Gift Card & Incentive Card Market – Global Industry Size, Share, Trends, Opportunity and Forecast, By Type (Gift Card, Incentive Card), By Purpose (Personal Use, Business Use, Others), By Application (Retail, Travel, Food & Beverages, Healthcare, Education, Others), By Region & Competition, 2020-2030F

Market Overview

Global Gift Card & Incentive Card market was valued at USD 268.34 billion in 2024 and is expected to grow to USD 402.01 billion by 2030 with a CAGR of 8.03% during the forecast period. The Gift Card & Incentive Card market is driven by several key factors. The rising adoption of digital payments and the expansion of e-commerce platforms have boosted demand for gift cards as convenient, cashless payment options. Also, corporate reward programs and employee incentives are fueling market expansion, as businesses increasingly use prepaid cards to enhance engagement and productivity. Personalized gifting trends, especially during festive seasons, further contribute to market growth. The shift toward mobile wallets and digital gift cards has also accelerated due to technological advancements and consumer preference for seamless transactions. Also, loyalty programs and promotional strategies by retailers and financial institutions enhance adoption rates. The increasing use of prepaid cards in emerging economies also presents significant growth opportunities in industry.

Key Market Drivers

Rising Popularity of Digital Payments

The growing adoption of digital payments is a major driver of the global gift card and incentive card market. As a part of this, according to a recent study, as of 2024, India recorded approximately 164 billion digital payment transactions, marking a substantial year-over-year growth compared to the previous three years. As consumers and businesses shift toward cashless transactions, gift cards and incentive cards have become preferred payment methods due to their convenience, security, and flexibility. The rise of mobile wallets, contactless payments, and e-commerce platforms has further accelerated this trend, making digital and virtual gift cards more accessible and widely accepted. Businesses are leveraging incentive cards as part of employee rewards and customer loyalty programs, capitalizing on the ease of digital transactions. Also, fintech innovations, such as blockchain and AI-powered fraud detection, are enhancing security and trust in digital payments, further boosting market growth. The COVID-19 pandemic played a crucial role in accelerating digital payment adoption, as consumers increasingly turned to online shopping and digital gift cards for seamless transactions. Emerging economies are also witnessing rapid digital transformation, contributing to the increasing penetration of prepaid and incentive cards. With governments promoting cashless economies, the demand for digital gifts and incentive cards is expected to grow significantly in the coming years.

Growing Corporate Incentive & Reward Program

The increasing adoption of corporate incentive and reward programs is a major driver of the global gift card and incentive card market. Businesses across various industries are leveraging gift and prepaid incentive cards to enhance employee engagement, boost productivity, and improve customer loyalty. Organizations are shifting from traditional reward methods to digital and prepaid cards, as they offer greater flexibility, instant delivery, and ease of use. Companies use these cards for sales incentives, performance-based rewards, employee recognition, and client appreciation programs. The rising importance of employee retention and motivation has further fueled demand, especially in competitive job markets. Also, businesses are integrating digital gift cards into customer loyalty programs, helping drive repeat purchases and brand engagement. Technological advancements, including automated rewards platforms and mobile wallet integrations, have made it easier for businesses to implement and manage incentive programs efficiently. The rise of remote work has also contributed to this trend, as digital gift cards provide a seamless way to reward employees and partners across different locations. With the corporate sector increasingly prioritizing personalized and flexible rewards, the demand for gift and incentive cards is expected to grow significantly.

Rising Disposable Income & Urbanization

The increasing disposable income and rapid urbanization worldwide are key factors driving the growth of the global gift card and incentive card market. As a part of this, according to IBEF, as of 2024, India's per capita disposable income increased from US$ 2.11 thousand in 2019 to US$ 2.54 thousand in 2023, reflecting steady economic growth, rising wages, and improved consumer spending capacity. As consumers gain higher purchasing power, their spending habits are shifting toward more convenient and flexible payment options, such as digital and physical gift cards. The rising middle-class population, especially in emerging economies, has led to greater demand for prepaid cards for personal use and gifting purposes. Urbanization is also contributing to changing consumer lifestyles, with a growing preference for online shopping, digital transactions, and personalized gifting solutions. As a part of this, according to a recent study, as of 2023, around one-third of India's population resided in urban areas, highlighting the country's ongoing urbanization and demographic shift toward city living. Gift cards have become a popular choice for birthdays, holidays, and special occasions, as they offer recipients the freedom to choose their preferred products and services. Also, the increasing penetration of smartphones and internet access has boosted the adoption of digital gift cards, making transactions seamless and secure. Also, businesses are leveraging incentive cards to attract urban consumers through loyalty programs, promotional offers, and employee rewards. With more people shifting toward cashless transactions and experiential spending, the demand for gift and incentive cards is expected to continue its strong upward trajectory.

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Key Market Challenges

Regulatory & Compliance Issues

Regulatory and compliance issues pose a significant challenge to the global gift card and incentive card market. Different countries have varying laws regarding the issuance, taxation, expiration policies, and anti-money laundering (AML) regulations for prepaid cards, making it complex for businesses to operate across multiple regions. Compliance with financial regulations such as the General Data Protection Regulation (GDPR) in Europe, the Payment Card Industry Data Security Standard (PCI DSS), and the Anti-Money Laundering (AML) laws increases operational costs and requires constant monitoring. Many governments have introduced strict guidelines to prevent fraud, money laundering, and misuse of prepaid cards. For instance, some regions mandate Know Your Customer (KYC) verification for high-value gift cards, limiting the anonymity and ease of use that make them attractive. Also, restrictions on cross-border usage and foreign exchange controls create difficulties for multinational businesses looking to implement global incentive programs. Frequent changes in regulatory frameworks require continuous adaptation by market players, leading to increased administrative burdens. To remain compliant while maintaining a seamless customer experience, companies must invest in legal expertise, technology, and fraud prevention systems, adding further complexities to the industry.

Fraud & Security Concern

Fraud and security concerns are major challenges in the global gift card and incentive card market, affecting both consumers and businesses. Gift cards are a popular target for fraudsters due to their cash-like nature, ease of transfer, and minimal security measures in some cases. Common fraud types include card cloning, phishing scams, account takeovers, and resale fraud. Cybercriminals exploit vulnerabilities in digital gift card systems to steal funds or manipulate balances. One of the most prevalent scams involves fraudsters tricking victims into purchasing gift cards under false pretence’s, such as impersonating company executives, government officials, or tech support representatives. Also, hacked or stolen gift card codes are often resold on unauthorized platforms, leading to financial losses for buyers. Businesses also face challenges with internal fraud, where employees may misuse corporate incentive cards. To combat these issues, companies must implement advanced fraud detection technologies, such as AI-driven monitoring, multi-factor authentication, and blockchain-based security. However, these solutions require significant investment. As cyber threats evolve, market players must continuously update security protocols and educate consumers to maintain trust and protect the growing digital gift card ecosystem.

Key Market Trends

Rising Trend of Buy Now & Redeem Later Model

The Buy Now, Redeem Later model is gaining significant traction in the global gift card and incentive card market. This trend allows consumers to purchase gift cards in advance and redeem them later, offering greater flexibility and financial convenience. Businesses across industries, including travel, hospitality, dining, and entertainment, are increasingly adopting this model to attract and retain customers. One of the key drivers behind this trend is the shift in consumer spending behaviour, where people prefer prepaid options for future use, especially during promotional periods or economic uncertainty. Travel companies and airlines, for example, offer prepaid vouchers that allow customers to book flights or accommodations later at a fixed rate, protecting them from price fluctuations. Similarly, restaurants and entertainment venues provide preloaded gift cards that can be used when convenient. Retailers and corporate incentive programs are also leveraging this trend to boost customer engagement and loyalty. The rise of digital and e-gift cards has further enhanced the adoption of this model, making transactions seamless. As consumers seek more control over their spending, the Buy Now, Redeem Later approach is expected to drive long-term market growth.

Sustainability & Eco-Friendly Gift Cards

The push for sustainability and eco-friendly solutions is transforming the global gift card and incentive card market. Traditionally, gift cards have been made from PVC plastic, contributing to environmental waste. However, increasing consumer awareness and corporate sustainability commitments are driving the adoption of biodegradable, recycled, and digital gift cards to reduce ecological impact. Retailers and financial institutions are now introducing gift cards made from recycled paper, wood, and compostable materials, significantly cutting down on plastic waste. Also, digital and e-gift cards are becoming more popular as they eliminate the need for physical production and packaging, aligning with carbon reduction goals. Companies like Starbucks, Amazon, and Visa have already implemented digital gift card solutions, promoting sustainability while enhancing customer convenience. Many businesses are also incorporating eco-conscious reward programs, offering incentives for customers who choose digital gift cards over physical ones. This shift is not only improving brand reputation but also meeting growing regulatory and corporate social responsibility (CSR) requirements. As environmental concerns continue to shape consumer preferences, sustainable and eco-friendly gift cards will play a crucial role in the market’s evolution.

Rise of Cross-Border & Multi-Currency Gift Cards

The growing demand for cross-border and multi-currency gift cards is transforming the global gift card and incentive card market. As international e-commerce expands and travel rebounds, consumers seek prepaid solutions that can be used seamlessly across different countries and currencies. Multi-currency gift cards enable recipients to shop or redeem rewards in various regions without the hassle of currency conversion or additional fees. Global brands, fintech companies, and digital payment providers are increasingly launching multi-currency and borderless gift cards to cater to international customers, expatriates, and digital nomads. These cards support transactions across multiple countries, making them ideal for global businesses, remote employees, and cross-border corporate incentives. Blockchain technology is further enhancing the functionality of multi-currency gift cards by offering secure, transparent, and real-time transactions, reducing fraud risks and foreign exchange complexities. Also, corporate clients are adopting these cards for global employee rewards programs, allowing teams across different regions to redeem incentives in their preferred currency. As digital payment ecosystems evolve and international spending grows, cross-border and multi-currency gift cards will play a crucial role in enhancing customer convenience and driving market expansion.

Segmental Insights

Type Insights

Gift Card dominated the global Gift Card & Incentive Card market due to their widespread adoption for personal gifting, retail promotions, and corporate rewards. The rising popularity of digital and e-gift cards has further fuelled market growth, offering instant delivery and seamless integration with mobile wallets. Retailers and e-commerce platforms use gift cards to drive customer engagement, boost sales, and enhance brand loyalty. Also, increasing consumer preference for flexible and personalized gifting options has contributed to their dominance. The growing penetration of online shopping, digital payments, and contactless transactions has strengthened the demand for gift cards. With businesses and individuals continuously seeking convenient payment solutions, gift cards remain the preferred choice in the global market. As a part of this, according to a recent study, as of 2023, approximately 35% of the global population engaged in weekly online shopping, reflecting the growing preference for e-commerce and digital retail experiences.

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Regional Insights

North America dominated the global Gift Card & Incentive Card market, due to its highly developed digital payment infrastructure, widespread adoption of e-commerce, and strong corporate culture of employee incentives and customer loyalty programs. The region's well-established retail sector, including major players like Amazon, Walmart, and Starbucks, has significantly contributed to the widespread use of gift cards. Also, Europe Gift Card & Incentive Card market is driven by the rapid adoption of digital payments, e-commerce expansion, and growing corporate incentive programs. The increasing demand for personalized and experiential gifting has fueled the popularity of gift cards across retail and hospitality sectors.

Recent Developments

• In January 2025, Value design entered a strategic partnership with Rucards, a leading innovator in India's digital payments and expense management ecosystem. This collaboration aims to transform the way businesses and individuals interact with gift cards, expense management solutions, and digital payments across India.
• In February 2025, Raise, a global leader in the gift card market and a pioneer in blockchain-powered payments and loyalty solutions, entered a strategic partnership with Bilt to integrate gift cards into the Bilt Rewards program. This collaboration enables Bilt members who earn rewards on rent payments and everyday spending to seamlessly redeem their points for gift cards through the Raise API.
• In September 2023, The Open Network for Digital Commerce (ONDC) launched the “ONDC Network Gift Card”, a network-wide gifting solution designed to enhance corporate gifting, employee engagement, and consumer shopping experiences. This innovative gift card enables businesses to streamline reward programs while providing consumers with the flexibility to shop across a vast network of sellers via any ONDC-enabled buyer application.

Key Market Players

• Spendgo, Inc.
• Emburse, Inc.
• Fiserv, Inc.
• Visa
• Blackhawk Network Holdings, Inc.,
• Interactive Communications International, Inc.
• Tango Card, Inc.,
• DCRS Solutions
• Pine Labs
• GoGift

Report Scope:

In this report, the Global Gift Card & Incentive Card Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

•   Gift Card & Incentive Card Market, By Type:

o   Gift Card

o   Incentive Card

• Gift Card & Incentive Card Market, By Purpose:

o   Personal Use

o   Business Use

o   Others

• Gift Card & Incentive Card Market, By Application:

o   Retail

o   Travel

o   Food & Beverages

o   Healthcare

o   Education

o   Others

• Gift Card & Incentive Card Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Asia-Pacific

§  China

§  Japan

§  India

§  Australia

§  South Korea

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   South America

§  Argentina

§  Colombia

§  Brazil

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

§  Turkey

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global Gift Card & Incentive Card Market.

Available Customizations:

Global Gift Card & Incentive Card Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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