Gift Card Market By Functional Attribute (Open Loop and Closed Loop), By Industry Vertical (Retail and Corporate Institutions), Industry Trends, Estimation & Forecast, 2023-2030

Market Overview

Gift cards are also known as gift certificates or gift tokens. These are prepaid payment cards that hold a certain amount of money and can be used by anyone for purchase. In recent times, corporate companies prefer gift cards as incentives, rather than giving traditional bonuses in the form of cash. Gift cards have thereby emerged as an effective way to increase performance and involve employees.

Market Dynamics

The growth in demand for prepaid cards, increased product demand from merchants and retailers, and the development of e-commerce gift card offerings are the primary factors driving the market growth. The rising consumer interest towards the purchase of prepaid cards and payment solutions has proved to be an influential factor that is projected to propel the demand for gift card solutions both through retail stores and online channels. The offering of gift card solutions to customers ensures that a merchant or seller retains its market recognition among other consumers who come to redeem their gift cards, also guaranteeing a medium of advertising unique in its distribution medium. The rise in the advent of online gift card solutions has also had a positive impact on the dynamics of the market, with the majority of the tech-savvy consumers inclined and attracted to the convenience of e-commerce gift card programs. However, the lack of security measures might hamper market growth.
The cards have little means of security against misuse by unintended persons or methods of retrieval in cases of theft. The consumers do not have the facility to fall back to technology or failsafe procedures in case of misplacement of cards. The physical safekeeping is thereby the only critical method of security, sometimes presenting undue issues of attentive storage of cards. The growth in product adoption in the corporate sector would provide lucrative opportunities for the market in the coming years. As the gift card industry continues to play a vital role in both business-to-consumer and business-to-business markets, the adoption of gift cards is continuously increasing in corporate institutions for employee incentive programs. Such initiatives would provide new possibilities for business expansion to crucial vendors.

Market Segmentation

The global Gift Card market is mainly classified based on Functional Attribute and Industry Vertical. Functional Attribute is segmented into Open Loop and Closed Loop. By Industry Vertical, the market is divided into Retail and Corporate Institutions.

Closed Loop gift cards by Functional Attribute is a prominent category and lead by overall market share. The closed-loop gift cards can be used only at one store or with one corporate brand; it ensures that the recipients of the gift card will return to the business to use it, which is profitable to the companies. The retail brands thereby prefer closed-loop cards, which would further influence the segment growth over the forecast period.

In terms of Industry Vertical, the Retail segment holds considerable share as more retailers use gift cards to increase sales. The continuous addition of innovative and attractive gift cards by retailers, which include three-dimensional, reloadable, voice recordable, and online-redeemable gift cards, would further boost the segment growth.

Regional Analysis

Based on geography, the global Gift Card market is divided into North America, Europe, Asia-Pacific, South America, and Middle East & Africa. North America is further divided in the U.S., Canada, and Mexico, whereas Europe consists of the UK, Germany, France, Italy, Russia, and Rest of Europe. Asia-Pacific is segmented into India, China, Japan, South Korea, and Rest of Asia-Pacific. The South America region includes Brazil, Argentina, and the Rest of South America, while the Middle East & Africa is categorized into GCC Countries, Egypt, South Africa, and Rest of Middle East & Africa.

North America is a lucrative market with significant growth prospects for potential companies looking to expand business activities and strengthen regional market position through an increase in the sale volume of gift cards. The establishment and market presence of retail companies offering innovative gift card solutions to its consumers and the massive popularity of gift cards among the consumers in the region are the primary factors that are poised to propel the growth of the regional market during the forecast period.
 
Competitive landscape

The Gift Card market is relatively fragmented, with the presence of several companies with the expanded product portfolio and diversified global reach looking to strengthen the business position.

Key players operating in the Gift Card industry include Blackhawk Network Holdings, Inc., Documax Inc., Duracard Plastic Card Printing Company, First Data Corporation, National Gift Card Corp., Plastek Card Solutions, Inc., Qwikcilver Solutions Pvt. Ltd., TenderCorp, LLC, TransGate Solutions, and Worldpay, Inc.

The focus of companies on the launch of new product solutions has been at the foremost of business strategies that have been adopted on a worldwide basis, coupled with mergers & acquisitions to combine financial resources and technical capabilities.

Gift Card Market Key Segments

By Functional Attribute
• Open Loop
• Closed Loop

By Industry Vertical
• Retail
• Corporate Institutions

Key Global Gift Card Industry Players
• Blackhawk Network Holdings, Inc.
• Documax Inc.
• Duracard Plastic Card Printing Company
• First Data Corporation
• National Gift Card Corp.
• Plastek Card Solutions, Inc.
• Qwikcilver Solutions Pvt. Ltd.
• TenderCorp, LLC
• TransGate Solutions
• Worldpay, Inc.

Table of Content

1. Market Introduction
1.1. Executive Summary
1.2. Market Definition
1.3. Market Scope

2. Research Methodology
2.1. Primary Research
2.2. Research Methodology
2.3. Assumptions & Exclusions
2.4. Secondary data sources

3. Gift Card Market Overview
3.1. Report Segmentation & Scope
3.2. Key Market Trend
3.3. Drivers
3.3.1. Growth in demand for prepaid cards
3.3.2. Increased product demand from merchants and retailers
3.3.3. Development of e-commerce gift card offerings
3.4. Restraints
3.4.1. Lack of security measures
3.5. Opportunity
3.5.1. Growth in product adoption in the corporate sector
3.6. Porter’s Five Forces Analysis
3.6.1. Porter’s Five Forces Analysis
3.7. Market Share Analysis

4. Functional Attribute Overview
4.1. Introduction
4.1.1. Market Size & Forecast
4.2. Open Loop
4.2.1. Market Size & Forecast
4.3. Closed Loop
4.3.1. Market Size & Forecast

5. Industry Vertical Overview
5.1. Introduction
5.1.1. Market Size & Forecast
5.2. Retail
5.2.1. Market Size & Forecast
5.3. Corporate Institutions
5.3.1. Market Size & Forecast

6. Gift Card Market Regional Overview
6.1. Introduction
6.1.1. Market Size & Forecast
6.2. North America Gift Card Market
6.2.1. North America Market Size & Forecast, By Country
6.2.2. North America Market Size & Forecast, By Functional Attribute
6.2.3. North America Market Size & Forecast, By Industry Vertical
6.2.4. U.S.
6.2.4.1. Market Size and Forecast
6.2.5. Canada
6.2.5.1. Market Size and Forecast
6.2.6. Mexico
6.2.6.1. Market Size and Forecast
6.3. Europe Gift Card Market
6.3.1. Europe Market Size & Forecast, By Country
6.3.2. Europe Market Size & Forecast, By Functional Attribute
6.3.3. Europe Market Size & Forecast, By Industry Vertical
6.3.4. Germany
6.3.4.1. Market Size and Forecast
6.3.5. France
6.3.5.1. Market Size and Forecast
6.3.6. UK
6.3.6.1. Market Size and Forecast
6.3.7. Italy
6.3.7.1. Market Size and Forecast
6.3.8. Russia
6.3.8.1. Market Size and Forecast
6.3.9. Rest of Europe
6.3.9.1. Market Size and Forecast
6.4. Asia-Pacific Gift Card Market
6.4.1. Asia-Pacific Market Size & Forecast, By Country
6.4.2. Asia-Pacific Market Size & Forecast, By Functional Attribute
6.4.3. Asia-Pacific Market Size & Forecast, By Industry Vertical
6.4.4. Japan
6.4.4.1. Market Size and Forecast
6.4.5. China
6.4.5.1. Market Size and Forecast
6.4.6. Australia
6.4.6.1. Market Size and Forecast
6.4.7. India
6.4.7.1. Market Size and Forecast
6.4.8. South Korea
6.4.8.1. Market Size and Forecast
6.4.9. Rest of Asia-Pacific
6.4.9.1. Market Size and Forecast
6.5. South America Gift Card Market
6.5.1. South America Market Size & Forecast, By Country
6.5.2. South America Market Size & Forecast, By Functional Attribute
6.5.3. South America Market Size & Forecast, By Industry Vertical
6.5.4. Brazil
6.5.4.1. Market Size and Forecast
6.5.5. Argentina
6.5.5.1. Market Size and Forecast
6.5.6. Rest of South America
6.5.6.1. Market Size and Forecast
6.6. Middle East & Africa Gift Card Market
6.6.1. Middle East & Africa Market Size & Forecast, By Country
6.6.2. Middle East & Africa Market Size & Forecast, By Functional Attribute
6.6.3. Middle East & Africa Market Size & Forecast, By Industry Vertical
6.6.4. GCC Countries
6.6.4.1. Market Size and Forecast
6.6.5. Egypt
6.6.5.1. Market Size and Forecast
6.6.6. South Africa
6.6.6.1. Market Size and Forecast
6.6.7. Rest of Middle East & Africa
6.6.7.1. Market Size and Forecast

7. Company Profile
7.1. Blackhawk Network Holdings, Inc.
7.1.1. Company Basic Information, Manufacturing Base, Sales Area and Its Competitors
7.1.2. Blackhawk Network Holdings, Inc. Product Category, Application, and Specification
7.1.3. Blackhawk Network Holdings, Inc. Financial Performance (2018-2019)
7.1.4. Main Business/Business Overview
7.2. Documax Inc.
7.3. Duracard Plastic Card Printing Company
7.4. First Data Corporation
7.5. National Gift Card Corp.
7.6. Plastek Card Solutions, Inc.
7.7. Qwikcilver Solutions Pvt. Ltd.
7.8. TenderCorp, LLC
7.9. TransGate Solutions
7.10. Worldpay, Inc.