How will the gift card evolve over the next few years?
Despite economic uncertainty, the gift card market continues to grow at a steady pace. Driven by digitalization and the increasing adoption of e-gift cards, the segment is experiencing an average annual growth rate of 7.7% and is expected to reach $607 billion by 2032.
Far beyond a simple transactional tool, gift cards are becoming a strategic asset for brands, seamlessly integrating into omnichannel strategies and loyalty programs. Let’s explore the key trends that will shape the industry in the years ahead.
1. The acceleration of digitalization: the rise of e-gift cards
While physical gift cards still dominate in Europe, the transition to e-gift cards is now inevitable. In the United States, e-gift cards already account for 40% of sales, while in the United Kingdom, their share has reached 52%, growing at an annual rate of 17.1%. Adoption is also on the rise in France and Germany, fueled by integration into mobile wallets and enhanced ease of use. In the United Arab Emirates (UAE), an impressive 93% of gift cards are already digital, supported by the rapid expansion of mobile payments.
This shift aligns with evolving consumer expectations:
- Enhanced customer experience – instant delivery, personalization, and elimination of physical constraints.
- Reduced logistical costs for retailers.
- Stronger environmental commitment, as digital gift cards are perceived as a more sustainable alternative.
The digitalization of the market is also driving explosive growth in the B2B sector. By eliminating logistical barriers, gift cards are increasingly used for corporate incentive programs, employee rewards, and cashback initiatives. Companies and employee representative committees (CSEs) see them as an effective tool to motivate employees and enhance workplace engagement.Additionally, the adoption of digital gift cards simplifies their integration into loyalty programs, allowing customers to convert their points into instant vouchers, redeemable both in-store and online.
2. Strengthened omnichannel experience for seamless usage
Consumers today expect a frictionless shopping experience across all channels. More than 53% of gift card users want the flexibility to redeem them both online and in-store, reflecting a growing demand for a consistent and adaptable purchasing journey.
In response, many retailers are adopting omnichannel strategies, integrating gift cards into web-to-store experiences and click-and-collect services to ensure seamless usability across different touchpoints.
3. The rise of B2B: toward corporate market dominance
The B2B segment currently accounts for two-thirds of gift card program revenues, and this share could surpass 70-80% in the coming years.
Why is B2B Gaining Momentum?
- Companies and employee committees (CSEs) are increasingly using gift cards as a tool for motivation and engagement.
- Incentive and loyalty platforms are seeking single-brand gift cards to expand their offerings.
- API integration is becoming the standard – the majority of distributors prefer automated solutions to efficiently manage gift card transactions. APIs facilitate large-scale distribution while reducing fraud risks and transactional errors.
4. Personalization and the rise of experiential gifting
Consumers are now looking for more engaging and tailored gift card options. 67% of users want to personalize their gift cards with a message, video, or photo, emphasizing the growing demand for customization.Two major trends are emerging:
- Thematic gift cards (for travel, subscriptions, wellness) are booming, especially in the United Kingdom (+17.7%).
- Shared gifting is becoming a key marketing tool – brands are testing features that allow multiple people to contribute to a gift card, creating a unique and shared gifting experience.
5. "self-use": gift cards as a payment method
Once perceived solely as a gifting tool, gift cards are now increasingly being used as a strategic payment method. In the United States, 59% of consumers purchase gift cards for themselves, a trend also seen among 47% of British shoppers. This shift is gaining momentum in France as well, particularly as consumers take advantage of exclusive discounts associated with gift cards.
Retailers are encouraging this behavior by offering attractive promotions, such as buying a €50 gift card for €40, incentivizing consumers to use gift cards as a budgeting tool for their everyday purchases.
6. Security & regulation: stricter frameworks ahead
With the increasing digitalization of gift cards, fraud risks are rising. To counteract this, brands are strengthening transaction security through:
- Biometric authentication (fingerprint and facial recognition).
- Blockchain technology to track and authenticate transactions.
- Stricter regulations in Europe to combat fraud and money laundering, including caps on gift card values under certain conditions.
7. Gift cards as "branded currency"
More and more retailers are leveraging gift cards as a customer acquisition and loyalty tool. No longer just a store credit alternative, gift cards are becoming a fully integrated marketing asset, woven into customer engagement strategies.
- Decathlon allows customers to convert loyalty points into gift cards, ensuring their continued use within the brand’s ecosystem.
- Kiabi incorporates gift cards into its community rewards program, using them as incentives for highly engaged members.
- Zalando places gift cards at the heart of its acquisition and retention strategy, driving repeat purchases.
With the rise of artificial intelligence and social listening, brands will soon be able to adjust their gift card offerings based on consumer purchasing habits and preferences, making them even more powerful and strategic.
8. A rapidly expanding market in Asia and the Middle East
While the United States remains the dominant player in the gift card industry, Europe is catching up, and Asia is emerging as the new growth frontier.
- Gifting culture is deeply embedded in Asian societies, paving the way for mass adoption of e-gift cards.
- Mobile wallets are ubiquitous, accelerating the digital transition across the region.
At the same time, the United Arab Emirates (UAE) is experiencing exceptional growth (+9.3% annually), driven by advanced digitalization and a strong adoption of gift cards in B2B transactions.
9. Security & fraud prevention: a critical challenge for gift cards
As the gift card market expands, fraud risks are escalating, particularly in the digital segment.
In the United States, certain states, including New York, now require merchants to display anti-fraud warnings to alert consumers (Source: DOS NY, 2023). The Federal Trade Commission (FTC) reports thousands of scams involving gift cards each year, often used as fraudulent payment methods in phone and online scams (Source: FTC, 2023).
Digital gift cards are especially vulnerable to account hacking and code theft. To counter these risks, brands must:
- Track IP addresses accessing gift cards.
- Analyze suspicious behaviors to detect potential fraud.
- Strengthen user authentication measures.
High-tech products—which are easily resold—are among the most targeted categories for fraudulent transactions.Emerging security solutions include:
- Unique QR codes and NFC chips for authenticating each gift card and preventing duplication fraud.
Rather than slowing down the growth of gift cards, these risks call for a proactive approach. Investing in advanced monitoring systems, consumer awareness campaigns, and secure distribution channels is essential to maintain trust and growth in the market.
Gift cards are no longer just store credits—they have evolved into a key driver of acquisition, loyalty, and customer engagement.
· Digitalization and omnichannel strategies are transforming gift card usage.
· B2B is the primary growth engine of the market.
· Experiential and personalized gift cards are gaining popularity among consumers.
· "Self-use" is reshaping perceptions, turning gift cards into a prepaid payment method.
· Emerging markets like Asia and the UAE present significant new opportunities.
· Strengthening gift card security is critical to sustaining trust and adoption.
Retailers and brands that anticipate these trends and integrate gift cards into their marketing strategies will gain a major competitive advantage in this rapidly expanding market.
