Gift Card And Incentive Card Market Research Report By Card Type (Gift Cards, Incentive Cards, Loyalty Cards, Stored Value Cards), By Purpose (Personal Use, Business Use, Employee Incentives, Customer Loyalty Programs), By Distribution Channel (Physical (Brick-and-Mortar), Online (e-Commerce), Direct Sales, Loyalty Programs), By Payment Type (Open-Loop, Closed-Loop, Prepaid, Reloadable), By Application (Retail, Travel, Food and Beverage, Healthcare, Education) and By Regional (North America, Europe, South America, Asia Pacific, Middle East

Global Gift Card And Incentive Card Market Overview

Gift Card And Incentive Card Market Size was estimated at 215.35 (USD Billion) in 2022. The Gift Card And Incentive Card Industry is expected to grow from 232.56(USD Billion) in 2023 to 464.6 (USD Billion) by 2032. The Gift Card And Incentive Card Market CAGR (growth rate) is expected to be around 7.99% during the forecast period (2024 - 2032).

Source Primary Research, Secondary Research, MRFR Database and Analyst Review

Key Gift Card And Incentive Card Market Trends Highlighted

The gift card and incentive card market keeps on progressing with respect to time owing to technology and consumer preferences. The increasing popularity of digital gifting, the growing e-commerce industry and the rising application of loyalty programs are some of the primary market drivers.

Part of this market’s potential for development includes the enhancement of traditional gift card solutions, the combination with mobile payments, and the use of such cards to reward employees. Also, the increasing adoption of incentive cards for employee buy-in and reward systems offers considerable growth potential.

Moreover, the last progressive changes in the market include moving the focus towards custom-made appropriate gift card buying experiences, using advanced technology such as artificial intelligence and machine learning to customize and involve clients, and developing more socially and environmentally responsible products.

Gift Card And Incentive Card Market Drivers

Growing Popularity of Digital Payments

One of the key factors driving growth in the Gift Card And Incentive Card Market Industry is the increasing adoption of digital payments. Nowadays, more and more consumers are using digital wallets and mobile payment apps to make purchases, and this is a trend that is likely to continue in the future. As businesses are looking for ways to attract and retain customers, they are also increasingly providing gift cards and incentive cards. Besides that, the growing trend of e-commerce is also contributing to the demand for gift cards and incentive cards, as they can be easily purchased and used online.

Rising Demand for Personalized Rewards

Today’s consumers are increasingly looking for personalized rewards and experiences. Therefore, gift cards and incentive cards can be easily customized to meet the specific needs of every customer. Customization options make such forms of rewards even more attractive than traditional rewards programs. For example, businesses can customize gift cards that can be used only at specific retailers or restaurants or on specific products or services. Similarly, in the case of incentive cards, it is possible to customize rewards for certain behaviors, such as repeat purchases or referrals.

Growth of the Corporate Incentive Market

The corporate incentive market is one of the leading factors pushing growth in the Gift Card And Incentive Card Market Industry. Companies are more and more utilizing gift cards and incentive cards to honor their staff, appreciate their work and encourage efficiency. Gift cards can be used for anything and are thus a very flexible incentive alternative. Incentive cards, on the other hand, can be used to recompense and monitor the behavior of any specific group category, such as a sales team or a customer service team.

Gift Card And Incentive Card Market Segment Insights

Gift Card And Incentive Card Market Card Type Insights

The segment of Gift Cards is projected to hold the largest market share in 2023, representing about 45% of the overall market revenue. The prominence of this card type is associated with increasing purchasing behavior toward buying gift cards because it provides a convenient and flexible way for companies to do that. Moreover, there is a tendency for some gift card providers to stop selling physical cards to gain an opt for digital trading. The increasing amount of consumers’ money that goes to empty-nest configuration because they do not keep a few mementos at home also adds value to this customer group.The Incentive Cards segment has the potential to become the fastest-growing segment over the period because it would be increasingly used to reward employees and customers’ loyalty. It is projected to increase by a CAGR factor of 8.5%. Loyalty Cards would make up about 25% of overall market revenue in 2023. The growth of this segment is becoming increasingly relevant as more and more businesses opt to order loyalty cards so that customers can keep track of their purchases and develop rewards for their continuous business. Stored Value Cards would hold 10% of the market share in 2023, becoming another relevant element in a consumer’s wallet and used for small daily purchases.

Source Primary Research, Secondary Research, MRFR Database and Analyst Review

Gift Card And Incentive Card Market Purpose Insights

The Gift Card And Incentive Card Market by Purpose is segmented into Personal Use, Business Use, Employee Incentives, and Customer Loyalty Programs. The market for the Personal Use segment is expected to hold the largest share in 2023, and it is also expected to grow at a significant rate over the next five years. The growth is due to the increasing adoption of gift cards, as they have become a popular form of present and can be used easily and freely, creating no inconvenience of use. In addition, the Business Use market is also likely to grow, accompanied by the increasing implementation of gift cards as they use a lower cost to reward employees and customers.Meanwhile, the market for the Employee Incentives segment is anticipated to grow steadily because more organizations realize the utility of gift cards as incentives. The market for the Customer Loyalty Programs segment is projected to expand since more and more businesses handle gift cards in order to encourage customers to make more frequent purchases and form a tighter bond with their customers.

Gift Card And Incentive Card Market Distribution Channel Insights

Distribution channels play a crucial role in the Gift Card And Incentive Card Market, with each channel offering unique advantages and catering to specific customer preferences. Physical (brick-and-mortar) stores have a significant presence, accounting for a considerable share of Gift Card And Incentive Card Market revenue. These stores provide customers with a tangible shopping experience and allow them to examine products before making a purchase. Online (e-commerce) channels have witnessed substantial growth in recent years, driven by the convenience and wide selection they offer.E-commerce platforms enable customers to make purchases from the comfort of their homes and access a broader range of products compared to physical stores. Direct sales channels involve selling products directly to customers through company-owned stores or sales representatives. This channel offers personalized service and allows for direct interaction with customers. Loyalty programs are another important distribution channel where customers earn rewards or points for repeat purchases. These programs foster customer loyalty and encourage repeat business.

Gift Card And Incentive Card Market Payment Type Insights

The Gift Card And Incentive Card Market is segmented into Open-Loop, Closed-Loop, Prepaid, and Reloadable. Among these, the Open-Loop segment is expected to hold the largest market share during the forecast period. Open-loop cards are accepted by a wide range of merchants, making them more convenient for consumers. They are also more likely to be used for large purchases, as they can be used to pay for goods and services that are not typically covered by closed-loop cards. In 2023, the Gift Card And Incentive Card Market revenue for the Open-Loop segment is projected to reach $USD 123.4 billion, and it is expected to grow at a CAGR of 8.1% from 2024 to reach $USD 192.3 billion by 2032.

Gift Card And Incentive Card Market Application Insights

The application segment of the Gift Card And Incentive Card Market is diverse, with various industries utilizing these cards for different purposes. Retail In 2024, the retail sector is projected to account for the largest share of the market, at around 35%. Gift cards are widely used in retail stores as a convenient and flexible payment option, allowing customers to make purchases without carrying cash or credit cards. Travel The travel industry is another significant segment, with an estimated share of 22% in 2024. Gift cards are popular among travelers as they offer a secure and easy way to manage travel expenses, such as flights, accommodation, and tours.Food and Beverage The food and beverage industry is expected to hold a share of 18% in 2024. Gift cards are increasingly used in restaurants, cafes, and food delivery services, providing customers with a convenient way to pay for their meals and beverages. Healthcare The healthcare industry is projected to account for 15% of the market in 2024. Gift cards are used in hospitals, clinics, and pharmacies to facilitate payments for medical expenses, making healthcare more accessible and convenient for patients. Education The education sector is estimated to hold a share of 10% in 2024.Gift cards are utilized in schools, universities, and educational institutions to cover tuition fees, books, and other educational expenses, providing students with a flexible payment option. .

Gift Card And Incentive Card Market Regional Insights

The regional segmentation of the Gift Card And Incentive Card Market presents significant growth opportunities across key regions. North America is projected to maintain its dominance in the market, accounting for a major share of the revenue in 2024 and beyond. This growth is attributed to the presence of a large number of established players and a high adoption rate of gift cards and incentive cards in the region. Europe is another key market, with a strong presence of both physical and digital gift cards. The Asia-Pacific region is expected to witness the fastest growth during the forecast period, driven by the increasing popularity of e-commerce and the growing middle class in countries such as China and India.South America and the Middle East and Africa (MEA) are also expected to contribute to the overall growth of the market, albeit at a slower pace compared to other regions.

Source Primary Research, Secondary Research, MRFR Database and Analyst Review

Gift Card And Incentive Card Market Key Players And Competitive Insights

Major players in the gift card and incentive card market are continuously developing and innovating their products to meet the changing needs of consumers. Leading Gift Card And Incentive Card Market players are focusing on expanding their product portfolios and geographical reach to gain a competitive edge. The Gift Card And Incentive Card Market development is driven by the increasing adoption of digital payment methods and the growing popularity of incentive programs. The Gift Card And Incentive Card Market Competitive Landscape is fragmented, with several major players and a number of smaller regional and local players. Some of the key players in the Gift Card And Incentive Card Market include Blackhawk Network, InComm, and CashStar.Blackhawk Network is a leading provider of gift cards and prepaid products. The company offers a wide range of gift cards, including retail, restaurant, and entertainment gift cards. Blackhawk Network also provides a variety of prepaid products, such as reloadable cards, gift certificates, and travel cards. The company's products are sold through a variety of channels, including retail stores, online retailers, and financial institutions.InComm is another leading provider of gift cards and prepaid products. The company offers a wide range of gift cards, including retail, restaurant, and entertainment gift cards. InComm also provides a variety of prepaid products, such as reloadable cards, gift certificates, and travel cards. The company's products are sold through a variety of channels, including retail stores, online retailers, and financial institutions.

Key Companies in the Gift Card And Incentive Card Market Include

• Spendgo


• Emburse


• Billtrust


• First Data


• Visa Prepaid


• com


• Blackhawk Network


• InComm Payments


• Tango Card


• Wirecard North America


• Restaurant Technologies


• ACI Worldwide


• CashStar


• Simon Giftcard


• Stored Value Solutions

Gift Card And Incentive Card Market Industry Developments

The Gift Card and Incentive Card Market is projected to reach USD 464.6 billion by 2032, exhibiting a CAGR of 7.99% from 2024 to 2032. The market growth is attributed to factors such as rising consumer preference for digital payment methods, increasing adoption of incentive programs by businesses, and technological advancements in the payment industry.Recent developments include the launch of virtual gift cards and mobile wallets, which provide convenience and enhance the customer experience. Key players in the market are focusing on strategic partnerships and collaborations to expand their product offerings and geographic reach.The Asia-Pacific region is expected to witness significant growth due to the increasing adoption of digital payments and the presence of a large unbanked population. North America and Europe are mature markets, but still offer growth opportunities through innovation and the expansion of loyalty programs.

Gift Card And Incentive Card Market Segmentation Insights

• Gift Card And Incentive Card Market Card Type Outlook
  
  
  
  • Gift Cards
  
  
  • Incentive Cards
  
  
  • Loyalty Cards
  
  
  • Stored Value Cards
  
  
  
  


• Gift Card And Incentive Card Market Purpose Outlook
  
  
  
  • Personal Use
  
  
  • Business Use
  
  
  • Employee Incentives
  
  
  • Customer Loyalty Programs
  
  
  
  


• Gift Card And Incentive Card Market Distribution Channel Outlook
  
  
  
  • Physical (Brick-and-Mortar)
  
  
  • Online (e-Commerce)
  
  
  • Direct Sales
  
  
  • Loyalty Programs
  
  
  
  


• Gift Card And Incentive Card Market Payment Type Outlook
  
  
  
  • Open-Loop
  
  
  • Closed-Loop
  
  
  • Prepaid
  
  
  • Reloadable
  
  
  
  


• Gift Card And Incentive Card Market Application Outlook
  
  
  
  • Retail
  
  
  • Travel
  
  
  • Food and Beverage
  
  
  • Healthcare
  
  
  • Education
  
  
  
  


• Gift Card And Incentive Card Market Regional Outlook
  
  
  
  • North America
  
  
  • Europe
  
  
  • South America
  
  
  • Asia Pacific
  
  
  • Middle East and Africa