(MENAFN- GlobeNewsWire - Nasdaq) A fundamental shift toward digitalization defines the gift card market, as e-gift cards now outpace physical sales. This trend is fueled by consumer demand for mobile convenience and rising adoption in corporate and personal budgeting strategies.

Chicago, Nov. 11, 2025 (GLOBE NEWSWIRE) -- The global gift cards market was valued at US$ 920.8 billion in 2024 and is projected to reach US$ 2,280.1 billion by 2033, growing at a CAGR of 10.6% during the forecast period 2025–2033.

A fascinating shift in consumer behavior is the rise of self-gifting. Consumers are now strategically purchasing gift cards for their own use, transforming them into powerful tools for financial management. The average value of a gift card purchased for self-use in 2024 stands at US$ 51.93. Furthermore, consumers who buy these cards for themselves do so an average of 5 times per year in 2024. This trend reflects a deliberate effort to control discretionary spending. For instance, in 2024, approximately 15 million shoppers utilized self-bought gift cards to manage their back-to-school budgets effectively in the gift cards market.

Request Sample Pages:

The applications for self-gifting are expanding across various sectors. An estimated 35 million consumers in 2025 will use self-purchased gift cards specifically for subscribing to streaming and media services. The average amount loaded onto a self-use digital gift card for grocery shopping is projected to be US$ 75 in 2025. Similarly, it is anticipated that in 2025, 10 million consumers will purchase gift cards to manage spending on online gaming. In a surprising financial twist, an estimated 5 million consumers in 2024 used self-purchased gift cards to pay off mortgages or other loans, showcasing the expanding utility within the gift cards market.

Market Forecast (2033)	US$ 2,280.1 Billion
CAGR	10.6%
Largest Region (2024)	North America (46.82%)
By Type	Closed-loop Gift Cards (39.63%)
By Application	Consumer Gifting (27.89%)
By Type of Consumer	Individuals (B2C) (59%)
By Distribution Channel	Online (61.36%)
Top Drivers	Surging adoption of mobile wallets simplifies gift card redemption processes. Corporate demand for digital cards in employee reward programs expands. Consumer desire for flexible, immediate, and personalized gifting options grows.
Top Trends	AI-powered platforms deliver highly personalized gift card recommendations to users. Integrating gift cards with loyalty programs to boost customer retention. Self-use purchasing of gift cards for budgeting and discount access.
Top Challenges	Increasingly sophisticated digital gift card fraud and scamming techniques. Intensifying market competition from alternative payment and gifting technologies. Navigating the complex web of regional and international compliance laws.

Corporate Micro-Incentives Are Reshaping and Enhancing Employee Engagement Initiatives

In the corporate world, the gift cards market is a cornerstone of employee engagement and motivation. Businesses are moving towards high-frequency, lower-value "micro-incentives" to foster a positive and productive environment. The average value of a corporate gift card used for employee incentives in North America is US$ 152 in 2024. The most common denomination for these B2B micro-incentive gift cards in 2024 is US$ 25, making them perfect for immediate recognition. In 2025, it is expected that over 20 million digital gift cards will be distributed for corporate wellness program participation.

The scale of corporate adoption is impressive and continues to grow across the global gift cards market. The number of companies with over 1,000 employees using gift cards for peer-to-peer recognition is set to exceed 50,000 in 2024. Mid-size firms show an average annual spend on gift cards of nearly US$ 500,000. For larger companies with revenues over US$ 1 billion, more than 60% purchase over US$ 10,000 in rewards cards annually. Looking ahead, an estimated 8 million gig economy workers are projected to receive payments via gift cards in 2025, highlighting their growing role in alternative payment systems.

Omnichannel Redemption Patterns are Driving Significant and Valuable Consumer Overspending in Gift Cards Market

A seamless omnichannel experience is no longer a luxury but an expectation. The integration of gift cards across online and physical retail channels is a critical driver of consumer spending. A key metric is that consumers, on average, spend an additional US$ 31.75 beyond the gift card's value when redeeming. It is anticipated that in 2025, over 300 million digital gift card redemptions will occur in-store via a mobile device. Further illustrating their convenience, an estimated 25 million consumers in 2024 will use a digital gift card to "click and collect" an online order at a physical store.

Redemption speed and holding patterns offer further insights into consumer habits. During the 2024 holiday season, 30% of recipients used their gift cards within 15 days. Moreover, over 84% of holiday gift cards are redeemed within five months of receipt. The average time a B2C gift card is held before redemption is between 2 to 3 months. To support this behavior, the number of retailers offering a unified gift card balance across all channels is expected to surpass 1,000 in 2025, solidifying the importance of an integrated approach in the gift cards market.

The Untapped Potential of Secondary Markets and Massive Unredeemed Balances

A substantial amount of value remains locked in unredeemed gift cards, creating both a challenge for retailers and a significant opportunity for secondary gift cards markets. The average American holds US$ 244 in unused gift cards in 2024, with millennials having the highest average at US$ 332 per person. This culminates in a staggering total value of unspent gift cards in the U.S., which is around US$ 23 billion. This phenomenon is global, with Marks & Spencer in the UK reporting £215.1 million in outstanding gift cards in 2025.

Similarly, John Lewis Partnership in the UK listed £105 million in unredeemed vouchers in their 2025 accounts. This pool of unused value fuels a vibrant secondary market where consumers can buy and sell unwanted cards. An estimated 25 million gift cards will be resold on these secondary market platforms in 2025. The average discount for a gift card on a resale platform in 2024 is 12%, providing a clear incentive for consumers and highlighting a key sub-sector within the broader gift cards market.

Artificial Intelligence Is Unleashing Unprecedented Levels of Hyper-Personalized Gifting Experiences

Artificial intelligence (AI) is set to revolutionize the gift cards market by enabling deep personalization and enhanced security. Nearly half of consumers are using AI to find personalized gift suggestions in 2025, indicating a strong appetite for tailored experiences. Consequently, over 70% of brands believe AI will fundamentally change their personalization strategies. The number of unique gift card designs generated by AI is expected to exceed 1 million in 2024, offering endless customization options for consumers.

The operational impact of AI is equally significant. By 2025, it is projected that 5 million gift card transactions will be initiated through AI-powered chatbots. An estimated 15 million consumers will receive a personalized gift card offer based on their browsing history in 2025. On the security front, AI-driven fraud detection systems are expected to prevent over 5 million fraudulent transactions in 2024. Furthermore, the number of marketing campaigns using AI to determine the optimal time to send a gift card offer is set to reach 500,000 in 2025.

Cross-Border Digital Gifting is Transforming Global Remittance and Payment Channels in Gift Cards Market

Digital gift cards are rapidly becoming a preferred method for cross-border transactions and remittances, offering a convenient and cost-effective alternative to traditional services. The global digital remittance market is projected to reach US$ 29.2 billion in 2025. The active user base for digital remittances is predicted to reach 95 million by the same year. In a key technological shift, it is anticipated that 12% of all global remittances will use blockchain-powered systems by 2025.

Mobile technology is at the forefront of this trend in the gift cards market. Mobile-based remittance transactions are expected to account for 60% of all digital remittance transfers in 2025. In 2025, the number of cross-border gift card transactions is expected to exceed 50 million. The average cost of sending US$ 200 via digital remittance channels is projected to be a competitive 4.6% in 2025. As evidence of regional growth, Latin America and the Caribbean are expected to receive over US$ 158 billion in remittances in 2025.

The Powerful API Economy is Fueling Seamless Embedded Gifting Across Platforms

The integration of gift card functionality into third-party applications via APIs is creating a new ecosystem of "embedded gifting" in the gift cards market. The number of API calls for issuing and redeeming digital gift cards is projected to exceed 10 billion in 2025, signaling massive growth. Over 500 fintech apps are expected to offer in-app gift card purchasing by 2025, making gifting a seamless part of the user experience. The number of banking apps that allow customers to purchase gift cards directly from their accounts is projected to reach 300 in 2024.

This API-driven integration is appearing across numerous platforms. It is estimated that 200 million loyalty points will be converted into gift cards via API integrations in 2024. The volume of gift cards sent through messaging and social media apps is expected to grow by 25% in 2025, with an estimated 5 million gift cards being purchased directly through a brand's social media page in 2024. To support this ecosystem, over 1,000 major brands are expected to offer their gift cards through third-party API-driven marketplaces by 2025.

Evolving Fraud Vectors Are Forcing Advanced Security Measures in the Industry

The growth of the gift cards market has unfortunately been accompanied by an increase in sophisticated fraud attempts, necessitating robust security investments. An estimated 1 in 4 people who report fraud to the FTC say it involved gift card numbers. The total value of fraudulent gift card transactions is projected to reach US$ 3 billion in 2025. Account takeover attacks targeting stored gift card balances are expected to affect 2 million accounts in 2024, posing a direct threat to consumers.

In response, the gift cards market is heavily investing in countermeasures. Retailers are expected to invest over US$ 500 million in AI-powered fraud detection for gift cards in 2025. Despite these efforts, the number of phishing scams aimed at stealing gift card information is anticipated to exceed 10 million in 2025. The number of chargebacks related to fraudulent gift card purchases is projected to be 3 million in 2024. A key source of fraud remains stolen financial data, with an estimated 1 million stolen credit cards expected to be used to purchase gift cards in 2025.

Looking for Country-Level or Section-Wise Data? Customize This Report:

Sustainability and Competition Now Define the Future Dynamic Marketplace Landscape

Environmental concerns and intense competition are shaping the future of the gift cards market. A significant shift towards sustainable materials is underway. One manufacturer has already produced 2.6 billion paper gift cards as of early 2024. The environmental impact is stark: producing a single plastic gift card creates 21 grams of carbon, while a paper card produces only 0.66 grams. It is projected that by 2025, over 100 million gift cards will be made from recycled PVC. Major retailers are joining this movement, with 20 expected to have completely phased out PVC gift cards by 2025. The number of major retailers offering a digital-only gift card option is expected to exceed 1,500 in 2025, while novelties like 50 million seed paper cards and 10 million wooden cards will be sold in 2024 and 2025, respectively.

Meanwhile, the competitive landscape of the gift cards market is dominated by key players expanding their global reach and technological prowess. Blackhawk Network (BHN) is projected to have a network of over 1,500 retail partners by the end of 2025, while InComm Payments is expected to process over 3 billion gift card transactions in the same year. These platforms are expanding globally, with services set to be offered in over 40 countries in 2024. Collectively, they are anticipated to invest a combined US$ 200 million in technology in 2024 and manage over 5,000 corporate rewards programs in 2025. The number of API integrations supported by these leading platforms is projected to surpass 10,000 in 2025, with the volume of cross-border B2B gift card transactions they manage expected to reach 100 million in 2024.

Global Gift Cards Market Major Players:

• Amazon Inc.
• American Express Company
• Best Buy
• Blackhawk Network
• EBIXCASH WORLD MONEY INDIA Ltd.
• Fiserv, Inc.
• InComm Payments LLC
• Mastercard
• PayPal, Inc.
• Qwikcilver Solutions Pvt Ltd.
• Sephora USA, Inc.
• Shift4 Payments, LLC
• Starbucks Corporation
• Target Brands, Inc.
• The Home Depot
• Valve Corporation
• Visa Inc.
• Walmart Inc.
• Other Prominent Players

Key Market Segmentation:

By Type

• Closed-Loop Gift Cards
• Open-Loop Gift Cards
• E-Gift Cards
• Physical Gift Cards
• Promotional & Loyalty Gift Cards
• Others

By Type of Consumer

• Individuals (B2C)
• Businesses/Corporate (B2B)
• Institutional/Non-Profit Organizations

By Application

• Consumer Gifting
• Corporate Gifting & Incentives
• Online Shopping & E-Commerce
• Travel & Hospitality
• Food & Beverages
• Entertainment & Media
• Healthcare & Wellness
• Others

By Region

• North America
• Europe
• Asia Pacific
• Middle East and Africa
• South America

Need a Detailed Walkthrough of the Report? Request a Live Session:

About Astute Analytica

Astute Analytica is a global market research and advisory firm providing data-driven insights across industries such as technology, healthcare, chemicals, semiconductors, FMCG, and more. We publish multiple reports daily, equipping businesses with the intelligence they need to navigate market trends, emerging opportunities, competitive landscapes, and technological advancements.

With a team of experienced business analysts, economists, and industry experts, we deliver accurate, in-depth, and actionable research tailored to meet the strategic needs of our clients. At Astute Analytica, our clients come first, and we are committed to delivering cost-effective, high-value research solutions that drive success in an evolving marketplace.

Contact Us:
Astute Analytica
Phone: +1-888 429 6757 (US Toll Free); +91-0120- 4483891 (Rest of the World)
For Sales Enquiries: ...
Website:
Follow us on: LinkedIn Twitter YouTube

CONTACT: Contact Us: Astute Analytica Phone: +1-888 429 6757 (US Toll Free); +91-0120- 4483891 (Rest of the World) For Sales Enquiries:... Website:

MENAFN11112025004107003653ID1110327969