Digital Gift Card Market: Global Expansion, Platform Innovation & Industry Growth

Growing preference for online shopping and contactless transactions is driving the digital gift card market. Expansion is supported by rising smartphone and internet penetration, increased e-commerce activities, and demand for personalized gifting solutions. According to IMARC Group's latest research publication, the global digital gift card market size reached USD 453.4 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 1,531.5 Billion by 2033, exhibiting a growth rate (CAGR) of 13.32% during 2025-2033.

How AI is Reshaping the Future of Digital Gift Card Market

• Advanced Fraud Detection and Security Enhancement: AI-powered fraud detection systems are transforming gift card security by analyzing transaction patterns, device fingerprints, and behavioral data to identify suspicious activities in real-time.
• Hyper-Personalization and Dynamic Customization: AI is enabling unprecedented levels of personalization in digital gift card offerings, transforming generic cards into meaningful, customized experiences.
• Predictive Analytics and Smart Inventory Management: AI-powered predictive systems are optimizing gift card distribution, demand forecasting, and promotional strategies across retail networks.

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Digital Gift Card Market Industry Overview:

The digital gift card landscape is experiencing a fundamental shift driven by mobile wallet integration and e-commerce proliferation. Over 60% of gift card sales in the market are now digital, with mobile wallet-based cards surging by 50% as platforms like Apple Pay and Google Pay embed gifting directly into daily transactions. Major retailers including Amazon, Walmart, Starbucks, and Apple dominate through extensive digital ecosystems and seamless omnichannel experiences.

Digital Gift Card Market Trends & Drivers

The explosive growth of e-commerce and digital payment platforms is the primary catalyst behind the digital gift card boom. Mobile wallets now account for 53% of online purchases globally, with over 70% of millennials preferring digital gift cards over physical alternatives. Digital wallets already dominate 39% of e-commerce transactions in the U.S., and are projected to reach 52% of online sales by the late 2020s.

Corporate gifting and employee engagement programs are emerging as powerful growth engines for digital gift cards. Over 50,000 companies with more than 1,000 employees now use gift cards for peer-to-peer recognition programs, with mid-size firms spending an average of nearly USD 500,000 annually on digital rewards.

The rise of self-gifting and strategic financial management through gift cards represents a fascinating behavioral shift in consumer spending. Approximately 35 million consumers are projected to use self-purchased gift cards specifically for streaming and media subscriptions, while 10 million use them to manage online gaming expenditures.

Leading Companies Operating in the Global Digital Gift Card Industry

• Amazon.com Inc.
• American Express Company
• Apple Inc.
• Blackhawk Network Holdings Inc.
• First Data Corporation
• Fiserv Inc.
• Givex Corporation
• InComm Inc.
• Paytronix Systems, Inc.
• Qwikcilver Solutions Pvt Ltd (Pine Labs)

Digital Gift Card Market Report Segmentation

By Card Type:

• Open Loop Gift Card
• Closed Loop Gift Card

Closed loop gift cards represent the largest segment as they enable retailers to retain revenue in-house and build stronger brand loyalty.

By Business Type:

• Business to Business (B2B)
• Business to Consumer (B2C)

Based on business type, the market has been segmented into B2B and B2C.

By Application:

• Food and Beverage
• Health, Wellness and Beauty
• Apparel, Footwear and Accessories
• Books and Media Products
• Consumer Electronics
• Restaurants and Bars
• Kids Products
• Others

By End User:

• Retail
• Festival Celebrations
• Special Celebrations
• Self-Use
• Others
• Corporate
• Corporate Gift
• Employee Prize
• Incentive Program

Retail end users hold the largest market share driven by increasing consumer preference for convenient, personalized gifting solutions.

Regional Insights:

• North America (United States, Canada)
• Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
• Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
• Latin America (Brazil, Mexico, Others)
• Middle East and Africa

North America exhibits clear dominance in the digital gift card market due to advanced digital payment infrastructure and high smartphone penetration.

Recent News and Developments in Digital Gift Card Market

• December 2025: TikTok Shop launched digital gift cards during the holiday season, enabling users to purchase gift cards for millions of products on the platform. This strategic move positions TikTok to compete directly with e-commerce giants like Amazon and eBay, leveraging its social commerce ecosystem to capture gifting market share.
• September 2025: OwlTing Group announced the launch of gift card purchases within its self-custody digital wallet, OwlPay Wallet Pro, allowing U.S. users to buy over 100 digital gift cards directly with USDC. The platform features popular brands including Airbnb, Amazon, Apple, Chipotle, DoorDash, Starbucks, Target, and Uber, with discounts up to 6%.
• April 2025: Starbucks Japan launched a new range of pink-themed drinkware and gift cards for Mother's Day, featuring floral and pastel designs. These limited-edition items available both in-store and online demonstrate how major brands leverage seasonal gifting opportunities to drive engagement and sales through themed digital gift card offerings.

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