The global gift cards market size was valued at USD 1393.48 billion in 2025 and is projected to grow from USD 1609.47 billion in 2026 to USD 5097.3 billion by 2034 at a CAGR of 15.5% during the forecast period 2026-2034. North America dominated the gift cards market with a market share of 39.4% in 2025.
Gift cards are prepaid cards or digital vouchers that allow users to purchase products or services up to a specified value. They are commonly used for personal gifting, employee rewards, promotional campaigns, and customer loyalty programs across retail, hospitality, entertainment, and e-commerce. Demand is growing due to the rapid expansion of online shopping, digital payments, and the increasing popularity of cashless gifting solutions.
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Growing Shift Toward Digital Gift Cards and Mobile Payments
Gift cards market trends are being driven by the rapid adoption of digital gift cards and mobile payment platforms. Consumers are increasingly choosing e-gift cards because they can be purchased instantly, delivered electronically, and redeemed through smartphones or online stores. Retailers are also expanding digital gifting options to improve customer convenience and increase brand engagement. The growing popularity of online shopping, digital wallets, and contactless payments is further boosting demand for electronic gift cards across retail, entertainment, travel, and food service sectors. These developments are supporting gift cards market growth as digital gifting becomes a preferred choice for both consumers and businesses.
Rising Innovation in Personalized and Corporate Gift Card Programs
Gift cards market trends are also being influenced by the growing demand for personalized gifting experiences and corporate reward programs. Businesses are increasingly using gift cards for employee recognition, customer loyalty campaigns, and promotional incentives. At the same time, retailers are introducing customizable digital gift cards with personalized messages, branded designs, and flexible redemption options to improve customer engagement. Integration with loyalty platforms and mobile applications is also making gift cards easier to manage and redeem. These innovations are strengthening gift cards market share by expanding the use of gift cards across both consumer and business applications.
Growing Popularity of Digital Gifting and Cashless Payments
The gift cards market is growing rapidly as consumers increasingly choose gift cards for birthdays, festivals, corporate rewards, and special occasions. Digital gift cards offer convenience, instant delivery, and flexible spending options, making them popular among both consumers and businesses. The rapid growth of e-commerce, mobile payments, and digital wallets is strengthening gift cards market demand. Companies are also using gift cards to improve customer loyalty and employee reward programs, further supporting market growth.
Fraud Risks and Security Concerns
The gift cards market faces challenges because fraud, phishing scams, and unauthorized card usage continue to affect consumer confidence. Digital gift cards are sometimes targeted by cybercriminals through fake websites and fraudulent redemption methods. In addition, different expiry policies and unused card balances may reduce customer satisfaction in some markets.
Expansion of Corporate Reward Programs and Digital Platforms
The gift cards market offers strong opportunities as businesses increasingly use gift cards for employee recognition, customer incentives, promotional campaigns, and loyalty programs. The integration of gift cards with mobile apps, digital wallets, and e-commerce platforms is making them easier to purchase and redeem. Growing demand for personalized gifting experiences is expected to strengthen gift cards market share over the coming years.
Managing Multiple Payment Platforms and Regulatory Requirements
The gift cards market continues to face challenges in ensuring smooth transactions across different payment systems, retailers, and countries. Companies must protect customer data, prevent fraudulent transactions, and comply with changing financial and consumer protection regulations. Managing cross-border redemption and maintaining a seamless user experience also remain important priorities. Continued investment in secure payment technologies, digital innovation, and fraud prevention will be essential for long-term market growth.
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Closed Loop Gift Card Segment Dominated the Market with 49.8% Share in 2025
The closed loop gift card segment dominated the global gift cards market with a 49.8% share in 2025. Closed loop gift cards remain the preferred choice because they are issued by specific retailers or brands and help increase customer loyalty, repeat purchases, and brand engagement. Their widespread adoption across retail stores, restaurants, and service providers continues to strengthen the segment's leading position.
The open loop gift card segment is also growing steadily as consumers increasingly prefer cards that can be used at multiple merchants. These cards provide greater flexibility for both personal gifting and corporate rewards.
Within the closed loop category, retail closed loop cards account for the largest share due to their extensive use by retail brands, followed by restaurant closed loop cards and miscellaneous closed loop cards. Within the open loop category, universally accepted open loop cards continue to witness strong demand, while e-gifting is growing rapidly as digital gifting becomes more popular through online platforms and mobile applications.
Retail Establishments Segment Dominated the Market with 67.3% Share in 2025
The retail establishments segment dominated the global gift cards market with a 67.3% share in 2025. Retail businesses continue to use gift cards as an effective tool to attract customers, increase sales, and encourage repeat purchases. The growing popularity of gift cards during holidays, festivals, and promotional campaigns continues to support this segment's leading position.
The corporate institutions segment is also growing steadily as companies increasingly use gift cards for employee rewards, customer incentives, promotional campaigns, and business gifting. Rising corporate spending on employee engagement programs continues to drive demand in this segment.
The growing acceptance of digital payments and expanding gift card programs are expected to support both end-user segments.
Restaurants Segment Dominated the Market with 14.2% Share in 2025
The restaurants segment dominated the global gift cards market with a 14.2% share in 2025. Restaurant gift cards remain highly popular for personal gifting, celebrations, and promotional campaigns, helping restaurants attract new customers and increase repeat visits. Their convenience and broad consumer appeal continue to support market growth.
The supermarkets/hypermarkets, department stores, grocery stores, discount stores, coffee shops, entertainment venues, salons & spas, home décor stores, gas stations, and Visa/MasterCard/American Express gift card segments are also witnessing steady growth. These merchants continue to expand their gift card offerings to improve customer engagement and support both in-store and digital purchases.
The others segment also contributes to market growth as businesses across various industries increasingly introduce branded gift card programs. Rising consumer preference for flexible gifting options is expected to support demand across all merchant categories.
Low (0–200 US$) Segment Dominated the Market with 46.9% Share in 2025
The low (0–200 US$) segment dominated the global gift cards market with a 46.9% share in 2025. Lower-value gift cards remain the most popular because they are affordable, convenient, and widely used for birthdays, festivals, employee recognition, and everyday gifting. Their accessibility continues to strengthen the segment's leading position.
The medium (200–400 US$) segment is also growing steadily as consumers and businesses increasingly purchase higher-value gift cards for corporate rewards, incentive programs, and special occasions.
The high (above 400 US$) segment is witnessing healthy growth due to rising corporate gifting, premium customer reward programs, and increasing consumer spending on luxury products and experiences. Expanding digital payment adoption is expected to support growth across all price ranges.
Offline Segment Dominated the Market with 56.4% Share in 2025
The offline segment dominated the global gift cards market with a 56.4% share in 2025. Physical retail stores continue to account for the largest share as many consumers prefer purchasing gift cards while shopping in supermarkets, department stores, and specialty retail outlets. In-store promotions and impulse purchases continue to support this segment's leading position.
The online segment is also growing rapidly as consumers increasingly purchase digital and physical gift cards through e-commerce platforms, retailer websites, and mobile applications. The convenience of instant delivery, digital wallets, and personalized gifting options continues to accelerate online adoption.
The expansion of e-commerce, mobile payments, and digital gifting platforms is expected to support long-term growth across both offline and online sales channels.
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North America gift cards market accounted for 39.4% of the global market, reaching USD 549.03 billion in 2025, and is projected to grow at a CAGR of 15.6% during the forecast period. The market is growing rapidly because of increasing digital payments, rising online shopping, and strong consumer demand for convenient gifting options. Retailers are also expanding digital gift card offerings and loyalty programs, which is supporting market growth.
The US market was valued at USD 466.68 billion in 2025, making it the largest contributor in North America. Strong e-commerce growth, increasing corporate gifting, and rising adoption of digital wallets continue to drive market growth.
Canada's market reached USD 82.35 billion in 2025. Growing demand for prepaid cards, expanding online retail, and increasing use of gift cards for rewards and promotions continue to support steady market growth.
Europe gift cards market accounted for 25.8% of the global market, reaching USD 359.52 billion in 2025, and is expected to register a CAGR of 14.9% during the forecast period. Increasing digital payment adoption, rising e-commerce activity, and growing use of gift cards by businesses for employee rewards and customer engagement are supporting market growth. Consumers are also choosing digital gift cards because of their convenience and flexibility.
Germany's market accounted for USD 104.26 billion in 2025. Strong retail sales, increasing use of digital payment solutions, and growing consumer preference for prepaid gift cards continue to support market growth.
The UK market was valued at USD 71.90 billion in 2025. Rising online shopping, expanding corporate reward programs, and increasing demand for digital gift cards continue to contribute to market growth.
Asia Pacific gift cards market accounted for 24.6% of the global market, valued at USD 342.80 billion in 2025, and is projected to register a CAGR of 18.7% during the forecast period. Rapid digitalization, expanding e-commerce platforms, and increasing smartphone usage are driving market growth across the region. The growing popularity of cashless transactions and digital gifting is also creating new opportunities.
Japan's market generated USD 61.70 billion in 2025. Rising adoption of digital payment methods, growing retail spending, and increasing demand for convenient gifting solutions continue to support market growth.
China's market accounted for USD 178.26 billion in 2025, representing the largest share within Asia Pacific. Rapid growth in online shopping, widespread use of mobile payment platforms, and increasing consumer spending continue to drive market growth.
Brazil's market reached USD 40.51 billion in 2025. Expanding e-commerce, increasing digital banking adoption, and growing demand for promotional and prepaid gift cards continue to create growth opportunities.
Middle East & Africa gift cards market accounted for 4.5% of the global market, totaling USD 62.71 billion in 2025, and is anticipated to grow at a CAGR of 14.6% during the forecast period. Rising digital payment adoption, expanding retail networks, and growing demand for cashless gifting solutions are supporting market growth across the region. Increasing smartphone penetration is also encouraging the use of digital gift cards.
The UAE market was valued at USD 22.58 billion in 2025. Growing tourism, expanding retail and hospitality sectors, and increasing use of digital payment platforms continue to support market growth.
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Author's Details
Research Associate
Tejas Zamde is a Research Associate with 2 years of experience in market research. He specializes in analyzing industry trends, assessing competitive landscapes, and providing actionable insights to support strategic business decisions. Tejas’s strong analytical skills and detail-oriented approach help organizations navigate evolving markets, identify growth opportunities, and strengthen their competitive advantage.
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