A gift card is a prepaid store-value money card issued by the retailer or a bank and can be used instead of cash when purchasing from that particular store. Most gift cards are redeemable only in the specific retailer unless otherwise explicitly stated so. While customers usually buy gift cards for friends and family as a gift, its popularity has surged during the pandemic. The increase in sales of gift cards can be attributed to the fact that they are convenient, easy to buy, and passed on to the recipient.
The rise in the global gift cards market is also influenced by several factors that include the demand for prepaid cards, people preferring advanced payment solutions, increase in the number of smartphone users, its application in diverse stores,
Here are some of the most popular players in the gift card market:
- Google Play
- Best Buy
- JCB Gift Card
Gift cards are an effective way to show to your loved ones that you care about them. Earlier, gift cards used to be popular in North America and Europe. But you will find that it is not the case anymore as consumer behavior has changed drastically in other parts of the world, thanks to disposable income. They are now getting popular in the Asia Pacific and Latin America. Countries like China and India especially have witnessed a boom in the gift card market.
There has been a massive shift from physical gift cards to digital gift vouchers. With more and more customers purchasing online, digital gift vouchers seem like the most viable option. When it is a digital voucher, you can immediately gift them to your loved ones. There is no waiting, just a simple email, and you are done.
The gift card industry is expected to be worth $2.7 trillion by 2027, based on a report titled ‘Gift Card- Global Market Trajectory & Analytics’ by ResearchandMarkets.com. This prediction is despite Covid-19 and its repercussions. This is a telling statement on the kind of impact gift cards have had on consumer behavior.
Here are some interesting statistics from the ReserachandMarkets.com report
1. The US gift cards market is currently estimated at $278.8 billion.
2. China is forecasted to reach a projected market size of $608.1 billion by 2027
3. Germany’s gift card market is expected to grow at approximately 11.4% CAGR.
4. The open-loop gift card segment is projected to grow at 15.4% CAGR and reach $747.3 billion by 2027
5. The Asia-Pacific market (led by India, Australia, and South Korea) is expected to reach $404.8 billion by 2027
The presence of many online payment options has positively affected the gift card industry since it allows more people to do online shopping. Thanks to a thriving eCommerce industry, the global gift card market will expand rapidly.