Dublin, Jan. 22, 2025 (GLOBE NEWSWIRE) -- The "North America Gift Card Market Outlook, 2029" report has been added to ResearchAndMarkets.com's offering.
The North America Gift Card market is anticipated to add to more than USD 214.07 billion by 2024-2029. The market is shaped by significant technological advancements and evolving consumer preferences. The increasing use of digital gift cards, spurred by the rise of e-commerce and mobile payment platforms, has emerged as a defining trend. Consumers appreciate the convenience of sending and receiving gift cards online, aligning with the growing preference for contactless and digital-first solutions.
Government regulations play a crucial role in ensuring consumer protection and preventing fraud in the gift card market. Rules surrounding expiration dates, inactivity fees, and redemption rights are carefully enforced to promote fair practices. These policies enhance consumer trust while fostering a transparent market environment. Technological innovations, such as blockchain integration, are transforming the market. Blockchain ensures secure transactions and reduces the risk of fraud, particularly in digital gift cards. The incorporation of AI and data analytics is enabling businesses to offer personalized gift card options, driving engagement and loyalty.
Several prominent companies dominate the market, leveraging their expansive networks and innovative offerings. Retail giants, payment networks, and e-commerce platforms are key players, capitalizing on their brand reach and technological capabilities to capture market share. Their dominance is further strengthened by strategic partnerships and collaborations with retailers, banks, and technology providers. This dynamic environment, fueled by technological advancements and supported by robust regulations, positions the North America gift card market as a critical component of the region's retail and digital economy.
Market Drivers
- High Demand for Flexible and Customizable Gifting Options: The growing preference for flexible gifting solutions is a major driver in the North America gift card market. Gift cards offer recipients the freedom to choose their desired products or services, making them a popular choice for personal and corporate gifting. Customization options, such as adding personalized messages or designs, further enhance their appeal. Seasonal events, holidays, and milestone celebrations fuel demand, as consumers increasingly view gift cards as convenient and thoughtful gifts. Businesses also benefit by using gift cards for customer retention and rewards programs, bolstering market growth across diverse consumer demographics.
- Increasing Adoption of E-Commerce and Digital Payment Platforms: The surge in e-commerce and digital payments is propelling the growth of the gift card market in North America. Online shopping platforms frequently integrate gift cards as a payment or promotional tool, encouraging their widespread use. Digital gift cards, which can be instantly delivered via email or mobile apps, align perfectly with the region's preference for convenience and speed. Additionally, advancements in mobile wallets and payment apps allow seamless redemption, ensuring a user-friendly experience. These developments are particularly significant among tech-savvy consumers, driving the digital transformation of the traditional gift card market.
Market Challenges
- Risk of Fraud and Security Concerns: The increasing popularity of digital gift cards in North America has heightened concerns about fraud and security breaches. Cybercriminals often target digital transactions, including gift card codes, leading to unauthorized usage or losses for consumers. Businesses must invest significantly in secure technologies and fraud prevention measures, which can be resource-intensive. Additionally, phishing scams and counterfeit gift cards diminish consumer trust in the market. Addressing these challenges requires constant vigilance, advanced encryption technologies, and awareness campaigns, all of which add complexity to the market's growth.
- Lack of Redemption Awareness and Usage Constraints: Many consumers are unaware of the terms and conditions associated with gift card redemption, resulting in unused or partially used cards. In some cases, redemption limitations, such as restrictions to specific stores or expiration dates, discourage their use. For businesses, this represents missed opportunities for customer engagement and repeat purchases. Bridging this gap requires better communication about redemption policies and enhanced flexibility in card usage. However, achieving this balance can be challenging, particularly for smaller businesses without extensive resources for consumer education and policy adjustments.
Market Trends
- Rising Popularity of Corporate Gift Cards: Corporate gifting is emerging as a significant trend in the North America gift card market. Companies are increasingly using gift cards to reward employees, incentivize customers, and enhance brand loyalty. These cards provide a versatile and cost-effective solution for businesses seeking to build stronger relationships with stakeholders. The customization options available for corporate gift cards, including branded designs and tailored messages, add to their appeal. This trend is further supported by the rise of remote work, where gift cards offer a practical way to recognize employee contributions across dispersed teams.
- Emergence of Sustainable and Eco-Friendly Gift Cards: Sustainability is becoming a key focus in the North America gift card market, with consumers and businesses seeking eco-friendly options. Biodegradable or recyclable physical gift cards, as well as entirely digital cards, are gaining traction. Companies are promoting these alternatives as part of their commitment to environmental responsibility, resonating with eco-conscious consumers. Additionally, sustainable gift cards often come with certifications or transparency about materials, further enhancing their appeal. This trend highlights a shift toward greener practices, aligning with broader consumer and corporate sustainability goals across the region.
Market Trends by Segment
- Closed-loop gift cards are a leading segment in the North America gift card market due to their strong appeal among retailers and consumers alike
- Retail establishments are the leading end-user segment in the North America gift card market
- The United States (US) dominates the North America gift card market due to its robust consumer economy, advanced retail sector
Aspects Covered in the Report
- Gift Card Market with its value and forecast along with its segments
- Region & country wise Gift Card market analysis
- Application wise Gift Card distribution
- Various drivers and challenges
- On-going trends and developments
- Top profiled companies
- Strategic recommendations
Key Topics Covered
1. Executive Summary
2. Research Methodology
2.1. Secondary Research
2.2. Primary Data Collection
2.3. Market Formation & Validation
2.4. Report Writing, Quality Check & Delivery
3. Market Structure
3.1. Market Considerate
3.2. Assumptions
3.3. Limitations
3.4. Abbreviations
3.5. Sources
3.6. Definitions
4. Economic /Demographic Snapshot
5. Global Gift Card Market Outlook
5.1. Market Size By Value
5.2. Market Share By Region
5.3. Market Size and Forecast, By Card Types
5.4. Market Size and Forecast, By Sales Channel
5.5. Market Size and Forecast, By End Users
5.6. Market Size and Forecast, By Price Range
6. Market Dynamics
6.1. Market Drivers & Opportunities
6.2. Market Restraints & Challenges
6.3. Market Trends
6.4. COVID-19 Effect
6.5. Supply chain Analysis
6.6. Policy & Regulatory Framework
6.7. Industry Experts Views
7. North America Gift Card Market Outlook
7.1. Market Size By Value
7.2. Market Share By Country
7.3. Market Size and Forecast, By Card Types
7.4. Market Size and Forecast, By Sales Channel
7.5. Market Size and Forecast, By End Users
7.6. United States Gift Card Market Outlook
7.7. Canada Gift Card Market Outlook
7.8. Mexico Gift Card Market Outlook
8. Competitive Landscape
8.1. Competitive Dashboard
8.2. Business Strategies Adopted by Key Players
8.3. Key Players Market Positioning Matrix
8.4. Porter's Five Forces
8.5. Company Profiles
8.5.1. Amazon.com, Inc.
8.5.1.1. Company Snapshot
8.5.1.2. Company Overview
8.5.1.3. Financial Highlights
8.5.1.4. Geographic Insights
8.5.1.5. Business Segment & Performance
8.5.1.6. Product Portfolio
8.5.1.7. Key Executives
8.5.1.8. Strategic Moves & Developments
8.5.2. Fiserv, Inc.
8.5.3. Blackhawk Network Holdings, Inc.
8.5.4. Walmart Inc.
8.5.5. Starbucks Corporation
8.5.6. American Express Company
8.5.7. PayPal, Inc.
8.5.8. Givex Corp.
8.5.9. Apple Inc.
8.5.10. Interactive Communications International, Inc.
8.5.11. Etsy
8.5.12. Visa Inc.
9. Strategic Recommendations
10. Annexure
For more information about this report visit https://www.researchandmarkets.com/r/ca4xvy
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