Gift Card Market Size, Share, Trends, and Growth Forecast, 2025 - 2032

Gift Card Market Size and Trends Analysis

The global gift card market size is likely to value US$712.5 billion in 2025 and reach US$1,906.2 billion by 2032, growing at a CAGR of 15.1% during the forecast period from 2025 to 2032. Market growth is driven by rising demand for convenient, secure, and personalized gifting options. As consumers increasingly shift toward digital and mobile-based payment solutions, gift cards have become a preferred choice for both personal and corporate gifting. The integration of gift cards with loyalty and reward programs, along with the expanding e-commerce and online retail sector, is further fueling market expansion. Businesses are also leveraging gift cards as effective tools to enhance customer engagement, retention, and brand loyalty.

Key Industry Highlights:

• Leading Merchant Type: Department stores dominate with over 23% share in 2025, leveraging diverse offerings for flexible gifting, while coffee shops show the highest growth rate due to everyday convenience, social habits, and mobile ordering adoption.
• Leading Card Type: Physical gift cards hold more than 54% share in 2025, fulfilling emotional and tangible gifting needs, whereas e-gifting is the fastest-growing segment due to convenience, instant delivery, and mobile wallet integration.
• Leading Price Range: Low-value cards (below US$200) account for over 60% share, supporting frequent purchases, accessibility, and casual gifting. Medium-value cards (US$200–400) show significant growth due to perceived value and corporate gifting adoption.
• Leading Sales Channel: Offline channels retain over 55% share in 2025 for instant availability and personal assistance, while online channels grow fastest due to convenience, instant delivery, and digital wallet integration.
• Leading End-user: Individuals account for over 64% market share, driven by convenience and flexibility, whereas businesses show strong growth through corporate gifting, loyalty programs, and employee incentives.
• Leading Region: North America captures over 37% share, driven by advanced digital infrastructure, mobile payment adoption, and AI personalization. Asia Pacific is poised to achieve a CAGR of 18.6% due to smartphone penetration, UPI adoption, government digital initiatives, and rising disposable incomes.
• Leading Driver: Mobile-friendly gift cards are gaining prominence due to instant accessibility, shareability, and engagement, with Gen Z and Millennials increasing usage by nearly 50% year-over-year. Capital One reports that consumers spend an average of $31.75 above card value, boosting profitability and incremental revenue.

Key Insights	Details
Gift Card Market Size (2025E)	US$712.5 Bn
Market Value Forecast (2032F)	US$1,906.2 Bn
Projected Growth (CAGR 2025 to 2032)	15.1%
Historical Market Growth (CAGR 2019 to 2024)	12.9%

Market Dynamics

Driver - Optimizing Mobile Gift Cards for Instant Consumer Engagement

Mobile devices have transformed consumer-brand interactions, creating demand for fast, convenient, and personalized experiences, making mobile-friendly gift cards essential. Traditional gift cards fall short for mobile-first buyers seeking instantly accessible and shareable options, while mobile-friendly cards drive engagement and revenue through peer-to-peer influence. Gen Z and Millennials increasingly prefer digital gift cards, reshaping gifting habits, with 50% of Gen Z and 49% of Millennials increasing their usage over the past year, according to a survey conducted by Bankrate. Capital One reports that 61% of consumers spend more than the card’s value when redeeming, adding an average of $31.75 per transaction, boosting overall profitability. Mobile gift cards offer seamless usability, higher redemption rates, and increased incremental spending.

Digital Payment Adoption and Regulatory Support Driving Gift Card Demand

The rapid adoption of mobile wallets, UPI, and contactless payments is driving consumer preference for digital or e-gift cards over physical cards, particularly among Millennials and Gen Z. Online platforms enable instant delivery, secure redemption, and integration with apps and loyalty programs, enhancing engagement and repeat purchases. Cross-border digital payments, such as UPI adoption in France, are boosting Indian tourist spending by 40%, expanding market reach.

Government initiatives and regulatory support, including India’s Digital India, the ONDC framework (with YES BANK issuing the first ONDC Network Gift Cards), and European digital payment regulations, promote cashless economies, innovation, and enhanced fraud protection, further accelerating demand. Integration with Apple Wallet, Google Pay, and other digital wallets improves visibility and frequent use.

Restraint - Security Threats and Fraud-Related Concerns

Criminals exploit the high anonymity and easy transferability of gift cards through schemes like "gift card tampering," where stolen cards are altered and resold internationally. Multi-step operations involving takers, tampering experts, placers, and acquirers target high-value goods, undermining consumer confidence. Weak regulations and security gaps in many jurisdictions further increase vulnerability. According to the FTC, over 41,000 reports of gift card fraud led to $212 million in losses in 2024, while Americans lost more than $228 million in 2023, with actual figures likely higher due to underreporting.

Regulatory Compliance and Legal Complexities

The fragmented regulatory landscape creates significant challenges for the gift card market. Inconsistent state laws and legal gray areas complicate the prosecution of gift card fraud, with only sixteen jurisdictions currently advancing prosecutorial legislation. Varying rules on expiry dates, fees, and KYC requirements create operational complexities for global operators. Stringent consumer protection laws in Europe further increase compliance burdens, while emerging markets often lack comprehensive regulatory frameworks, limiting market development potential.

Opportunity - Seamless Cross-Platform and Omnichannel Experiences

The growing demand for seamless omnichannel gift card experiences across stores, websites, apps, and social platforms presents significant market opportunities. According to a study, 53% of online-purchased gift cards are redeemed in-store, while 22% of in-store cards are used online, highlighting the need for integrated systems bridging e-commerce and physical retail. Emerging technologies such as AR/VR for immersive gifting, AI-driven personalization for targeted recommendations, smart contracts, and IoT-enabled redemption enhance customer engagement and enable premium pricing. Companies such as Blackhawk Network leverage AI to boost satisfaction and conversion rates, demonstrating the potential of tech-enabled gift card solutions.

Integration of Gift Cards with Loyalty Programs and POS Systems

Combining gift cards with loyalty programs enhances customer retention and engagement by allowing loyalty points to be instantly redeemed as gift cards, encouraging repeat purchases and long-term brand loyalty. For example, Factor4’s partnership with Realtime POS enables retailers to seamlessly manage gift card and loyalty programs directly through POS systems, improving operations and sales. Instant reward recognition is crucial, as 75% of consumers prefer immediate benefits, and 68% are more likely to revisit stores with real-time loyalty updates. Retailers integrating POS-based loyalty software report up to a 20% increase in repeat visits, according to Novus Loyalty Limited.

Category-wise Analysis

By Merchant, Department Stores Leveraging Diverse Offerings for Flexible Gifting

Department stores are expected to account for more than 23% in 2025, capitalizing on their diverse product offerings and established customer relationships. These retailers benefit from high-traffic locations and comprehensive product categories that appeal to broad consumer demographics. Their strength lies in offering universal gifting solutions suitable for various occasions, providing recipients with the convenience and flexibility to select products they truly want.

Coffee shops are expected to grow rapidly due to their popularity and urban lifestyle. Consumers prefer gifting coffee cards because they allow recipients flexibility to choose their favorite beverages or snacks. This is driven by the increasing use of digital wallets and mobile ordering, making coffee shop gift cards quick, easy, and accessible. The social and habitual nature of coffee consumption ensures repeated engagement, further boosting demand.

By Card Type, Physical Gift Cards Enhance Personal Touch and Brand Presence

Physical gift cards are expected to account for over 54% share in 2025 as they cater to the emotional and tangible aspects of gifting, fulfilling consumers’ need for a personal touch. Many buyers prefer a physical card for occasions like birthdays, holidays, and corporate rewards, where presentation matters. They also serve as convenient tools for recipients who may not be tech-savvy or prefer in-store redemption. Physical cards often reinforce brand presence, acting as a visible reminder of the issuing retailer or service.

E-gifting is expected to grow at the highest rate due to the increasing need for convenience and instant delivery. Consumers prefer digital gift cards as they save time, can be sent anytime and anywhere, and offer flexibility for recipients to choose their preferred products or services. This growth is further driven by the rising adoption of mobile wallets, online shopping, and contactless payment methods. The ease of personalization and last-minute gifting also make e-gifting highly attractive.

By Price Range, Low-Value (Below US$ 200) Gift Cards Driving Accessibility and Frequent Consumer Engagement

Low (Below US$ 200) is expected to account for more than 60% share in 2025 due to their alignment with everyday consumer needs and budgets. These cards are ideal for small celebrations, personal gestures, and corporate incentives, making them highly accessible. They offer flexibility for recipients to choose products without imposing high spending, catering to casual gifting occasions. Their affordability encourages frequent purchases, driving repeated market transactions and sustaining demand.

Medium (US$ 200-400) products are expected to grow at a significant rate due to their balance of accessibility and perceived value. They offer flexible and thoughtful gifting without being overly costly. The rise of digital wallets and online platforms makes these cards convenient and encourages repeated use. This segment appeals to both corporate buyers seeking meaningful employee rewards and consumers purchasing gifts for special occasions, driving sustained growth.

By Sales Channel, Offline Driving Convenience, Instant Availability, and Personalized Assistance

Offline is expected to account for over 55% share in 2025, as they meet consumers’ needs for convenience, immediate availability, and personal assistance. Many customers prefer purchasing gift cards in-store, where they can consult staff, choose designs, and receive instant activation. Offline channels also cater to regions with limited digital penetration or where consumers are less comfortable with online transactions. The tactile, hands-on experience and trust in in-person purchases reinforce offline dominance.

Online channels are expected to grow at the highest rate due to their convenience and instant accessibility, fulfilling consumers’ need for quick and flexible gifting solutions. Digital wallets and e-commerce platforms simplify purchasing and delivery, allowing recipients to redeem cards immediately. The integration of gift cards into major e-commerce platforms, along with the development of specialized gift card marketplaces, further drives growth in the online channel.

By End-user, Individuals Driving Growth Through Convenient and Flexible Gifting Solutions

Individuals are expected to account for over 64% of the market share in 2025 due to their growing preference for convenient and flexible gifting options that save time and effort. They favor personal celebrations, birthdays, and holidays, where gift cards allow recipients the freedom to choose what they truly want. This trend is driven by the increasing use of e-commerce and digital wallets, making gift cards an easy and accessible solution for individuals.

Businesses are expected to grow at a significant rate due to the increasing need for efficient employee recognition, incentives, and corporate gifting solutions. Gift cards offer flexibility, allowing recipients to choose rewards that suit their preferences, thereby enhancing satisfaction and engagement. Companies are leveraging gift cards for customer loyalty programs and B2B relationship management, while also meeting the demand for convenient and personalized rewards.

Regional Insights

North America Gift Card Market Trends

North America is projected to capture over 37% of the gift card market, accounting for more than US$264 bn by 2025, driven by advanced technological infrastructure and innovations like blockchain-enabled cards that enhance security. Over 80% of Americans use digital payments, with gift cards playing a major role, especially in corporate rewards and customer loyalty programs. Growth is fueled by mobile payment integration, omnichannel retail, and AI-powered personalization, supported by robust regulations. CivicScience reports that 55% of U.S. adults received a gift card during the 2024 holidays, with Gen Z and Millennials leading recipients, and 71% of consumers holding cards for at least a year, highlighting convenience and incremental spending. The U.S. Gift Card market is projected to exceed US$520 bn by 2032.

Asia Pacific Gift Card Market Trends

Asia Pacific gift card market is expected to achieve a CAGR of 18.6%, driven by rising internet and smartphone penetration, mobile payment platforms such as Alipay, Paytm, and India’s UPI, which processes 20 billion transactions monthly as of August 2025. Government-led digital initiatives, increasing disposable incomes, and a growing middle class are boosting demand for flexible, personalized gifting solutions. Integration of gift cards into e-commerce and super-app ecosystems, along with cost-effective regional manufacturing and supply chain advantages, further support expansion. Millennials and Gen Z favor the convenience and customization offered by gift cards, making them a preferred choice across occasions. The region’s FinTech investment of 52.2 billion dollars, accounting for 25% of global investment, underscores its pivotal role in shaping future market dynamics.

Europe Gift Card Market Trends

Europe demonstrates steady growth supported by stringent consumer protection laws and sustainable options. Retailers are replacing PVC/plastic cards with 100% recyclable, compostable paperboard alternatives, such as UK-based Green Gift Cards, used by EE BAFTAs and hospitality chains. Digital adoption is promoted by Apple and Google, offering instant redemption and fraud protection. Employee gift cards are tax-free up to €196 in France and €1,500 in Ireland, while partnerships between financial institutions and retailers, plus neobanks like Revolut and N26, expand prepaid and reloadable digital card offerings for employees and gig workers.

Competitive Landscape

The global gift card market is highly fragmented, with regional and international players competing across physical and digital formats. Manufacturers are pursuing partnerships with retailers, e-commerce platforms, and fintech firms to expand reach, while investing in AI-based personalization, secure digital delivery, and blockchain fraud prevention. White-label solutions and API integrations are driving seamless brand customization and corporate gifting.

Key Industry Developments:

• In June 2025, Giftbit introduced new features to enhance its digital payouts and gift card platform, including a one-click add-to-wallet option for prepaid Visa cards and an upgraded reporting dashboard. The updates streamline reward management and expand Giftbit’s global gift card catalog, offering businesses greater control and convenience in their reward programs.
• In May 2025, Fundstream Inc. launched the third version of its fulfillment services platform. Originally introduced in 2016, the upgraded platform offers enhanced speed, automation, white-label options, and maintains SOC 2 Type 2 compliance for secure, end-to-end gift card fulfillment.
• In April 2025, Blackhawk Network (BHN) partnered with Monadnock Paper Mills to launch Renovo, a sustainable, fiber-based gift card substrate that replaces PVC with a durable, 100% post-consumer recycled, carbon-neutral, and recyclable alternative.
• In October 2024, Klarna partnered with Blackhawk Network (BHN) to launch its Gift Card Store in the UK, allowing shoppers to purchase gift cards from top brands like Airbnb, IKEA, adidas, and Uber using Klarna’s Buy Now, Pay Later or Pay Now options.

Companies Covered in Gift Card Market

• Amazon.com, Inc.
• Best Buy Company, Inc.
• Starbucks Corporation
• Walmart Inc.
• Target Corporation
• The Home Depot, Inc.
• Blackhawk Network
• Pine Labs Pvt.
• Visa Inc.
• American Express Company
• Mastercard Incorporated
• PayPal Holdings, Inc.
• Gyft
• Others