Major players in the digital gift card market are Amazon.com Inc., Apple Inc., Blackhawk Network Holdings Inc., Fiserv Inc., InComm Payments, Loop Commerce Inc., Qwikcilver Solutions Pvt Ltd, PayPal Holdings Inc., Target Brands Inc., Walmart Inc., American Express Company, First Data Corporation, Givex Corporation, and Paytronix Systems Inc.
The global digital gift card market is expected to grow from $ 286.95 billion in 2021 to $ 342.01 billion in 2022 at a compound annual growth rate (CAGR) of 19.2%. The digital gift market is expected to grow to $ 639.90 billion in 2026 at a CAGR of 17%.
The digital gift cards market consists of sales of employee gift card, incentive card, corporate prize card, visa e-gift card, amazon e-gift card, best buy e-gift card, apple e-gift card, google play e-gift card.Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers.
The value of goods in this market includes related services sold by the creators of the goods.
Digital gift cards can be sent to the recipient’s email address and used online or in stores.They are an electronic version of physical gift cards.
Digital gift cards are frequently used in developing strategies to promote businesses, raise brand awareness, cut down on fraud, and draw in new clients. The digital gift card is used as an alternative form of payment for goods and services at a specific store or business store.
North America was the largest region in the digital gift card market in 2021.Asia Pacific is expected to be the fastest-growing region in the forecast period.
The regions covered in the digital gift card market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The market value is defined as the revenues that enterprises gain from goods and/or services sold within the specified market and geography through sales, grants, or donations in terms of currency (in USD ($ ) unless otherwise specified).
The revenues for a specified geography are consumption values – that is, they are revenues generated by organizations in the specified geography within the specified market, irrespective of where they are produced. It does not include revenues from resales either further along the supply chain or as part of other products.
The main types of functional attributes in digital gift cards are open-loop gift cards and closed-loop gift cards.The open-loop gift cards are used by recipients at eateries, retail outlets for clothing, supermarkets, and other places.
They may even be used to cover one-time expenses.Due to the fact that they are compatible with various credit card systems, open-loop gift cards can be used almost anywhere.
The different business types include business to business (B2B) and business to consumer (B2C). It is used in consumer goods, health and wellness, restaurants and bars, travel and tourism, media and entertainment, and other applications.
The surge in awareness of digital payment is expected to propel the growth of the digital gift card market going forward.Digital payments are payments, made via digital or internet channels without the exchange of actual money.
The gift cards are quickly purchased and used at critical businesses including grocery stores and online-only retailers as a mode of digital and contactless payment option.Due to the simplicity of sending and using digital gift cards as a contactless payment method, their popularity has surged.
For instance, according to the report published by the Ministry of Electronics & IT, an Indian-based executive agency, digital payment transactions have increased significantly over the past four years, from 3,134 crores ($ 3.96 Million) in FY 2018–19 to 5,554 crores ($ 7.02 Million) in FY 2020–21. As of February, 2022, there have been 7422 crores ($ 9.38 million) reported digital transactions during the current fiscal year, or FY 2021–2022. Furthermore, according to Payments Cards & Mobile, a UK based-based payments industry magazine, in 2021, 82% of Americans are using digital payments, in-store checkout using a mobile phone and/or QR code, and browser-based or in-app internet transactions. Therefore, the surge in awareness of digital payments is driving the growth of the digital gift card market.
Product innovation is the key trend in gaining popularity in the digital gift card market.Major companies operating in the market are introducing new technologies such as allowing customers to trade cryptocurrency into their favourite retailers and tracking sites to ensure cards don’t go missing.
For instance, in November 2021, Cross Tower, a US-based trading platform and digital asset investment company, launched a digital gift card feature based on cryptocurrencies for its Indian users, enabling them to send and gift cryptocurrencies of their choice.Indian users can personalize a gift card by adding their preferred cryptocurrency from their Cross Tower wallet, to generate a unique card that is ready for sharing.
This original cryptocurrency gift card is available as a voucher that can be shared via email, social media, or by sharing the link directly, and its value can range from $ 1.25 (INR 100) to $ 125.944 (INR 10,000).
In November 2020, Blackhawk Network, a US-based company involved in the prepaid, gift card, and payments industry acquired National Gift Card for an undisclosed amount.This deal is expected to help Blackhawk Network to increase its presence in the gift card and prepaid card markets and add the fulfilment capabilities of the National Gift Card.
With the acquisition, Blackhawk has also expanded its services to include full program management, fulfilment, international retail, and business-to-business distribution, making it the go-to source worldwide for innovative, reward-based incentive programs of any size. National Gift Card is a US-based provider of mobile payments and gift card technology.
The countries covered in the digital gift card market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.
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