Digital Gift Card Market By Card Type (Open-Loop, Closed-Loop); By Application (Personal Gifting, Corporate Incentives, Financial Aid Distribution); By End User (Consumers, Enterprises, Nonprofits, Governments); By Geography, Segment Revenue Estimation, Forecast, 2024–2030.

Introduction And Strategic Context

The Global Digital Gift Card Market is on track to expand at a CAGR of 18.8%, reaching an estimated USD 1,407.9 billion by 2030, up from around USD 498.3 billion in 2024, according to Strategic Market Research .

 

This market sits at the intersection of digital commerce, consumer personalization, and corporate incentive strategies. While gift cards may seem like a legacy offering, the shift from plastic to mobile wallets has turned them into a high-frequency, data-rich asset. Platforms from Amazon to Apple Pay, fintechs like Square and Revolut, and even retailers in emerging markets are transforming how digital gift cards are issued, redeemed, and analyzed .

 

What’s driving this evolution? Two things: convenience and flexibility. Whether it’s a consumer buying a last-minute birthday gift or a company rolling out a digital bonus program, gift cards offer an instant and universally accepted value exchange. And unlike loyalty points, they’re cash-equivalent — but with higher margins and customer retention baked in.

 

Globally, more than 65% of B2C digital gifting transactions now happen on mobile devices. In regions like North America and Western Europe, the shift to e-gifting is already mature, but what’s surprising is how quickly it’s scaling in regions like Southeast Asia, the Middle East, and parts of Africa — where smartphone penetration has leapfrogged physical banking.

 

At the same time, corporate demand is exploding. Enterprises are using digital gift cards for everything from employee rewards to customer acquisition. Large tech firms, insurance companies, and even healthcare platforms are deploying e-gifting engines as part of their engagement stack. One HR executive described it as “the currency of appreciation in hybrid work.”

 

On the backend, APIs and branded currency ecosystems are reshaping the economics. Providers like Blackhawk Network and InComm are partnering with retailers to launch multi-brand wallets, while startups are building analytics dashboards that track redemption velocity, breakage rates, and customer conversion triggered by gifting.

 

From a policy standpoint, the landscape is still patchy. In the U.S., states like California and Massachusetts have clear escheatment laws. In Europe, e-money directive compliance is essential. Meanwhile, regulators in Asia-Pacific are starting to view stored value cards as fintech infrastructure — especially in cash-heavy economies transitioning to digital rails.

 

The stakeholder map is growing more diverse. Retailers want new ways to lock in revenue. Consumers expect seamless gifting across platforms. Corporate buyers demand volume discounts, integrations, and data. And tech vendors are looking to embed gift card issuance in CRMs, loyalty platforms, and employee engagement tools.

 

To be honest, this market used to be an afterthought — a holiday season feature. Now, it’s infrastructure. With rising fintech integration, AI-personalized gifting, and borderless issuance, digital gift cards are becoming a quiet but powerful enabler in the future of digital commerce.

 

Market Segmentation And Forecast Scope

The digital gift card market breaks down across four primary dimensions: card type, application, end user, and region. This structure helps capture the full scope of how and where value is created — and who’s driving it.

By Card Type, the market divides into open-loop and closed-loop cards. Open-loop cards, such as those backed by Visa or Mastercard, offer recipients the freedom to spend across any merchant that accepts the network. These are gaining traction for B2B rewards and government disbursement programs. Closed-loop cards, tied to a specific brand like Starbucks or Amazon, still dominate in volume — largely because retailers can offer them with promotional incentives or discounts.

As of 2024, closed-loop cards are estimated to account for over 62% of total digital gift card volume. However, open-loop cards are scaling faster due to their cross-border utility and use in fintech apps.

 

By Application, personal gifting remains the largest segment. Birthdays, holidays, weddings, and graduations drive consistent volume. But what's changed recently is the rise of digital gift cards in corporate and institutional use. Whether it’s marketing rewards, sales incentives, survey participation bonuses, or even research stipends — gift cards have become a standard line item in enterprise budgets.

Also notable is their emerging use in financial inclusion programs. Nonprofits and public sector bodies are issuing digital gift cards to deliver aid or benefits to unbanked populations in regions like Sub-Saharan Africa and rural South Asia.

 

By End User, the key divisions include individual consumers, enterprises, and government or nonprofit organizations. Consumers remain the dominant group, but the enterprise and public sector use cases are catching up fast. Tech companies, HR departments, digital marketing agencies, and even school systems are embedding gift card functionality into their user journeys.

One fast-growing pocket in 2024 is internal employee recognition platforms, where companies offer quarterly digital rewards via multi-brand gift cards integrated directly into Slack or Microsoft Teams.

 

By Region, North America continues to lead in overall market size, driven by established infrastructure and deep consumer familiarity. Europe follows closely, particularly in markets like the UK, Germany, and the Nordics. But the fastest growth rates are coming from Asia-Pacific, where digital wallets like GrabPay, PhonePe, and Alipay are integrating gift card options for younger, mobile-first consumers.

 

There’s also white space in Latin America and parts of the Middle East, where retail digitization is expanding and younger populations are engaging with gift cards in social commerce settings — like WhatsApp gifting or TikTok store integrations.

For forecasting, this report covers the period 2024 to 2030, using 2023 as the base year and including historical trends from 2018 to 2022. Revenue figures are presented in USD and broken down by segment, region, and major end-user category. While the bulk of market value still centers around digital consumer-to-consumer (C2C) gifting, the enterprise and cross-border corridors are expected to be the most strategic growth engines through 2030.

 

Market Trends And Innovation Landscape

Digital gift cards have evolved from static stored-value assets into programmable tools that can be personalized, automated, and tracked across consumer and enterprise ecosystems. The shift isn’t just about going paperless — it’s about embedding gift cards into the broader logic of customer experience, fintech, and digital identity.

 

One of the strongest trends in this space is API-first infrastructure. Modern gift card platforms now offer developer-friendly toolkits that allow retailers, HR software vendors, and e-commerce platforms to issue, redeem, and track digital gift cards in real time. This is enabling micro-level automation — like sending a $10 reward immediately after a user completes a feedback survey or registers for a webinar.

 

Another area seeing traction is AI-powered personalization. Companies are leveraging machine learning models to suggest the right brand, amount, or format for gifting — especially in B2B campaigns. For example, a SaaS company might tailor gift card incentives by buyer persona, geography, or engagement history — boosting conversion rates without increasing reward spend.

 

We’re also seeing a growing interest in tokenization and blockchain-backed gifting. While still niche, startups in the Web3 space are piloting crypto-denominated gift cards, NFT-based event tickets, and token-gated brand loyalty systems. It’s not yet mainstream, but the infrastructure is being built.

 

On the B2C side, social gifting integrations are redefining user journeys. Consumers can now send gift cards via Instagram DMs, WhatsApp chats, or even within mobile games. Gen Z users are particularly responsive to gifting flows embedded in peer-to-peer platforms — often using them as informal “thank yous ” or digital tips.

 

In the enterprise segment, digital reward orchestration is becoming more sophisticated. Companies no longer just send bulk codes. They’re implementing rules around frequency, denomination, expiration, and redemption insights. One HR platform even allows managers to set monthly “recognition budgets” with automated nudges based on team milestones.

 

There’s also increased demand for eco-conscious gifting formats. Digital-first brands are promoting e-gift cards as a sustainable alternative to plastic. Some platforms now bundle the card with a carbon offset or donation to environmental causes — a subtle shift that aligns with ESG strategies, especially for consumer-facing brands.

 

From a partnerships angle, major developments are unfolding. E-wallet providers are forming alliances with airline reward programs, fitness apps, and subscription boxes to expand redemption catalogs. Gift card platforms are embedding into e-commerce checkouts and loyalty apps — blurring the line between payment method and promotional tool.

 

Industry experts expect that by 2027, nearly 40% of digital gift cards will be delivered in non-email channels — including mobile push, chatbots, and voice assistants.

 

This wave of innovation isn’t just adding features — it’s changing the very utility of gift cards. From static value holders, they’re becoming programmable incentives, embedded into workflows across industries.

 

Competitive Intelligence And Benchmarking

The digital gift card market is shaped by a mix of legacy prepaid network providers, fintech enablers, retail issuers, and API-first startups. Each player occupies a distinct niche — but increasingly, their product lines are overlapping as integrations and use cases expand.

Blackhawk Network remains one of the most entrenched players globally, especially across North America and Europe. Its strength lies in its massive multi-brand catalog and robust distribution across both digital and physical retail. Blackhawk has also doubled down on partnerships with major grocery chains and payment platforms to stay sticky with everyday users.

 

InComm Payments holds a dominant share in closed-loop systems and powers many of the gift card programs offered by large retailers. The company’s emphasis on branded currency ecosystems gives it an edge with merchants looking to lock in customer spend. InComm’s recent focus has shifted toward mobile-first platforms and B2B disbursement engines targeting enterprise clients.

 

Amazon, while technically a retailer, is also a major force in this space. Its gift card program isn’t just a consumer product — it’s a corporate incentives powerhouse. Businesses across the globe rely on Amazon gift cards for lead generation, rewards, and event engagement. The platform benefits from built-in brand trust, instant delivery, and global coverage.

 

Tango Card is a rising player in the API-driven gifting segment. Known for its developer-friendly approach, Tango Card integrates into hundreds of HR tools, customer engagement platforms, and research tools. What makes it stand out is its focus on the enterprise layer — offering analytics, compliance tools, and support for global payouts.

 

Gyft (acquired by First Data, now Fiserv) has positioned itself as a digital gifting app that focuses on mobile users. Its strength lies in consumer-facing UX, allowing users to buy, store, and manage gift cards through a seamless mobile experience. While it caters mostly to the U.S. market, it’s well embedded in the digital wallet ecosystem.

 

Rybbon, now part of BHN Rewards, specializes in integrating gift card functionality into survey tools and marketing automation platforms like HubSpot and Marketo. This is a strategic segment — as digital incentives become standard in research panels, lead nurturing, and customer referrals.

 

Xoxoday is another noteworthy entrant, particularly strong in the Asia-Pacific region. It’s gained traction by offering cross-border incentive delivery and a localized redemption experience. Xoxoday’s integration with enterprise workflows and its ability to manage region-specific catalogs make it an attractive partner for MNCs operating across diverse markets.

 

Overall, competitive advantage in this space is driven by:

• API flexibility and platform compatibility

• Brand catalog size and redemption flexibility

• Global issuance and payout capabilities

• Analytics and compliance features

• UX design and mobile-first deployment

To stay competitive, providers are increasingly moving beyond simple card issuance. They’re bundling features like delayed delivery, redemption insights, automated triggers, and integrations with CRMs, HRIS systems, and loyalty platforms.

The winners in this market won’t just be card issuers — they’ll be infrastructure providers enabling programmable, data-rich gifting across ecosystems.

 

Regional Landscape And Adoption Outlook

The adoption of digital gift cards is playing out at different speeds across global regions — with infrastructure, consumer behavior, mobile penetration, and regulation shaping the dynamics.

North America continues to dominate both in total volume and enterprise use cases. The U.S. remains the world’s most mature market for digital gift cards, with widespread integration into loyalty programs, employee recognition platforms, and B2B marketing campaigns. Canada trails closely behind, particularly in fintech-driven adoption. Major retailers, tech companies, and even universities use gift cards as digital currency for engagement, and mobile wallet compatibility is near-universal.

 

That said, Europe is catching up fast. Countries like the UK, Germany, and the Nordics are experiencing a shift from plastic to digital, driven by sustainability goals and e-commerce growth. In particular, GDPR compliance and e-money license requirements have prompted European issuers to tighten their backend systems. This has opened up demand for plug-and-play gift card APIs that can ensure both compliance and customer experience. In regions like France and the Netherlands, government-approved "employee gift card" programs have gone fully digital — especially since COVID-19.

 

Asia-Pacific is where the fastest growth is happening. The digital gift card market here is largely riding on the back of super apps and mobile payment ecosystems. In countries like India, Indonesia, Vietnam, and the Philippines, platforms such as PhonePe, GCash, and Grab are integrating gift card functionality directly into their payment apps. In China, gift cards are being absorbed into WeChat Pay and Alipay’s loyalty engines — often blurring the line between discount coupons and stored value products.

What’s interesting is how gift cards in APAC are used not just for gifting, but also as credit substitutes in underbanked regions. Retailers offer them as refunds, NGOs use them to distribute aid, and platforms bundle them with digital onboarding campaigns.

 

Latin America presents a mixed picture. Markets like Brazil, Mexico, and Colombia are seeing rapid e-commerce growth, which is driving higher digital gifting activity. However, infrastructure and payment system fragmentation remain a challenge. Gift card providers in this region often need to offer local payout methods, multi- language support, and fraud management tools to stay competitive. Social commerce is also an emerging use case — especially where WhatsApp and Instagram dominate.

 

In the Middle East and Africa, adoption is uneven. In Gulf countries like the UAE and Saudi Arabia, digital gift cards are now a common feature in online retail and hospitality. Luxury gifting, digital gifting for religious holidays, and corporate rewards are becoming normalized. In Africa, the use case is more functional — often as a mobile-friendly payment proxy. Telecom operators and fintechs are the primary drivers here, offering airtime, grocery, or education vouchers in gift card form.

Across all regions, cross-border gifting is still a challenge due to currency restrictions, localization issues, and KYC/AML compliance hurdles. But some providers are addressing this with region-specific catalogs, digital wallets, and local partner networks.

Looking ahead, the regions with the fastest scaling potential are Southeast Asia, Eastern Europe, and the Middle East — all of which are experiencing a convergence of mobile-first users, digital commerce acceleration, and platform infrastructure investments.

 

End-User Dynamics And Use Case

End-user behavior in the digital gift card market has evolved beyond the traditional B2C model. Today, the ecosystem includes consumers, enterprises, nonprofits, educational institutions, and even government agencies — each adopting digital gift cards for very different purposes.

Individual consumers are still the primary volume drivers. Gifting for birthdays, holidays, weddings, and festivals continues to dominate transaction counts. However, the format and channel have changed — with most consumers now choosing mobile delivery over email or printable PDFs. Instant gifting via mobile wallets, social apps, and branded websites has made the experience faster and more seamless. Younger users in particular expect gifting to be as easy as sending a message.

 

Corporate users, on the other hand, treat gift cards as part of their incentive stack. Whether it's HR departments using them for employee appreciation, sales teams rewarding lead conversions, or marketing teams driving engagement in webinars — gift cards now play a key role in internal and external stakeholder engagement. Their simplicity and immediacy make them ideal for high-volume, low-friction rewards.

One illustrative use case: A global SaaS company based in Singapore integrated a digital gift card module into its customer referral engine. When a user referred a friend who completed onboarding, the system automatically sent a $25 gift card (based on the recipient’s location and preferences) through email or mobile. Over a 6-month period, the referral rate tripled, and customer acquisition cost dropped by 18%.

 

Nonprofits and public sector agencies are also emerging as meaningful adopters. In situations where direct cash distribution is challenging — due to KYC concerns or banking limitations — digital gift cards offer a safe, trackable alternative. For instance, NGOs operating in refugee settlements have used digital grocery vouchers as a way to distribute aid while preserving dignity and minimizing fraud.

 

Educational institutions and research firms frequently use gift cards to incentivize survey participation, clinical trial adherence, or research interviews. It’s faster than issuing a check and more appealing to participants, especially in younger demographics.

Then there are platform businesses that offer gifting as a feature. Employee engagement platforms, wellness apps, and loyalty ecosystems now offer digital gift cards as part of their value proposition. This allows users to redeem points or rewards into flexible gift cards — turning internal currency into real-world value.

 

What stands out across all end-user groups is the demand for flexibility and integration. They’re not just buying gift cards — they want to automate delivery, personalize messaging, and track outcomes. Providers that offer APIs, branded delivery experiences, and analytics dashboards are seeing higher retention and larger contract values.

In short, the digital gift card isn’t just a product anymore — it’s infrastructure. Whether for rewarding behavior , engaging users, or delivering aid, end users are treating it as a programmable financial tool.

 

Recent Developments + Opportunities & Restraints

Recent Developments (Last 2 Years)

• Apple expanded its digital gift card program into 12 additional countries in 2023, integrating it directly into the Wallet app — allowing seamless redemption across App Store, iTunes, and Apple retail purchases.

• Tango Card launched an upgraded rewards API in 2024, enabling enterprise clients to issue multi-brand gift cards across 40+ countries with dynamic value adjustments based on recipient location and engagement status.

• Xoxoday entered the U.S. market with localized integrations for Salesforce, Microsoft Teams, and Workday, targeting large enterprise clients in need of automated recognition and gifting infrastructure.

• Amazon Business added bulk digital gift card provisioning for enterprise accounts, allowing HR and procurement teams to allocate gifting budgets across teams with centralized invoice management.

• InComm Payments introduced AI-based fraud detection in its closed-loop gift card engine to reduce redemption fraud and duplicate use in digital channels.

 

Opportunities

• Integration with employee experience platforms : As hybrid work continues, companies are embedding gift cards directly into productivity suites like Slack and Microsoft Teams — opening a long-term opportunity for B2B growth.

• Cross-border gifting infrastructure : Platforms that support multi-currency, tax-compliant digital gifting across regions are well-positioned to serve global enterprises and diaspora populations.

• AI-powered personalization : Demand is rising for AI models that recommend the right card, denomination, and timing based on recipient behavior — improving engagement and reducing breakage.

 

Restraints

• Regulatory complexity in multi-region issuance : Providers operating globally must navigate differing escheatment laws, AML/KYC rules, and digital currency classifications — slowing rollout in regulated markets.

• Rising fraud risk in peer-to-peer gifting : As social gifting gains traction, platforms face challenges in verifying sender identity and preventing scams in real-time delivery.

 

7.1. Report Coverage Table

Report Attribute	Details
Forecast Period	2024 – 2030
Market Size Value in 2024	USD 710.0 Billion
Revenue Forecast in 2030	USD 1,407.9 Billion
Overall Growth Rate	CAGR of 18.8% (2024 – 2030)
Base Year for Estimation	2024
Historical Data	2019 – 2023
Unit	USD Billion, CAGR (2024 – 2030)
Segmentation	By Card Type, By Application, By End User, By Geography
By Card Type	Open-Loop, Closed-Loop
By Application	Personal Gifting, Corporate Incentives, Financial Aid Distribution
By End User	Consumers, Enterprises, Nonprofits, Governments
By Region	North America, Europe, Asia-Pacific, Latin America, Middle East & Africa
Country Scope	U.S., Canada, UK, Germany, China, India, Japan, Brazil, UAE, South Africa
Market Drivers	- Surge in mobile wallet adoption - B2B integration across enterprise platforms - Growing demand for real-time, cross-border gifting infrastructure
Customization Option	Available upon request