreover, the number of European companies that use gift cards for cross-border employee rewards is expected to total 75,000. In the UK, consumers are expected to spend an extra GBP25 more than the value of the card. Lastly, multi-brand gift cards that can be redeemed at multiple retailers are projected to close 60 million transactions on the continent in 2025.

Recent Developments Shaping the Competitive Landscape of Gift Cards Market 

• Engage People Inc. Acquires Loyalty Source (2024): The loyalty and rewards technology provider acquired Loyalty Source to strengthen its experiential rewards offerings with Loyalty Source, which is a significant trend in the gift card and incentives space.
• PerfectGift.com Receives Strategic Investment (2024): The corporate gifting platform operating in the gift cards market received an important investment from Clarion Capital Partners to drive its growth and tech development as a B2B gift cards solutions.
• InComm Payments Acquires The Card Network (TCN) (2024): InComm Payments continues to make a footprint in Australia and New Zealand by acquiring TCN, a well-known gift card provider in the region.
• CashStar Parent Company Blackhawk Network Expands B2B Services (2024): After its acquisition of Tango, BHN continues to invest heavily in integrating and expanding the company's B2B gift card and rewards platform globally.
• GiftRound Secures Further Investment for Growth (2024): The UK-based group gifting platform announced that it received a new round of funding for the enhancement of its platform, which helps in the pooling of funds to buy gift cards for occasions.

Top Companies in the Gift Cards Market 

• Amazon.com Inc.
• American Express Company
• Best Buy
• Blackhawk Network
• EBIXCASH WORLD MONEY INDIA Ltd.
• Fiserv, Inc.
• InComm Payments LLC
• Mastercard
• PayPal, Inc.
• Qwikcilver Solutions Pvt Ltd.
• Sephora USA, Inc.
• Shift4 Payments, LLC
• Starbucks Corporation
• Target Brands, Inc.
• The Home Depot
• Valve Corporation
• Visa Inc.
• Walmart Inc.
• Other Prominent Players

Market Segmentation Overview

By Type

• Closed-Loop Gift Cards
• Open-Loop Gift Cards
• E-Gift Cards
• Physical Gift Cards
• Promotional & Loyalty Gift Cards
• Others

By Type of Consumer

• Individuals (B2C)
• Businesses/Corporate (B2B)
• Institutional/Non-Profit Organizations

By Application

• Consumer Gifting
• Corporate Gifting & Incentives
• Online Shopping & E-Commerce
• Travel & Hospitality
• Food & Beverages
• Entertainment & Media
• Healthcare & Wellness
• Others

By Region

• North America
  • The US
  • Canada
  • Mexico
• Europe
  • Western Europe
    • The UK
    • Germany
    • France
    • Italy
    • Spain
    • Rest of Western Europe
  • Eastern Europe
    • Poland
    • Russia
    • Rest of Eastern Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia and New Zealand
  • South Korea
  • ASEAN
  • Rest of Asia Pacific
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • UAE
  • Rest of MEA
• South America
  • Argentina
  • Brazil
  • Rest of South America