Gift Cards Market Analysis

Card Type (Closed-loop, Open-loop)

Closed-loop segment is predicted to account for more than 64% gift cards market share by the end of 2036. Significant growth in the revenue share is anticipated as a result of the impact on brand recognition. Closed-loop gift cards ensure that gift card recipients return to the business to use them, which is profitable for businesses because they can only be used at one location or under one corporate brand. In addition, to help stop fraud and unauthorized use, advanced security features like magnetic stripes, PINs, or special activation codes are generally included.

Moreover, a lot of retailers allow customers to link or register their gift cards with online accounts, giving them the ability to monitor transactions, check their balance, and report issues right away. The World Bank published a report in 2022 estimating that about 2/3^rd of global adults now receive and make digital payments which is an increase of 22% to cross 57% from 2014 to 2021. Growth in this sector will boost the digital experience platform value in the near future.

End use (Retail Establishment, Corporate Institutions)

Retail establishment segment in the gift cards market is expected to register over 14.5% growth till 2036. This tremendous gain is credited to the large customer base coupled with the well-known brands that are common among retail enterprises. Gift cards from big retail chains, department stores, and specialty stores are set to be more valuable as they are well-known brands. The National Retail Federation shared their forecast about annual retail sales for 2024, it is estimated that retail sales will have a growth rate of more than 2.5% with a size of about USD 5.26 trillion as compared to USD 5.1 trillion in 2023.

Additionally, consumers who are familiar with these well-known brands and believe in their products & services and frequently prefer them to favor giving or receiving gift cards from these companies.

Our in-depth analysis of the global market includes the following segments:

Card Type	Closed-loop Open-loop
End use	Retail Establishment Corporate Institutions

Frequently Asked Questions (FAQ)

In the year 2023, the industry size of the gift cards market was over USD 985.1 billion.

The market size of gift cards is projected to cross USD 8195.4 billion by the end of 2036 expanding at a CAGR of 19.3% during the forecast period i.e., between 2024-2036.

The major players in the market are Walmart, Paytronix Systems, Blackhawk Network, Fiserv Inc., Amazon, InComm Payments LLC, Givex Corporation, PayPal, American Express, Foodpanda, and others.

In terms of card type, the closed-loop segment is anticipated to garner the largest market share of 64.0% by 2036 and display significant growth opportunities during 2024-2036.

The market in North America is projected to hold the largest revenue share of 45.0% by the end of 2036 and provide more business opportunities in the future.

Gift Cards Market Analysis