Gift Cards Market (Type - Open Loop Gift Card, and Closed Loop Gift Card; End-user - Retail Establishments, and Corporate Institutions): Global Industry Analysis, Trends, Size, Share and Forecasts to 2026

A recent report published by Infinium Global Research on the gift cards market provides an in-depth analysis of segments and sub-segments in the global as well as regional gift cards market. The study also highlights the impact of drivers, restraints, and macro indicators on the global and regional gift cards market over the short term as well as long term. The report is a comprehensive presentation of trends, forecasts, and dollar values of the global gift cards market. According to the report, the global gift cards market is projected to grow at a healthy CAGR over the forecast period of 2020-2026. 

Market Insight 

The use of modern technology and marketing strategies has created different ways for gift card lovers and smartphone users to integrate everything into one convenient package. The current concern over the spread of coronavirus is expected to have a moderate impact on the gift cards market. The growth of the gift card industry is estimated to be impacted because of the loss of purchasing power and several socio-economic environments generated by the novel coronavirus. Yet, the COVID-19 pandemic has definitely impacted the growth of the e-commerce business, a trend which will be continuous in the coming quarters as lockdown reductions upsurge. Hence, this is anticipated to drive demand for gift cards market.

Gift cards have become more innovative with the rapid development of smartphones. The increased adoption of smartphones is anticipated to boost the gift cards market by offering a flexible & convenient way of payment for the customers. In addition, the gift cards market is projected to experience significant growth during the projection period, owing to technological innovation in product offerings and an upsurge in application areas such as hospitality, banking, and retail stores. Gift cards contain prepaid stored-value money cards dispensed by a retailer or bank to be used as an alternative to cash for purchases within a definite store or associated trades. These cards are used during diverse events such as dining, retail purchase, entertainment, convenience shopping, and others.

Furthermore, an increase in the need for advanced promotional strategies, a high adoption rate of smartphones, and growth-related to the e-commerce industry drive the global gift cards market. In addition, an increase in the popularity of these cards during traveling and upsurge in demand for gift cards from developing countries is anticipated to boost the market growth in the near future. On the other hand, numerous types of fees associated with card transaction and the dearth of security measures as compared to credit or debit cards are major limitations that hamper the growth of the market. 

Among the geographies, North America region is expected to hold the largest share in the global gift cards market as countries such as the U.S. and Canada is the front-runners in adopting new technology. Further, factors such as the favorable rate of return generated for vendors will significantly influence gift cards market growth in the North American region. Furthermore, the Asia Pacific region is anticipated to witness high growth during the forecast period owing to the rising adoption of digital services in emerging economies such as China and India. An increase in demand for advanced products and technological advancements associated with payment solutions are the factors responsible for the growth of the market.

Segment Covered

The report on the global gift cards market covers segments such as type, and end-user. On the basis of type, the sub-markets include open loop gift card, and closed loop gift card. On the basis of end-user, the sub-markets include retail establishments, and corporate institutions.

Companies Profiled:

The report provides profiles of the companies in the market such as Amazon.com, Inc., American Express, Blackhawk Network Holdings, Inc., First Data Corporation, Fiserv, Inc., Givex Corporation, InComm Inc., Qwikcilver Solutions Pvt Ltd, NGC US, LLC, and Paytronix Systems, Inc.

Report Highlights:

The report provides deep insights into the demand forecasts, market trends, and micro and macro indicators. In addition, this report provides insights into the factors that are driving and restraining the growth in this market. Moreover, The IGR-Growth Matrix analysis given in the report brings an insight into the investment areas that existing or new market players can consider. The report provides insights into the market using analytical tools such as Porter's five forces analysis and DRO analysis of gift cards market. Moreover, the study highlights current market trends and provides forecast from 2020-2026. We also have highlighted future trends in the market that will affect the demand during the forecast period. Moreover, the competitive analysis given in each regional market brings an insight into the market share of the leading players.