Digital Gift Card Market Size, Trends and Insights By Card Type (Closed Loop, Open Loop), By Application (Consumer Goods, Health and Wellness, Restaurants and Bars, Travel and Tourism, Others), By Distribution Channel (Online, Offline), and By Region - Global Industry Overview, Statistical Data, Competitive Analysis, Share, Outlook, and Forecast 2025 – 2034
The global digital gift card market was valued at USD 510 Bn in 2025 and is projected to reach USD 1,596 Bn by 2034, growing at a CAGR of 13.5%. Asia-Pacific is the largest regional market and North America is growing fastest.
Global Digital Gift Card Market 2025 – 2034 (By Billion)
As per the Digital Gift Card Market analysis conducted by CMI Team, the global digital gift card market is expected to record a CAGR of 13.5% from 2025 to 2034. In 2025, the market size is projected to reach a valuation of USD 510 Billion. By 2034, the valuation is anticipated to reach USD 1596 Billion.
An e-gift card is a prepaid card with a specific amount of money on it that may be used to buy products online or in stores, depending on the store. It is sent electronically, commonly through email or mobile apps, and comes with a special code that may be used at checkout to retrieve the value of the gift card. They don't need to use normal plastic cards anymore because these cards may be personalized with special patterns, messages, or photos to make the gift even more special. Digital gift cards are quite handy because they are easy to buy, send, and spend. They can use them at different stores or groups of stores, as well as can often check the balance online.
To stop fraud, it might use security measures like PINs or passwords. Users can utilize the card's value to buy things by inputting the code or clicking on a link that was provided to their email. People who buy digital gift cards pick the store and the value of the card, enter the recipient's contact information, then pay. After one buy the card, it is mailed to the person via email. They can use the digital code or barcode to get their money back online or in person at a business. The buyer can choose card themes that complement the occasion and write personal messages to make the present even more special.
Key Trends & Drivers
Rapid growth of e-commerce & online shopping: The increasing online shopping is one of the major factors drive the industry growth. They are easy to use, flexible, and digital while purchasing product online. Digital gift cards are a smart way for stores to market themselves and get customers to come back, stay loyal, and buy from them again. They also allow for customization, social sharing, and participation in incentive programs. These features are appealing to younger groups like Millennials and Generation Z, who prefer cashless, mobile-friendly, and customizable gift options. In addition, the rise of mobile wallets, digital payment systems, and contactless transactions in online shopping has made digital gift cards more popular.
Rise in corporate gifting, loyalty programmes and incentives: The increasing corporate gifting, loyalty programmes and incentives drives the industry growth. They increasingly popular with businesses as a flexible and cost-effective tool to reward employees, acknowledge clients, and conduct incentive programs. This keeps workers motivated and customers coming back. These cards are wonderful for gifting as compared to real gifting since it is sent quickly to the number of people at once. Thus, the aforementioned facts drive the industry growth.
Challenges
Redemption & inactive balance issues: The redemption and inactive balance issue poses a major challenge to the industry growth. The population find hard or forget to use their cards due to this issue. When customers have "breakage," or lingering balances, they are unhappy and less willing to buy or offer items in the future, hampering the industry expansion.
Regulatory & compliance complexities: Regulatory and compliance complexity posing a challenge to the industry growth as the legal system varies in different countries or state. They have different rules on protecting consumers, preventing fraud, keeping data private, and dealing with unclaimed property. This means that businesses have to follow more rules, which can make things more complicated and cost more. For instance, Maryland, New Jersey, and Delaware are just a few states that have put in place special packaging, disclosure, and employee training rules to stop gift card fraud and promote consumer openness.
Opportunities
Rising partnership: The growing partnership is expected to offer a potential opportunity to the market growth over the forecast period. For instance, in November 2025, Klarna, a worldwide digital bank and flexible payments provider, has teamed up with Blackhawk Network (BHN), a leading global provider of branded payment solutions, to provide people even more alternatives and flexibility when buying gift cards, just in time for the holidays. Gift cards are still the most popular holiday gift in the US, and the market is predicted to reach $447 billion by 2025. Klarna's first appearance on Giftcards.com and with BHN's partner firms places flexible payments at the center of the Christmas season, giving millions of people new methods to buy, give, and pay just in time for the busiest gift-giving season.
Growth in developing market: The growing adoption in developing area is one of the major drivers for the market due to fast technological adoption like rollout of 5G networks and fast adoption of smartphones. Additionally, increasing numbers of individuals in China, India, and parts of the Middle East and Africa are using e-commerce because the internet is growing better, governments are making it easier to pay online, and people have more money to spend. These things make now a great opportunity for digital gift cards.
Closed Loop: The closed loop segment dominates the market. Closed loop gift cards encourage customers to buy from the same store again and again, which helps promote brand loyalty and consumer engagement. Adding these gift cards to mobile wallets and digital platforms makes them easier to use, so one can buy things quickly and easily redeem them. This fits with the trend of more and more retail and e-commerce going digital. AI can make things more personal, and blockchain can make things safer. These are two examples of how technology can make things better for users and build trust, which helps the industry grow.
Open Loop: The open loop segment is growing at a rapid pace. The main things that are driving this growth are more people using digital payments, more people wanting flexible gift options, and e-commerce platforms reaching more people. Open loop gift cards are different from closed loop cards in that they are branded by major payment networks like Visa, Mastercard, and American Express. They can be used at a wide range of companies and service providers. Customers that value variety and ease will like this flexibility.
By Application
Consumer Goods: The consumer goods dominate the market over the projected period. The industry is growing since larger numbers of individuals are using digital payment methods, e-commerce platforms are becoming more popular, and people want gifts that are unique and easy to give.
Health and Wellness: The health and wellness are growing at a significant rate driven by an increasing consumer focus on healthy lifestyles.
Restaurants and Bars: The restaurants and bars segment capture the largest market share due to the increasing consumer demand for convenient and contactless payment options.
Travel and Tourism: The travel and tourism segment is growing significantly. The industry is growing since larger numbers of individuals are using digital payment methods, e-commerce platforms are becoming more popular, and people want gifts that are unique and easy to give.
Others: The others segment including consumer electronics, convenience stores, entertainment (movies, gaming), subscription services, corporate incentives, and charity donations.
By Distribution Channel
Online: The online segment dominates the market driven by expanding e-commerce adoption, increasing smartphone penetration, and consumer preference for convenient, instant gifting solutions.
Offline: The offline is growing at a rapid pace. Supermarkets, department stores, retail chains, and convenience stores all help offline sales a lot by offering gift cards as part of sales promotions, discounts, and packaged offers dependent on how much one buy.
Report Scope
Feature of the Report
Details
Market Size in 2025
USD 510 Billion
Projected Market Size in 2034
USD 1596 Billion
Market Size in 2024
USD 450 Billion
CAGR Growth Rate
13.5% CAGR
Base Year
2024
Forecast Period
2025-2034
Key Segment
By Card Type, Application, Distribution Channel and Region
Report Coverage
Revenue Estimation and Forecast, Company Profile, Competitive Landscape, Growth Factors and Recent Trends
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America
Buying Options
Request tailored purchasing options to fulfil your requirements for research.
Regional Analysis
The regional market is divided into North America, Europe, Asia-Pacific, and LAMEA. Here is a brief overview of each region:
North America: North America dominates the market. This region has the largest share of the global digital gift card market because it has a well-established e-commerce ecosystem, a lot of people use smartphones, and people like to pay quickly and without touching anything. The COVID-19 pandemic made more people use technology, which led to more people using digital gift cards.
Europe: Europe capture the largest revenue share. The growth is driven by increasing consumer demand for convenient, personalized gifting solutions, the rise of e-commerce, and widespread adoption of digital payments integrated with mobile wallets.
Asia-Pacific: The Asia Pacific is growing at the fastest rate. This is attributed to the growing e-commerce industry and increasing trends of gifting. Furthermore, the rising internet penetration in the area florish the industry growth.
LAMEA: The LAMEA area, which includes Latin America, the Middle East, and Africa, is growing significantly over the forecast period. The rising investment in advanced technology and growing adoption of smartphones.
Key Developments
The key players operate in the market adopted several strategies including product launch, innovation, merger & acquisition, investment and others. Some of the notable developments are:
In March 2025, Klarna, the AI-powered global payments network and shopping assistant, has partnered with Blackhawk Network (BHN), a leading global branded payments provider, to expand its Gift Card Store into Germany, Italy, and The Netherlands.
In November 2024, The Blackhawk Network has entered the digital card space with the launch of Visa- and Mastercard-branded e-gift cards that can be used in-store and online. The launch builds on consumers’ growing preferences for QR-code and tap-to-pay technology, the prepaid card company says, as both technologies help streamline the payment process and help reduce the risk of fraud by encrypting card numbers. The cards are being issued through Pathward N.A., a Sioux Falls, South Dakota-based bank.
Leading Players
The Digital Gift Card market is highly competitive, with a large number of service providers globally. Some of the key players in the market include:
What is the major challenge for the digital gift card market growth?
The digital gift card market is hampered by Fraud, security breaches & cyber-threats.
What are the drivers for the digital gift card market growth?
The digital gift card market is being driven by several factor such as increasing internet penetration, increasing trends of gifting culture and rising e-commerce.
Who are the major players in the digital gift card market?
The major players are Blackhawk Network, InComm Payments LLC, Loop Commerce, Inc., PayPal Holdings, Inc., Amazon.com, Inc., Apple Inc., Target Brands, Inc., Walmart, Fiserv, Inc., NGC US, LLC, Think Walnut, Unified Incentives Services Private Limited, 99Gift, LoyLap and PassKit, Inc.
Which region is expected to grow at the fastest CAGR for the digital gift card market?
The Asia Pacific is expected to grow at the highest CAGR during the forecast period.
Which region is expected to dominate the digital gift card market?
North America is expected to dominate the digital gift card market during the forecast period.
What will be the valuation of the digital gift card market in 2034?
The digital gift card market is anticipated to reach US$ 1596 billion by 2034 growing at a CAGR of 13.5% from 2025 to 2034.
At what rate the digital gift card market is expected to grow?
The digital gift card market is expected to record a CAGR of 13.5% during the forecast period growing from USD 450 billion in 2024.
Ayush Kadam is a Senior Market Research Analyst at Custom Market Insights, with over seven years of experience in syndicated and custom market research. He specializes in market sizing, competitive intelligence, industry trends, forecasting, and strategic insights, helping clients turn complex data into actionable business decisions.
