Gift Cards & Incentive Cards: Deep Dive into Market Dynamics and Consumer Behaviour

What are the Current Market Dynamics?

The landscape for gift and incentive cards has recently observed significant shifts, with both sectors expanding in capacity, primarily driven by changing consumer preferences and technological advancements. In an increasingly virtual world where convenience, flexibility, and instant gratification are the norm, gift and incentive cards are quickly replacing traditional forms of gifting or rewarding. The growth trajectory of these markets can also be attributed to seasonal offerings, leveraging festivals, holidays, and special occasions.

Why are these Changes Occurring?

Several factors contribute to this evolution within the gift and incentive card segment. Firstly, the surge in e-commerce and online shopping has paved the way for virtual card platforms, making gifting and rewards a virtually instantaneous process. Secondly, a growing corporate culture has allied with investment in HR practices, leading to an increase in demand for incentive cards as a popular employee appreciation tool. Finally, consumer behaviour has adapted, in part, due to the contactless solutions necessitated by recent global events.

How is Consumer Behaviour Shaped?

Consumer behaviour has adapted primarily to embrace mobility, convenience and personalisation. As these prepaid solutions can cater to these consumer needs while offering a wide array of brand choices, they are finding increasing acceptance among consumers. Moreover, the convenience of gifting and incentives offered via email or SMS is something consumers continue to value, particularly those regarded as digital natives'. There is a growing trend towards an all-digital world, and gift and incentive cards are a part of this evolutionary process.