Gift Card Market Set to Reach US$ 2,220.6 Billion by 2033 Amid Digital Payment Growth | Persistence Market Research

LONDON, June 4, 2026 /PRNewswire/ -- The global gift card market is experiencing remarkable expansion, projected to grow from US$ 825.3 billion in 2026 to US$ 2,220.6 billion by 2033, registering a CAGR of 15.2% during the forecast period. This growth is fueled by increasing consumer preference for convenient and personalized gifting solutions, rapid digital payment adoption, and the growing integration of gift cards with e-commerce platforms and loyalty programs. Businesses are increasingly using gift cards to strengthen customer relationships, improve retention rates, and drive repeat purchases.

Mobile-First Gifting Revolution Drives Market Expansion

The widespread adoption of smartphones and digital payment platforms is transforming how consumers purchase, send, and redeem gift cards. Mobile-friendly gift cards have become a preferred gifting option among younger consumers who prioritize convenience, instant delivery, and personalization. Unlike traditional gifting methods, digital gift cards allow recipients to access rewards immediately while offering senders a seamless purchasing experience.

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Consumer behavior data highlights this trend, with surveys showing that 50% of Gen Z and 49% of Millennials have increased their use of digital gift cards over the past year. Mobile wallets, including Apple Wallet, Google Pay, Paytm, and other digital payment applications, have further simplified storage and redemption processes, making gift cards a natural extension of everyday digital transactions.

Retailers are benefiting significantly from this shift. Industry research indicates that 61% of consumers spend more than the value of their gift card when making purchases, generating additional revenue opportunities for merchants. The convenience of mobile gifting, combined with higher redemption rates and increased consumer spending, is encouraging businesses to invest heavily in digital gift card programs.

Key Highlights

• The global gift card market is projected to grow from US$ 825.3 billion in 2026 to US$ 2,220.6 billion by 2033, registering a CAGR of 15.2%.
• Rising adoption of digital payments, mobile wallets, and e-commerce platforms continues to accelerate gift card usage across personal and corporate gifting applications.
• Physical gift cards lead the market with over 55% share, while e-gifting emerges as the fastest-growing segment, expanding at a CAGR of 20.1% through 2033.
• North America holds the leading regional position with more than 38% market share, supported by advanced digital infrastructure and high consumer adoption.
• The global gift cards (B2B) market is valued at US$ 455.0 Bn in 2026 and is projected to reach US$ 892.3 Bn by 2033, growing at a CAGR of 10.1% between 2026 and 2033.
• Asia Pacific is expected to witness the fastest growth at a CAGR of 20.6%, driven by expanding smartphone penetration, digital payment ecosystems, and rising disposable incomes.

Digital Payments and E-Commerce Integration Fuel Adoption

The rapid growth of digital payments and online retail continues to create new opportunities for the gift card market. Consumers increasingly prefer cashless transactions, driving demand for e-gift cards that can be purchased, delivered, and redeemed entirely through digital channels. This trend is particularly evident among Millennials and Gen Z consumers, who favor frictionless payment experiences.

The expansion of e-commerce platforms has accelerated gift card usage across multiple retail categories. Major retailers now integrate gift cards directly into online shopping journeys, enabling consumers to use them across websites, mobile applications, and physical stores. Omnichannel redemption capabilities have become a critical differentiator, providing flexibility and convenience for users.

Government-backed digitalization initiatives are also supporting market growth. Programs promoting cashless economies, digital payments, and secure transaction infrastructure are encouraging wider adoption of prepaid and gift card solutions. In emerging markets such as India, digital payment ecosystems powered by UPI and mobile wallets are creating substantial opportunities for gift card providers.

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Key Highlight: Launch of Tap-to-Pay Visa Gift Card - Secure Contactless Innovation (2025)

• A standout development in 2025 was the launch of the Tap to Pay Visa Gift Card by Blackhawk Network, in partnership with Visa. The product was introduced to enhance the security and usability of physical gift cards by removing sensitive card details (such as account numbers, CVV, and magnetic stripe data) from the physical card itself. Instead, users access funds through contactless tap-to-pay terminals or by adding the card to a mobile wallet using the MyCardWallet app. This innovation is designed to reduce fraud risk while enabling seamless in-store and online usage.
• The product is issued in tamper-evident packaging and relies on a secure activation and access system. Consumers can either tap the card directly at any contactless-enabled payment terminal or scan it through a mobile device to activate wallet-based usage. Additional features include balance tracking, transaction history access, and optional generation of secure digital credentials for online purchases where mobile wallets are not accepted.

The launch is part of Blackhawk Network's broader fraud prevention initiative known as BHN Protect™, which aims to secure hundreds of millions of gift card transactions globally each year. The Tap to Pay Visa Gift Card is positioned as a next-generation open-loop gift card product leveraging Visa's global acceptance network of more than 150 million merchant locations, ensuring widespread usability across both physical and digital commerce environments.

Segmentation Insights: Physical Leadership Meets Rapid E-Gifting Acceleration Worldwide

Physical gift cards continue to dominate the global gift card market, accounting for over 55% of market share and reaching a value of more than US$ 453.9 billion. Their popularity stems from the tangible and personalized gifting experience they offer, making them a preferred choice for birthdays, holidays, and corporate rewards. Closed-loop gift cards represent more than 68% of the physical card segment, supported by strong retailer branding and customer loyalty programs. Meanwhile, e-gifting is emerging as the fastest-growing segment, projected to expand at a CAGR of 20.1% and surpass US$ 1,487.8 billion by 2033. Growth is driven by instant delivery, seamless integration with mobile wallets, rising online shopping activity, and increasing demand for convenient, personalized gifting solutions across digital channels.

Regional Insights: North America Maintains Leadership While Asia Pacific Drives Future Growth

North America remains the largest market for gift cards, accounting for more than 38% of global revenue and reaching approximately US$ 313.6 billion. The region benefits from advanced digital infrastructure, widespread mobile payment adoption, and strong demand for loyalty and corporate reward programs. The United States continues to dominate regional growth, supported by extensive retail networks and increasing consumer preference for digital gifting solutions.

Asia Pacific represents the fastest-growing regional market and is projected to expand at a CAGR of 20.6% through 2033. Rapid smartphone adoption, rising disposable incomes, and the popularity of digital payment platforms such as UPI, Alipay, and Paytm are driving demand across the region. India and China are emerging as major growth engines, supported by expanding e-commerce ecosystems and government-led digitalization initiatives.

The Europe gift card market size is likely to be valued at US$75.4 Billion in 2025 and is estimated to reach US$121.7 Billion in 2032, growing at a CAGR of 7.1% during the forecast period 2025-2032, Europe maintains steady growth through increasing digital payment adoption and strong consumer protection frameworks. Retailers across the region are introducing sustainable card formats and digital alternatives to meet evolving consumer expectations. Meanwhile, Latin America and the Middle East continue to present attractive opportunities as digital commerce infrastructure improves and mobile payment adoption accelerates.

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Key Players and Business Strategies

Leading participants in the gift card market include Blackhawk Network, InComm Payments, Fiserv Inc., Amazon.com Inc., Walmart Inc., Target Corporation, Apple Inc., Starbucks Corporation, Visa Inc., and Mastercard Incorporated.

• Blackhawk Network continues to expand through AI-enabled personalization tools and omnichannel distribution capabilities, helping retailers improve customer engagement and conversion rates.
• InComm Payments focuses on strategic partnerships with retailers, financial institutions, and technology providers to strengthen distribution networks and enhance digital redemption experiences.
• Visa, Mastercard, and American Express are investing heavily in digital gift card ecosystems, supporting mobile wallet integration and cross-border gifting functionality.
• Retail leaders such as Amazon, Walmart, and Target are leveraging extensive customer bases and loyalty programs to increase gift card adoption and strengthen customer retention.

Strategies across the market increasingly emphasize digital innovation, omnichannel accessibility, personalization, loyalty integration, and partnerships with payment technology providers.

Market Segmentation

By Merchant

• Restaurants
• Department Stores
• Grocery Stores
• Supermarkets/Hypermarkets
• Discount Stores
• Coffee Shops
• Entertainment
• Salons/Spa
• Book Store
• Visa/Master Card/American Express Gift Card
• Others

By Card Type

• Physical Gift Cards
  • Open Loop Gift Cards
  • Closed Loop Gift Cards
• E-Gifting

By Price Range

• High (Above US$ 400)
• Medium (US$ 200-400)
• Low (Below US$ 200)

By Sales Channel

• Online
• Offline

By End-user

• Business
  • Small and Medium Enterprises
  • Large Enterprises
• Individuals

By Region

• North America
• Europe
• East Asia
• South Asia and Oceania
• Latin America
• Middle East and Africa

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