This report projects that the global gift cards market size was valued at $619.25 billion in 2019, and is projected to reach $1,922.87 billion by 2027, growing at a CAGR of 14.9% from 2020 to 2027.
North America is the highest revenue contributor across the globe; owing to increase in government initiatives for the adoption of digital payments alternatives for cash in many sectors such as hospitality, banking, corporate institutions, and retailers.
A gift card is similar to a prepaid debit card that consists of a specific amount of money available that can be used for purchasing goods.
Many gift cards have certain limit i.e. minimum and maximum initial loading amount, for example the minimum amount is $10 and maximum is $500.
In most of the cases, gift cards are used to pay for a portion of a purchase with cash, debit or credit in order to balance the expense.
As a precaution to mitigate the risk of losses, many gift cards are registered online, which allows the remaining balance to be tracked and frozen if a card is lost.
Gift cards provide more security as compared to cash and are easily traceable, which can avoid fraudulent activity.
Rise in adoption of advance technology in the payment sector and A surge in awareness of digital payment across the globe drives the growth of the market.
In addition, high adoption of smartphones and a rise in adoption of gift cards by corporate offices and financial institutions fuels the growth of the market.
However, security concerns in respect to gift cards can hamper the growth of the market.
Furthermore, A surge in demand for gift cards from developing countries offers lucrative opportunities for the market growth globally.
The gift cards market is categorized on the basis of card type, end user and region.
Depending on card type, the market is classified into open loop gift card and closed loop gift card.
By End User, the market is analyzed across retail establishments and corporate institutions.
By Region, the market is studied across North America, Europe, Asia-Pacific, and LAMEA, along with its prominent countries.
The key players profiled in the gift cards market analysis are Amazon.com, Inc., American Express, Blackhawk Network Holdings, Inc., First Data Corporation, Fiserv, Inc., Givex Corporation, InComm Inc., NGC US, LLC, Qwikcilver Solutions Pvt Ltd, and Paytronix Systems, Inc.
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