Gift Cards Segmentation
Card Type (Closed-loop, Open-loop)
Closed-loop segment is predicted to account for more than 64% gift cards market share by the end of 2037. Significant growth in the revenue share is anticipated as a result of the impact on brand recognition. Closed-loop gift cards ensure that gift card recipients return to the business to use them, which is profitable for businesses because they can only be used at one location or under one corporate brand. In addition, to help stop fraud and unauthorized use, advanced security features like magnetic stripes, PINs, or special activation codes are generally included.
Moreover, a lot of retailers allow customers to link or register their gift cards with online accounts, giving them the ability to monitor transactions, check their balance, and report issues right away. The World Bank published a report in 2022 estimating that about 2/3rd of global adults now receive and make digital payments which is an increase of 22% to cross 57% from 2014 to 2021. Growth in this sector will boost the digital experience platform value in the near future.
End use (Retail Establishment, Corporate Institutions)
Retail establishment segment in the gift cards market is expected to register significant growth till 2037. This tremendous gain is credited to the large customer base coupled with the well-known brands that are common among retail enterprises. Gift cards from big retail chains, department stores, and specialty stores are set to be more valuable as they are well-known brands. The National Retail Federation shared their forecast about annual retail sales for 2024, it is estimated that retail sales will have a growth rate of more than 2.5% with a size of about USD 5.26 trillion as compared to USD 5.1 trillion in 2023.
Additionally, consumers who are familiar with these well-known brands and believe in their products & services and frequently prefer them to favor giving or receiving gift cards from these companies.
Our in-depth analysis of the global market includes the following segments:
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