Gift Cards Market Size, Share, Growth, and Industry Analysis, By Types (Open Loop, Closed Loop, E-gifting) , Applications (Accommodation, Delicacy, Spa Service, Others) and Regional Insights and Forecast to 2033

Gift Cards Market Size

The global Gift Cards Market Size was valued at USD 1,383.67 million in 2024 and is projected to reach USD 1,399.59 million in 2025, further growing to USD 1,533.65 million by 2033. With a CAGR of 1.15% during the forecast period (2025-2033), the market is witnessing steady growth, driven by the expansion of digital payment solutions and increasing e-commerce transactions.

The US Gift Cards Market Size is expanding due to rising consumer preference for contactless transactions, growing corporate gifting trends, and enhanced security features in digital gift cards. The increasing adoption of personalized and reloadable gift cards is further boosting market demand.

The Gift Cards Market is experiencing rapid expansion, driven by evolving consumer purchasing behavior and increasing digital transactions. The market is significantly influenced by rising e-commerce penetration, with online gift card purchases growing by 65% over the past few years. Digital gift cards are gaining traction, accounting for nearly 70% of total sales.

Retailers are leveraging innovative strategies, such as personalized and reloadable cards, which have seen an adoption surge of 50%. The growing preference for contactless payments has boosted the demand for mobile-based gift cards, with smartphone-based transactions contributing to nearly 80% of the total market engagement.

Gift Cards Market Trends

The Gift Cards Market is witnessing substantial changes, driven by technological advancements and changing consumer spending patterns. The adoption of digital gift cards is surging, with 75% of users preferring e-gift cards over traditional physical cards. Businesses are leveraging them as promotional tools, with corporate gift card usage rising by 60% in employee incentive programs. The popularity of open-loop gift cards has increased, accounting for nearly 55% of the total market share.

Furthermore, prepaid and store-specific gift cards are gaining momentum, with retail-focused cards holding 65% of the market. Mobile wallet integration with gift cards has enhanced convenience, contributing to a 70% increase in mobile-based redemptions. Subscription-based gift cards are also on the rise, growing by 45%, primarily fueled by entertainment, gaming, and streaming platforms.

Another key trend is the rising preference for sustainability, with 50% of consumers opting for digital gift cards to reduce plastic waste. Seasonal and festive shopping boosts sales, with holiday-related purchases making up 40% of the annual transactions. Cross-border gift card transactions have also expanded, increasing by 35% due to the growing acceptance of international e-commerce. This ongoing evolution highlights the market's shift toward personalization, flexibility, and digital-first solutions.

Gift Cards Market Dynamics

The Gift Cards Market is shaped by various dynamic factors, including technological integration, consumer preferences, and evolving retail strategies. The market is benefiting from rising e-commerce penetration, with online platforms driving over 65% of total sales. Innovations such as blockchain-based gift cards and AI-driven personalization have enhanced customer engagement by 55%. However, fraud concerns persist, with fraudulent activities affecting nearly 30% of digital gift card transactions. Retailers are capitalizing on omnichannel distribution, with in-store and digital card purchases growing collectively by 60%.

DRIVER

" Growing E-commerce Expansion"

The rise of online shopping has significantly impacted the Gift Cards Market, with digital transactions contributing to over 75% of total purchases. The growing preference for digital payment solutions has led to a 60% increase in virtual gift card adoption. Businesses are capitalizing on this trend, with loyalty program-driven gift card usage surging by 50%. The convenience of instant delivery and integration with mobile wallets has further propelled growth, with mobile-based gift card transactions rising by 70%. Additionally, corporate gifting programs have expanded, with businesses increasing gift card incentives by 55% to boost employee engagement.

RESTRAINT

" Rising Fraud and Security Concerns"

Despite the growing demand, security issues remain a critical challenge for the Gift Cards Market. Fraudulent transactions have impacted approximately 30% of digital gift card users, leading to increased consumer skepticism. Cybercriminal activities, such as phishing and unauthorized access, have surged by 45%, affecting the credibility of online gift cards. Retailers are investing in enhanced security measures, with authentication technologies improving fraud detection rates by 50%. However, regulatory challenges and data privacy concerns have hindered adoption, with nearly 40% of consumers expressing concerns over personal data security while purchasing or redeeming digital gift cards.

OPPORTUNITY

" Expansion in Emerging Markets"

The Gift Cards Market is witnessing significant growth opportunities in emerging economies, with gift card adoption increasing by 65% in developing regions. The rapid expansion of digital payments and e-commerce penetration has contributed to a 70% rise in prepaid card usage. The demand for personalized and experiential gifting is also driving growth, with customized gift cards witnessing a 50% increase in consumer preference. Additionally, fintech innovations and mobile-based platforms have expanded accessibility, with digital wallet-based gift card usage growing by 60%. The increasing disposable income and tech-savvy younger population further contribute to the rising market potential.

CHALLENGE

" Limited Consumer Awareness & Redemption Issues"

One of the biggest challenges in the Gift Cards Market is the issue of unredeemed balances, with nearly 35% of consumers forgetting or delaying their gift card usage. Expiry policies and hidden fees have led to a 40% dissatisfaction rate among buyers. Additionally, limited awareness about the benefits of digital gift cards has resulted in slow adoption, with 30% of users still preferring traditional gifting methods. Retailers face logistical challenges, with refund and exchange policies causing disputes in 25% of cases. Addressing these issues through improved transparency and customer education will be crucial in driving future growth.

Segmentation Analysis 

The Gift Cards Market is segmented based on type and application, catering to diverse consumer needs. By type, the market is classified into Open Loop, Closed Loop, and E-Gifting, each serving different purchasing preferences. Open-loop gift cards are widely accepted across multiple retailers, while closed-loop cards are restricted to specific brands. E-gifting is gaining traction due to its digital convenience. By application, gift cards are used across various industries, including Accommodation, Delicacy, Spa Services, and Others. The hospitality sector sees significant gift card usage, with hotels and restaurants leveraging them for customer engagement and loyalty programs.

By Type

• Open Loop Gift Cards: Open-loop gift cards are gaining popularity, accounting for nearly 55% of total market transactions. These cards, issued by major financial institutions, can be used across multiple retailers and platforms, making them highly versatile. The integration of open-loop cards with mobile wallets has increased their usability, with 70% of users opting for contactless payments. Additionally, businesses leverage these cards for corporate gifting, with 65% of companies incorporating them into employee rewards programs. The growing demand for cross-border transactions has also fueled adoption, with international usability contributing to a 45% rise in global gift card purchases.
• Closed Loop Gift Cards: Closed-loop gift cards are retailer-specific and account for 40% of the market. These cards are primarily issued by brands in the retail, hospitality, and entertainment sectors, offering consumers store-centric rewards and loyalty benefits. Retailers report a 30% increase in repeat customers due to closed-loop gift cards. The restaurant industry significantly benefits, with 50% of food chains offering promotional gift card deals. Additionally, subscription-based services, including gaming and streaming platforms, have seen a 55% rise in closed-loop card redemptions, enhancing user retention and engagement.
• E-Gifting: E-gifting is the fastest-growing segment, with digital gift cards contributing to 75% of total market transactions. Consumers favor e-gifting due to instant delivery, security, and ease of redemption. The holiday season and special occasions drive over 60% of e-gift card purchases. Mobile-based transactions dominate, with 80% of digital gift card redemptions occurring through smartphones. Businesses are leveraging AI-based personalization, leading to a 50% increase in customized e-gift card sales. Additionally, social media and messaging apps facilitate e-gifting, contributing to a 35% rise in peer-to-peer digital gift card exchanges.

By Application

• Accommodation: Gift cards in the accommodation sector are widely used for hotel bookings and travel experiences. 60% of hospitality brands offer gift cards to attract loyal customers and boost seasonal sales. Online travel agencies report a 45% increase in hotel gift card redemptions. Luxury hotel chains contribute significantly to this market, with 35% of high-end bookings made via gift cards. The rising popularity of experiential travel has driven a 50% growth in vacation gift card purchases. Additionally, business travelers utilize corporate hotel gift cards, with 40% of companies offering travel incentives through prepaid cards.
• Delicacy: Restaurant and food-related gift cards account for 35% of total market sales, driven by increased consumer spending on dining experiences. Fast-food chains and fine dining restaurants witness 50% of redemptions during holidays and special occasions. Mobile ordering has increased restaurant gift card usage by 55%, with digital payments enabling seamless transactions. Subscription-based meal services also contribute, with 40% of users preferring prepaid meal gift cards. Additionally, coffee chains and bakery gift cards see consistent demand, with 30% of consumers using them for frequent purchases.
• Spa Service: The wellness industry sees growing demand for gift cards, with spa services accounting for 25% of gift card sales. Luxury spa resorts and wellness retreats witness a 40% rise in gift card bookings. Health-conscious consumers increasingly opt for self-care experiences, leading to a 35% surge in spa and massage gift card redemptions. Digital platforms have enhanced accessibility, with 50% of spa service bookings made via mobile gift cards. Additionally, corporate wellness programs include spa gift cards as incentives, contributing to a 45% increase in business-sponsored wellness redemptions.
• Others: Other applications include gift cards for gaming, entertainment, and retail shopping, collectively accounting for 50% of the market. Streaming platforms, gaming subscriptions, and digital content purchases drive a 55% surge in entertainment gift cards. Retail shopping remains a dominant category, with 60% of consumers using prepaid cards for online and in-store purchases. Fitness and gym membership gift cards have gained traction, witnessing a 35% increase in adoption. Additionally, educational gift cards for online learning and certification programs have risen by 40%, highlighting the diversification of gift card applications beyond traditional categories.



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Gift Cards Regional Outlook

The Gift Cards Market exhibits strong growth across North America, Europe, Asia-Pacific, and the Middle East & Africa. North America dominates, with digital transactions comprising 80% of gift card sales. Europe follows, driven by the expanding adoption of prepaid solutions in retail and corporate sectors. Asia-Pacific is witnessing rapid digitalization, with mobile-based gift card purchases increasing by 70%. The Middle East & Africa is an emerging market, with hospitality and travel gift cards experiencing a 50% rise. Regional trends highlight a shift toward contactless and e-gifting solutions, further boosting market expansion.

North America 

North America leads the Gift Cards Market, with the U.S. contributing 75% of the region’s total transactions. Digital gift cards dominate, accounting for 85% of sales. Corporate incentives drive 60% of gift card redemptions. The holiday season fuels peak sales, with 40% of annual gift card transactions occurring between November and December. Open-loop gift cards are highly popular, comprising 55% of the market. The retail sector remains the largest contributor, with e-commerce giants witnessing a 65% surge in digital gift card purchases. Additionally, the integration of blockchain for secure transactions has grown by 35%.

Europe

Europe’s Gift Cards Market is expanding, with Germany, the U.K., and France driving over 70% of regional sales. Digital gift cards account for 65% of total purchases, fueled by contactless payment adoption. The restaurant and hospitality sectors experience 50% of gift card redemptions. Closed-loop cards remain popular, comprising 45% of transactions. E-gifting is on the rise, with mobile-based purchases increasing by 60%. Retailers leverage loyalty-driven gift cards, contributing to a 40% boost in customer retention. Additionally, government regulations supporting prepaid transactions have led to a 30% rise in corporate-sponsored gift card programs.

Asia-Pacific

Asia-Pacific is witnessing rapid growth in the Gift Cards Market, driven by rising digital adoption. Mobile-based gift card purchases have surged by 70%, with China, India, and Japan being key contributors. The gaming industry dominates, with 50% of prepaid cards used for in-game purchases. E-commerce platforms report a 65% rise in digital gift card transactions. The hospitality sector also thrives, with travel-related gift cards growing by 45%. Contactless payments and QR-based redemptions have seen a 60% increase. Additionally, corporate gifting programs have expanded, with businesses integrating gift cards into 55% of employee incentive schemes.

Middle East & Africa 

The Gift Cards Market in the Middle East & Africa is emerging, with UAE, Saudi Arabia, and South Africa driving demand. The hospitality industry dominates, with travel gift cards experiencing a 50% rise in adoption. E-gifting is gaining momentum, with 40% of digital redemptions occurring via mobile apps. Retailers witness a 35% growth in prepaid card sales, while online gaming gift cards have increased by 45%. Corporate gifting trends are evolving, contributing to a 30% expansion in business-issued gift cards. Additionally, government-backed digital payment initiatives have led to a 25% rise in prepaid card acceptance.

LIST OF KEY GIFT CARDS MARKET COMPANIES PROFILED

• Expedia Group
• Airbnb
• Hilton
• Hyatt
• Choice Hotels International
• Marriott International
• Radisson Hotel Group
• Four Seasons Hotels and Resorts
• Accor
• Wyndham Hotels & Resorts
• Best Western
• IHG Hotels & Resorts

Top 2 Companies with Highest Market Share

• Marriott International – Holds approximately 20% of total gift card transactions, driven by strong loyalty programs and extensive hotel chain coverage.
• Airbnb – Accounts for nearly 18% of the market, fueled by the growing trend of alternative accommodations and digital gift card adoption.

Investment Analysis and Opportunities

The Gift Cards Market is attracting significant investments, particularly in the digital and mobile-based gift card segments. In 2023, fintech companies and retailers collectively invested over $3 billion in expanding their gift card infrastructure, with a strong focus on security enhancements and AI-driven personalization. Contactless and QR-based gift card transactions grew by 55%, prompting businesses to allocate 40% of their digital payment budget to gift card integrations.

Venture capital and private equity firms have been particularly active, funding startups specializing in blockchain-based gift cards, which saw a 35% increase in adoption. Retailers and hospitality brands are also investing in omnichannel loyalty programs, with 60% of them linking gift cards to customer rewards. Corporate gifting programs have expanded, with businesses increasing spending by 50% to enhance employee incentives.

Cross-border gift card transactions have surged by 45%, encouraging global brands to develop region-specific offerings. Mobile wallet providers are partnering with banks, investing over $500 million in seamless prepaid card solutions. Additionally, sustainability-driven investments are growing, with 30% of new gift card initiatives focusing on reducing plastic waste through digital alternatives. These trends indicate continued market expansion and high growth potential for digital-first solutions.

New Product Development 

The Gift Cards Market is witnessing rapid innovation, with brands introducing AI-powered, blockchain-secured, and personalized gift cards to enhance consumer engagement. In 2023, over 500 new digital gift card variants were launched, catering to diverse sectors such as retail, travel, dining, and entertainment. Personalized e-gift cards saw a 45% increase in demand, with brands integrating customization options based on user preferences and past purchase behavior.

Subscription-based gift cards emerged as a key trend, with streaming platforms and gaming services reporting a 55% increase in prepaid card redemptions. Retailers launched reloadable gift cards, leading to a 30% rise in repeat transactions. Blockchain-backed gift cards gained traction, with secure, fraud-resistant transactions growing by 40%.

Hospitality and travel brands introduced experience-based gift cards, allowing consumers to book vacations and exclusive stays. Mobile-integrated gift cards, supporting NFC and QR payments, surged in popularity, with 65% of transactions occurring via smartphone apps. Additionally, AI-driven fraud detection mechanisms were embedded in new digital gift card systems, reducing fraudulent activities by 50%. These advancements highlight the industry's shift towards digital, secure, and highly personalized gifting experiences.

Recent Developments by Manufacturers in the Gift Cards Market 

The Gift Cards Market saw major developments in 2023 and 2024, with leading brands expanding their offerings and improving digital infrastructure. In January 2023, Amazon introduced a customizable digital gift card feature, allowing users to add video messages, driving a 30% increase in e-gift card engagement.

In March 2023, Apple launched Apple Wallet-integrated prepaid gift cards, leading to a 40% rise in mobile redemptions. Starbucks revamped its loyalty-driven gift card program, witnessing a 50% increase in customer retention. Google Pay and PayPal expanded their prepaid card support, enhancing international usability and leading to a 35% boost in cross-border transactions.

Retailers like Walmart and Target introduced eco-friendly digital gift cards, reducing plastic waste by 25% in 2023. Hotels and airlines launched subscription-based travel gift cards in August 2023, resulting in a 45% increase in travel redemptions.

In February 2024, Visa and Mastercard strengthened security protocols, decreasing fraudulent transactions by 50% through AI-based detection systems. Fintech startups raised over $500 million in funding to enhance blockchain-based gift card security. These advancements underscore the industry's push toward digital transformation, fraud prevention, and enhanced user experience in gift card transactions.

REPORT COVERAGE of the Gift Cards Market

The Gift Cards Market Report provides an extensive analysis of market dynamics, investment trends, and emerging opportunities. It covers market segmentation by type (Open Loop, Closed Loop, E-Gifting), application (Accommodation, Retail, Dining, Travel, Spa, and Others), and regional outlook (North America, Europe, Asia-Pacific, Middle East & Africa).

The report highlights key market drivers, such as rising digital transactions, increasing corporate gifting programs, and mobile payment integration, which have boosted adoption by 60%. It also addresses restraints, including fraudulent transactions and security concerns, which affected nearly 30% of digital users in 2023.

A detailed investment analysis is provided, covering venture capital trends, fintech collaborations, and blockchain-based security enhancements, with fintech firms investing over $3 billion in 2023 alone. The report also discusses new product innovations, such as AI-powered personalized gift cards, reloadable prepaid cards, and eco-friendly digital gift solutions, which grew by 40% in demand.

Additionally, the report includes key industry players, their market share, and strategic developments, highlighting recent partnerships, acquisitions, and product launches. It offers data-driven insights to help businesses capitalize on emerging trends and enhance their competitive positioning in the evolving gift cards market.