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The global Digital Gift Cards market was valued at USD 328.26 Billion in 2022 and growing at a CAGR of 15.21% from 2023 to 2032. The market is expected to reach USD 1,352.45 Billion by 2032. This market is primarily growing based on moves concerning consumer buying behaviour. It has been observed that consumers are shifting from paper gift vouchers to digital ones. Wholesalers and retailers are noticing this trend as the opportunity for digital gift certificates has increased significantly in recent years. The main reason is the rapidly expanding mobile benefit of gift cards and other creative tools in e-commerce. These factors are helping to strengthen the digital gift cards’ appeal to consumers. The market is growing due to the growing e-commerce sector. Smartphones and new e-gift incentive policies by many companies are also fueling the market.
Gift cards are shifting towards digital and mobile gift cards. Their digital counterparts are replacing The usual physical cards as they offer more convenience and flexibility. Consumers can easily purchase and send the gift card digitally, and hence, there is no need for a physical card. It also enables the recipient to redeem it easily using mobile devices or smartphones. As the e-commerce sector and mobile technology grow, the demand for digital gift cards is growing. It provides flexibility, convenience and instant delivery. Hence, it is broadly preferred by both consumers and the business. Digital gift cards have changed how personal gifting and consumer rewards were given earlier. This has led to the growing use of digital gift cards among people, which are mobile-friendly and are not just limited to metros but also other cities. All businesses broadly follow the digital gifting trend, and this market is growing substantially. Employers or organizations broadly use digital gift cards as gifts or rewards. Marketers and retailers generally distribute consumer promotion strategies that persuade customers to return to the store. Digital gift cards are used to motivate the channel partners and sales teams in terms of incentives. Such a gift card campaign is a good way to engage and acquire customers, which helps create stronger relationships and increases awareness. Eventually, these cards can be boosted for referral programs, loyalty programs, giveaways and contests. All these factors are eventually driving the digital gift card market.
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The growing use of smartphones– The growing use of smartphones leads to the growing innovation of gift cards. The surge in the penetration of smartphones has offered customers convenient and flexible payment options, boosting the market. Advancements in technology and several marketing strategies have made many ways possible for users to buy digital gift cards as the industry shifts from plastic cards to digital cards. Virtual gift cards promote the brand's messages with online customers. People can buy and instant deliver digital gift cards to friends and family on special occasions. It helps the brand in getting higher visibility and more customers. These cards can be used as an effective marketing tool. These factors are eventually driving the Digital Gift Cards market.
Fraudulent Issue– Hackers could buy digital gift cards and resell them using stolen credit card numbers. Afterwards, when the customer does not receive the product, a refund is requested, which creates a friendly fraud scenario, and the seller should pay the chargebacks. As these cards do not need buyers to add personal details, it is easy for fraudsters to get away with scams. These factors act as hindrances to the market.
Growing e-commerce sector and personalization features– The growing use of e-commerce platforms has substantially grown the digital gift card market. Online retailers and marketplaces offer digital gift cards as a good alternative for the gift, thus appealing to more consumers who prefer digital gift delivery and online shopping. These digital gift cards also provide customization and personalization options, encouraging users to include images, videos and personalized messages. These facilities help lift the gifting experience and are preferred by consumers looking for a more tailored touch in gift choices. Moreover, these digital gift cards also help in the cross-border gifting trends, as with digital gift cards, one can send gifts to loved ones living in different countries. All these factors will eventually propel the digital gift card market in the forecasting period.
The regions analyzed for the market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. North America emerged as the largest market for the global Digital Gift Cards market, with a 41.34% share of the market revenue in 2022. This significant market share is due to a surge in the demand for gift cards on special occasions such as birthdays and Christmas. In the US, the gift card is considered the most common type of Christmas gift. Also, there is a growing e-commerce sector in the region, which is increasing the use of digital gift cards for many product offerings.
North America Region Digital Gift Cards Market Share in 2022 - 41.34%
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The card type segment is divided into open loop gift card and closed loop gift card. The closed loop gift card segment dominated the market, with a market share of around 64.34% in 2022. This significant share is due to the growing demand for the software as closed loop cards, which creates the opportunity to expand the market. It has several advantages, like scalability and one-time client acquisition cost. This card type is more useful when the recipient’s choices and preferences are known.
The business type segment is divided into business to business (B2B) and business to consumer (B2C). The business to consumer (B2C) segment dominated the market, with a market share of around 60.24% in 2022. This significant share is attributed to smooth incorporation, which improves the customer experience and thus increases the use of gift cards. These can be easily stored on mobile devices, and thus, they are easily accessible during online and in-store purchases. Also, many B2C organizations often develop digital gift card campaigns in peak shopping seasons like holidays, etc.
The application segment is divided into food and beverage, health, wellness and beauty, apparel, footwear and accessories, books and media products, consumer electronics, restaurants and bars, kids products and others. The consumer electronics segment dominated the market, with a market share of around 31.55% in 2022. This significant share is due to the easy accessibility of mobile e-commerce stores. There is also an expansion of digitalization in the e-commerce sector.
The end user segment is divided into retail and corporate. The retail segment dominated the market, with a market share of around 68.85% in 2022. This significant share is due to an increase in consumer shopping. Many shops offer distinct gift cards to satisfy the needs of several clients. There is growing use of closed-loop gift cards in the retail sector, which also contributes to the segment's significant share.
Report Description:
| Attribute | Description |
|---|---|
| Market Size | Revenue (USD Billion) |
| Market size value in 2022 | USD 328.26 Billion |
| Market size value in 2032 | USD 1,352.45 Billion |
| CAGR (2023 to 2032) | 15.21% |
| Historical data | 2019-2021 |
| Base Year | 2022 |
| Forecast | 2023-2032 |
| Region | The regions analyzed for the market are Asia Pacific, Europe, South America, North America, and Middle East & Africa. Furthermore, the regions are further analyzed at the country level. |
| Segments | Card Type, Business Type, Application and End User |
North America region emerged as the largest market for the Digital Gift Cards.
The market's growth will be influenced by the growing use of smartphones.
Fraudulent Issue could hamper the market growth.
Growing e-commerce sector and personalization features will provide huge opportunities to the market.
Key players are Givex Corporation, InComm Inc., Paytronix Systems, Inc, Apple Inc., First Data Corporation, Blackhawk Network Holdings Inc., American Express Company, Fiserv Inc., Amazon.com Inc and Qwikcilver Solutions Pvt Ltd (Pine Labs) among others.
This study forecasts revenue at global, regional, and country levels from 2019 to 2032. The Brainy Insights has segmented the global Digital Gift Cards market based on below mentioned segments:
Global Digital Gift Cards Market by Card Type:
Global Digital Gift Cards Market by Business Type:
Global Digital Gift Cards Market by Application:
Global Digital Gift Cards Market by End User:
Global Digital Gift Cards by Region:
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