Gift Card Market Size & Share 2026-2035

Gift Card Market Size

The global gift card market was valued at USD 785 million in 2025. The market is expected to grow from USD 847 million in 2026 to USD 1.4 billion in 2031 & USD 3.1 billion in 2035, at a CAGR of 15.4% during the forecast period according to the latest report published by Global Market Insights Inc.

The growth of the market is attributed to the growth in digital payments, surging e-commerce penetration, rising demand for employee rewards & corporate incentives and expanding scope of cross border e-commerce & bolstering initiatives by regulatory bodies to ensure customer protection for prepaid & stored value goods. The growth of mobile payment and presence of various omnichannel retail formats and escalating prevalence for instant digital gifting among consumers & businesses have supported growth as well.

The market is significantly driven by the shift from cash to digital and the increase of digital payment and contactless. Countries and central governments across the globe are encouraging the adoption of digital secure payments and payment processors continue to bolster digital prepay offerings. For instance, the US CFPB remains committed to the ongoing enforcement and modernization of the consumer protections for prepaid accounts, covering disclosure, errors and fraud. These rulemakings provide greater assurance to prepaid users, enabling their increased adoption by consumers, consumers shopping at stores, businesses providing reward incentives to employees and consumers and improving clarity and consistency across the prepaid payments system.^{[1]US consumer financial protection bureau, consumerfinance.gov}

Additionally, companies are also utilizing these tools for promotions, employee rewards, and loyalty programs as they are expanding on a faster basis. Retail, tech, and financial sectors are rapidly adopting digital cards as they consider gift card reward programs to be extremely powerful with their staff. For instance, the reserve bank of Australia updated the payments system board as reforms to enhance Australia's payments infrastructure and efficiency to encourage the usage of digital payment instruments such as prepaid and gift cards and make for a safer and efficient Australian payments ecosystem for all merchants and consumers. Modernization of digital payments should further spur the uptake of the digital gift card to Australia's growing retail sector.^{[2]Reserve bank of Australia, rba.gov}

The gift card industry increased steadily, reaching USD 744.1 million in 2024, due to rapid growth in digital payment options, proliferating e-commerce transaction and consumer favorability toward flexible shopping methods. Furthermore, increased corporate spending on rewarding incentives for employees, customer loyalty schemes and promotional offer programs have a substantial role in the gift cards sales market rise during this period. Some additional parameters such as growing mobile wallet integration with payment systems, spread of online gifting voucher at e-Commerce platforms and the supportive government endeavors for non-cash payments further enhanced the gifting cash circulation among advanced and newly formed nations.

Gift Card Market Trends

• Digital wallets and app wallets, contactless payments, and in-person purchases at point of sale (POS) is shifting the world of gifting. Since roughly 2020, this has seen a ramp-up as consumers look to get immediate digital delivery of contactless gift cards to gift in a virtual or physical setting. By 2035 it is anticipate the adoption of digital payment Wallets such as apple wallet, google wallet to take over. This will increase ease of use, create ease of redemption, and transition all physical gift cards to their digital counterparts.
• The rise in corporate rewards, employee recognition and customer loyalty programs is becoming the key trend to growth in corporate gifting across different industries and grew significantly starting approximately 2021 when brands started utilizing more digital awards and benefits for employee retention, customer acquisition & retention and sales promotions. This trend would only be going to continue in the upcoming years until 2034, since brands will more & more opt for personalized rewards programs that would increase the subscription/ recurring based purchase volume of gift cards in both B2B and B2C verticals.
• The current rise in gift cards used across e-commerce and in physical omnichannel retailers is influencing purchase behaviors and is projected to grow to more than triple 2020 revenues by 2035, when seamless online gifting, click and collect and redeem anywhere behavior matures. This growth can lead to improved levels of customer engagement, more impactful loyalty programs and greater volumes of gift card transactions.
• As companies continue to adopt AI for personalization, personalized tipping and to power new fraud preventions, businesses that provide and use gift cards will get smarter and more secure about the programs starting in 2022 and on through 2035 as retailer and payment platforms deploy AI to personalize gift offers in addition to predicting when fraudulent payments will occur online. The adoption of the technology could eliminate nearly USD 200 billion in gift card fraud over the next 10 years and improve consumer trust in the security of cross-border gift payments.

Gift Card Market Analysis

Based on card type, the gift card market is divided into closed-loop gift cards and open-loop gift cards.

• The closed-loop gift cards components segment led the market in 2025, holding a 69.1% share, due to its popularity among various retail stores, restaurants, entertainments facilities, online retail stores and e-commerce platforms for the purchase of brand specific product. Closed-loop gift cards are beneficial in a way of improving customers loyalty, customer repeat purchase and reducing acquisition cost of customers and boosting omnichannel marketing approaches.
• The open-loop gift cards segment is anticipated to grow at a CAGR of 17.9% over the forecast period. The high growth of the segment is primarily attributed to growing consumer acceptance of convenient payment solutions, increasing spread of digital payments infrastructure and rapidly rising acceptance of visa, mastercard and other network-branded prepaid cards.

Based on card format, the gift card market is divided into physical gift cards and digital / e-gift cards.

• The physical gift cards segment dominated the market in 2025 and was valued at USD 440.6 million, due to factors such as popularity for point-of-sale (POS), holiday sales, retail promotions and corporate incentives. As physical gift cards can be bought from various channels like supermarkets, hypermarkets, convenience shops and retail outlets, more consumers are still likely to opt for gift cards as a tangible form of expressing.
• The digital / e-gift cards segment is expected to witness growth at a CAGR of 19.2% during the forecast period. These products have started becoming popular in the market due to increase in smartphone sales, rise in e-commerce platforms, spread in usage of mobile wallet applications and an increment in gifting habits in this modern society. Digital gift cards feature instant distribution and delivery, online purchase with ease and multiple online redemption methods, all of which have reduced marketing expenses when compared to selling physical gift cards.

Based on end-use / consumer type, the gift card market is divided into B2C-personal / consumer gifting and B2B-corporate incentives & employee rewards.

• The B2C-personal/consumer gifting segment dominated the market in 2025 and was valued at USD 596.9 million. Increased acceptance of gift cards on various occasions such as birthdays, festivals, holidays, weddings etc., and convenient options coupled with personalization offer consumers, especially individuals across age groups, a preferable gifting solution. An escalating global retailer and e-commerce penetration rate, along with digital gifting options, further fueled expansion of this segment.
• The B2B-corporate incentives & employee rewards segment is expected to witness growth at a CAGR of 18.6% during the forecast period. Companies are implementing gift cards on an extensive basis across sales incentives and rewards programs, the employee performance enhancement, customer loyalty initiatives, and sales promotional activities, to increase engagement. Growing proliferation of online payment schemes in business organizations further facilitates ease of distribution. Corporate gift cards provide employees and consumers with tangible solutions through digital distribution which encourages higher performance.

North America Gift Card Market

North America held a share of 46.4% of the market in 2025.

• In North America, the market is experiencing growth because of wide adoption of digital payment solutions, increased consumer spending and mature e-commerce infrastructure. The region experiences high penetration of open-loop and closed-loop gift cards, increasing adoption of digital wallets and rising purchase of gift cards among retail outlets, entertainment and food, hospitality industries, and online retail markets.
• Several US and Canadian organizations increasingly rely on gift cards as part of employee appreciation programs, customer loyalty incentives and marketing efforts. Consistent innovation by payment providers, growth of omnichannel retailing and a trend towards digital gift card adoption are anticipated to establish North America as the innovation and adoption leader in the market through 2035.

The U.S. gift card market size reached USD 311.9 million in 2025, growing from USD 299.5 million in 2024.

• The US market rise is large part to the growing consumers’ preference for e-gifting, surge in online retail sales as well as the increased circulation of prepaid payment products. Leading e-commerce retailers, technology and payment companies are increasingly investing in growing digital gift card solutions which are closely incorporated with various payment solutions, mobile wallets and in-application shopping options which are both suitable and engaging to the customers.
• For instance, the federal reserve unveiled a new update to federal reserve payments study (FRPS), providing further information on increases in non-US payments within US payment flows and also updated statistics on the use of prepaid debit cards. The growing ecosystem of digital and prepaid solutions is fueling growth for open-loop gift cards and digitally delivered gift options among retailers and e-commerce providers.^{[3]US federal reserve, federalreserve.gov}

Europe Gift Card Market

Europe market accounted for USD 171.5 million in 2025 and is anticipated to show lucrative growth over the forecast period.

• Europe's market is expanding rapidly because of the rapid rise in digital payments, growing e-commerce penetration, and increasing consumers preference for digital gifting solutions. Supported by excellent retail infrastructure and a wide acceptance of prepaid payment products, retailers and customers are moving towards adopting gift cards in their lives across fashion, groceries, travel, entertainment, and online retail.

• Besides, the presence of EU digital finance strategy, rise of the PSD2 regulations and the constant push for a secure digital payment infrastructure would facilitate the usage of digital gift cards at a quicker pace in Europe. Supported by the growth of corporate incentive and customer loyalty schemes as well as growth in cross-border digital trading, the market for gift cards in Europe is predicted to exhibit significant steady growth in the years to come.

Germany dominates the Europe gift card market, showcasing strong growth potential.

• The German market holds the leadership in the European market and is anticipated to continue its dominance over the course of years owing to significant contribution from strong retail segment, higher adoption rate of digital payment systems and the developed e-commerce segment of the economy. The penetration of gift cards for employee incentives, customer reward programs and even as holiday shopping option, is further driven with the rapid use of prepaid payment methods in physical and digital retail segments.
• For instance, German federal ministry of the interior was working on rolling out a number of new online public services based on the online access act, digital identity, electronic services or online transactions on a broad scale. Online access law has contributed significantly for mass adoption of e-money as payment instrument and digital commerce ecosystem can have new advantages for growth of digital gift card or prepaid payment products.^{[4]German federal ministry of interior, bund.de}

Asia Pacific Gift Card Market

The Asia Pacific market is anticipated to grow at the highest CAGR of 19.3% during the forecast period.

• Rising penetration of smartphones, growing presence of digital payment networks, and rapid development of e-commerce are driving the Asia Pacific market across countries like China, India, Japan, South Korea and Southeast Asia. Increasing preference for digital payments and growing demand for cashless transactions have encouraged customers to opt for digital and physical gift cards.

• Increased spending power, increasing mobile wallets, and QR code payments are expected to add boost to the market. Furthermore, government supported digitization plans, large fintech industry in countries of Asia Pacific and investments in retail sector digitalization are projected to support the growth of regional market over the forecast time.

India gift card market is estimated to grow with a significant CAGR, in the Asia Pacific market.

• India presents the fastest-growing digital gift card industry globally, the nation has witnessed rapid expansion in the areas of online commerce, the adoption of UPI payment systems and increasing demand for the concept of digital gifting among the consumers. Gift cards can be used effectively for occasions including festivals, as corporate incentives and gifting strategies for employees, and employee retention policies to reward loyal workers of an organization. These all factors together have provided a positive boost to demand within the nation for the product.
• For instance, the department for promotion of industry and internal trade, continued expanding the open network for digital commerce (ONDC) to create an interoperable digital commerce ecosystem for retailers, brands, and consumers. ONDC enables innovative digital commerce solutions, including interoperable digital gift cards and prepaid payment products, supporting wider merchant participation and accelerating the adoption of digital gifting across India.^{[5]DPIIT, pib.gov}

Middle East and Africa Gift Card Market

Saudi Arabia market to experience substantial growth in the Middle East and Africa.

• The market in Saudi Arabia is currently developing strongly with e- commerce growth and increasing penetration, rapid increase of digital payment and government smart transformation initiatives as part of Saudi Vision 2030. The market is driven by growing popularity of the use of mobile wallet, online payments and cashless transaction modes of purchasing and a preference or gift vouchers among Saudi consumers in the food and restaurant sector, retailers of electronics and accessories, in apparels and clothing sectors and in the hospitality and tourism industries, as well as these retailers’ selling books and educational services providers.
• Also, the adoption of the gift card by business units for consumer payment services is fueled by Saudi initiatives promoting the growth of financial-tech industries in the kingdom and the extension of online finance system and smart retail infrastructure investments to aid this growth. The digital gift cards are now integrating with mobile payment system and is project to add another momentum to market growth.

Gift Card Market Share

The market is led by players such as Amazon, Apple, Visa, Mastercard and Walmart These five companies cumulatively accounted for 20% market share in 2025. In the gift card industry, leading players maintain considerable command through broad retail network, international payment systems, digital retailing abilities and massive customer network in both physical and digital gift card space. Their varied range of services, omnichannel presence in the sector of gift card services and brands recognized by individuals, businesses and merchants internationally allows them to dominate over individual and business gift cards, regardless of their geographical presence.

Continuous innovation in the physical & digital payment technologies, mobile wallet services, AI enabled fraud deterrent services, user personalize gifting systems of payment leaders secures a competitive edge for those. Furthermore, expansion of affiliations with merchants, financial entities and online merchants worldwide and increasing investment in the business programs, trans-border digital payment and seamless omnichannel fulfillment and redemption services are key attributes helping them in conquering the global demand for physical & digital gift cards.

Gift Card Market Companies

Prominent players operating in the gift card industry are as mentioned below:

• Amazon
• American Express
• Apple
• Best Buy
• Carrefour
• H&M Group
• JD.com
• Mastercard
• Sephora (LVMH)
• Starbucks
• Target
• Tesco
• Visa
• Walmart

• Amazon

Amazon has built one of the world's largest digital gift card economies and sells physical and digital gift cards in numerous categories, provides immediate digital gift card delivery, numerous brand partners, and seamlessly fits into the Amazon ecosystem, building engagement.

• Apple

It has digitally delivered gift cards through Apple gift cards that can be used in conjunction with the entire Apple ecosystem. The app store, iCloud, apple music, and even devices with their robust payment ecosystem, loyalty programs, and the option to add cards to an apple wallet card that encourage usage across a range of platforms.

• Visa

Visa gift cards open loop, can be redeemed at millions of merchant locations around the world, offer universal access to our vast payment network, enhanced security features and long-term relationships with issuing financial institutions. Visa gift cards are a popular choice for consumers and a well-regarded business gifting solution.

• Mastercard

Mastercard gift card products, both digital and physical, are powered through global payments network. In addition, to their inherent flexibility, Mastercard offering provides customers with security at every touchpoint-from robust card processing and tokenization technology to a full-service card processing platform that includes state-of-the-art fraud prevention services.

• Walmart

Walmart's immense retail store footprint combined with a robust and rapidly expanding e-commerce operation provide a vast digital catalog to complement its physical gifted card offering. Across all the channels in its holistic retail footprint with its expansive delivery footprint within the U.S.

Gift Card Industry News

• In July 2026, Amazon expanded its amazon business gift card capabilities to support enterprise rewards and employee recognition programs, making it easier for businesses to purchase and distribute digital gift cards at scale. The enhancement strengthens amazon's position in the corporate gifting and incentive market while supporting digital-first reward strategies.
• In June 2026, Apple continued expanding its apple business gift card program, enabling organizations to purchase apple gift cards in bulk for employee incentives, customer rewards, and business gifting. The program supports both physical and digital formats across eligible markets, reinforcing apple's enterprise gifting ecosystem.

The gift card market research report includes in-depth coverage of the industry with estimates and forecast in terms of revenue (USD Million) from 2022 – 2035 for the following segments:

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Market, By Card Type

• Closed-loop gift cards
• Open-loop gift cards

Market, By Card Format

• Physical gift cards
• Digital / e-gift cards

Market, By End-Use / Consumer Type

• B2C - personal/consumer gifting
  • Seasonal & holiday gifting
  • Occasion-based gifting
  • Others
• B2B - corporate incentives & employee rewards
  • Employee rewards & recognition
  • Customer loyalty & promotional gifting
  • Corporate client & partner gifting
  • Others

Market, By Distribution Channel

• Online
  • Brand-owned websites & mobile applications    
  • E-commerce marketplaces & digital aggregator platforms
  • Corporate gifting platforms & b2b online portals
  • Others
• Offline
  • Brand outlets & in-store point-of-sale    
  • Supermarket rack programs & convenience store networks 
  • Corporate sales & field-based b2b distribution
  • Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea

• Latin America
  • Brazil
  • Mexico
  • Argentina

• Middle East and Africa
  • South Africa
  • Saudi Arabia
  • UAE