Impressive 16.4% CAGR in the Gift Cards Market Size Driven by North America's Dominance
An increase in the use of smartphones and digital wallets is anticipated to create chances for the market for gift cards over the forecast period. Technological advances in product offerings, the growing adoption of digital gift cards in the United States and Canada.
New York, United States, Oct. 09, 2023 (GLOBE NEWSWIRE) -- A gift card is like a prepaid debit card in that it contains a fixed amount of money that may be spent on merchandise. Gift cards offer greater security than cash and are easily traceable, preventing fraudulent activity. “The global gift cards market size is projected to reach USD 3,845 billion by 2030, growing at a CAGR of 16.4% during the forecast period (2022–2030).” stated by Research Manager at Straits Research P. Ltd.
*Key Drivers*
Gift cards are considered like prepaid debit cards. These cards' convenience, flexibility, reliability, and security have made them more popular among consumers for payments. According to Worldpay's 2018, gift cards contribute 2% of eCommerce and 1% of the point of sale (POS) spending globally. For instance, VISA Inc., a US-based company, is continuously working to avoid payment disruption and revolutionize ways for consumers to pay more conveniently. It provides customer offerings in many new ways, including mobile and IoT through Visa Token Service, P2P through Visa Direct, and digitized and streamlined manual processes through Connected Card.
*Growth Opportunities*
In recent years, there has been an increase in demand for improved products and technology improvements linked with payment solutions. This expansion is driven by the existence of unmet needs and a surge in demand for enhanced transactional solutions in nations such as China, Japan, and Australia. Globally, the gift card business is shifting from physical to digital due to the increased use of mobile devices and internet access. In addition, an increase in the use of smartphones and digital wallets is anticipated to create chances for the market for gift cards over the forecast period.
*Regional Insights*
North America is the highest revenue contributor to the market and is estimated to grow a CAGR of 14.5% over the forecast period. This is attributed to government initiatives promoting the adoption of digital payments as alternatives to cash in numerous industries, including hospitality, banking, corporate institutions, and retail. Technological advances in product offerings, the growing adoption of digital gift cards in the United States and Canada.
Asia-Pacific is the fastest-growing and second-largest region. It is projected to grow at a CAGR of 18%. In addition, occasion-based gifting, personalized gifting, gifting throughout the holiday season, and corporate gifting contribute to the expansion.
Europe is the third-largest region. Numerous prepaid schemes developed by the Italian post office known as PostePay have led to increased gift card demand and acceptance in the region. Increased use of gift cards for online purchases, travel, and delivery to children as a cash substitute also promotes the rise of gift cards in Germany and Italy.
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*Key Highlights*
· The Retail Establishment segment is the highest contributor to the market and is estimated to grow at a CAGR of 14.3%
· By card type, the global gift cards market is segmented into Closed Loop and Open Loop Gift Cards. The Closed Loop Card segment is the highest contributor to the market and is estimated to grow at a CAGR of 15.2% over the forecast period.
· By end-user, the global gift cards market is segmented into Retail Establishments and Corporate Institutions.
*Competitive Landscape*
Key players in the global gift cards market are *Amazon.com, Inc., American Express Company, Blackhawk Network Holdings, Inc., Fiserv, Inc., Givex Corporation, InComm Payments, PayPal, Inc., Paytronix Systems, Inc., Qwikcilver Solutions Pvt Ltd., and Walmart Inc*.
*Market News*
· In July 2022, American Express and the National Trust for Historic Preservation announced the 25 US historic independent restaurants would collectively receive USD 1 million in grant funding through the "Backing Historic Small Restaurants" grant program.
· In June 2022, Global branded payments provider Blackhawk Network partnered with Restaurant.com, owned and operated by RDE, Inc. (OTCQB: RSTN), to expand distribution of the dining deal site's gift card program, which will now feature eGift options offered on GiftCardMall.com.
· In June 2022, Blackhawk Network and LibertyX made cryptocurrency more accessible by enabling consumers to purchase bitcoin using their LibertyX accounts at participating US merchants, including Fresco y Más, Harveys Supermarkets, Southeastern Grocers, Tops, Weis, and Winn-Dixie.
*Global Gift Cards Market: Segmentation*
*By Type*
· Closed Loop Gift Card
· Open Loop Gift Card
*By End-user*
· Retail Establishments
· Corporate Institutions
*By Regions*
· North America
· Europe
· Asia-Pacific
· LAMEA
*About Straits Research Pvt Ltd.*
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