Market Overview:

According to IMARC Group's latest research publication, "Digital Gift Card Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2025-2033", The global digital gift card market size reached USD 453.4 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 1,531.5 Billion by 2033, exhibiting a growth rate (CAGR) of 13.32% during 2025-2033.

This detailed analysis primarily encompasses industry size, business trends, market share, key growth factors, and regional forecasts. The report offers a comprehensive overview and integrates research findings, market assessments, and data from different sources. It also includes pivotal market dynamics like drivers and challenges, while also highlighting growth opportunities, financial insights, technological improvements, emerging trends, and innovations. Besides this, the report provides regional market evaluation, along with a competitive landscape analysis.

How AI is Reshaping the Future of Digital Gift Card Market

• AI-powered personalization drives 68% higher recipient satisfaction, with platforms using machine learning to recommend gift cards based on consumer preferences and purchase history.
  
  
• Digital gift card generators leverage AI to create unique, customized designs in seconds, with 82% of consumers preferring brands offering personalized digital gifts.
  
  
• Blockchain technology integrated with AI enhances security by 45%, creating immutable transaction records and reducing gift card fraud risks through real-time threat detection.
  
  
• Companies deploy AI-driven fraud monitoring systems that analyze redemption patterns, flagging unusual activity and preventing unauthorized transactions across millions of digital gift cards annually.
  
  
• Automated gift card management uses AI for balance tracking, notification systems, and order fulfillment, streamlining operations while offering customers personalized video messages and AI-generated imagery.

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Key Trends in the Digital Gift Card Market

• Digital Overtakes Physical for the First Time: Digital gift cards captured over 50% market share in the first half of 2024, growing at 17.1% with consumers embracing convenience and instant delivery. The B2B segment accounts for 72% of total sales, demonstrating strong corporate adoption for employee incentives and loyalty programs.
  
  
• E-Commerce Integration Drives Accessibility: Online platforms like Amazon, Walmart, and Starbucks seamlessly integrate digital gift cards, with the online distribution channel valued at USD 523.4 billion in 2024. Black Friday 2023 saw digital gift card sales surge 15% year-over-year through targeted promotions and cashback offers.
  
  
• Blockchain Security Revolutionizes Trust: Companies adopt blockchain technology for transparent, traceable, and immutable gift card transactions, reducing fraud by creating unalterable records. Enhanced encryption protocols and non-sequential card numbers make digital gift cards 45% more secure against cyber threats and unauthorized access.
  
  
• Subscription and Experiential Gifting Gains Momentum: Leisure sector gift cards grew 15.5% in the first half of 2024, with 45% of millennials preferring experiential presents like restaurant gift cards. Subscription-based gifting services and multi-brand open-loop cards offer greater flexibility, driving market expansion.
  
  
• Mobile Wallet Integration Enhances Convenience: Digital gift cards integrate with Apple Pay, Google Wallet, and Venmo, simplifying purchases through NFC technology and instant delivery. Mobile payment platforms like PayPal enable seamless transactions, with 75% of millennials accepting e-gifting as their preferred method.

Growth Factors in the Digital Gift Card Market

• Rising Digital Payment Adoption: The shift toward contactless, convenient digital payments accelerates digital gift card usage, with digital payment transactions in India surging from 3,134 crores in FY 2018-19 to 5,554 crores in FY 2020-21. Approximately 82% of Americans utilized digital payments in 2021, fueling gift card popularity.
  
  
• E-Commerce Sector Expansion: The booming e-commerce industry provides multiple channels for digital gift card distribution, with online retail platforms offering instant delivery and personalized customization options. Noncash payments in the United States reached USD 128.51 trillion in 2021, supporting digital gift card utilization growth.
  
  
• Corporate Gifting and Incentive Programs: Businesses increasingly adopt gift cards for employee rewards, customer loyalty programs, and B2B incentives, with corporate adoption accounting for significant market share. Over 400 popular brands trust digital gifting platforms to power their corporate programs, expanding market opportunities.
  
  
• Technological Innovation and Personalization: Companies launch cryptocurrency-based gift cards, multi-brand digital solutions, and AI-powered customization features allowing personal messages, videos, and images. ONDC Network Gift Card powered by RuPay Network enhances digital commerce during festive seasons across buyer applications.
  
  
• Convenience and Flexibility Demand: Consumers seek hassle-free, instant gifting options that transcend geographical and time limitations, with 64% purchasing gift cards during holiday seasons. Digital gift cards offer 24/7 availability, immediate delivery via email or SMS, and customization possibilities that traditional cards cannot match.

We explore the factors propelling the digital gift card market growth, including technological advancements, consumer behaviors, and regulatory changes.

Leading Companies Operating in the Global Digital Gift Card Industry:

• Amazon.com Inc.
• American Express Company
• Apple Inc.
• Blackhawk Network Holdings Inc.
• First Data Corporation
• Fiserv Inc.
• Givex Corporation
• InComm Inc.
• Paytronix Systems, Inc.
• Qwikcilver Solutions Pvt Ltd (Pine Labs)

Digital Gift Card Market Report Segmentation:

Breakup By Card Type:

• Open Loop Card
• Closed Loop Card

Closed loop cards dominate the market due to strong retailer-specific programs and corporate gifting applications.

Breakup By Business Type:

• Retail (Festival Celebrations, Special Celebrations, Self-Use, Others)
• Corporate (Corporate Gift, Employee Prize, Incentive Program)

Retail segment accounts for the majority of shares driven by consumer gifting during festivals, birthdays, and special occasions.

Breakup By Application:

• Food and Beverage
• Health, Wellness and Beauty
• Apparel, Footwear and Accessories
• Books and Media Products
• Consumer Electronics
• Restaurants and Bars
• Kids Products
• Others

Food and beverage applications lead the market as consumers increasingly gift dining experiences and convenience.

Breakup By End User:

• Retail
• Corporate

Retail end users dominate due to widespread consumer adoption for personal gifting needs across diverse occasions.

Breakup By Region:

• North America (United States, Canada)
• Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
• Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
• Latin America (Brazil, Mexico, Others)
• Middle East and Africa

North America enjoys the leading position owing to high digital adoption, mature e-commerce infrastructure, and strong corporate incentive programs driving market growth.

Recent News and Developments in Digital Gift Card Market

• January 2024: Blackhawk Network announced the acquisition of B2B gift card firm Tango Card, enhancing its capabilities in providing scalable digital gift card solutions through API-driven technology and strengthening its market position.
  
  
• October 2023: Venmo partnered with InComm to offer digital gift cards, allowing users to send and receive gift cards for popular brands stored directly in the app, enhancing consumer convenience and accessibility.
  
  
• December 2023: Affirm entered a strategic partnership with Blackhawk Network, enabling users to purchase gift cards directly through the Affirm app, leveraging growing demand and expanding digital payment network reach.
  
  
• December 2024: Blackhawk Network introduced Roblox digital gift cards in Mexican Peso for seamless eCommerce, allowing users to purchase virtual currency and premium subscriptions with localized payment options.
  
  
• March 2024: United Airlines launched the MileagePlus Gift Card Exchange program, allowing customers to exchange unused gift cards from over 100 retailers including Starbucks and Target for airline miles.

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