Key Findings

• Digital gift cards, or e-gift cards, are prepaid stored-value money cards that are delivered electronically and can be redeemed for purchases online or in-store.

• The market is driven by rapid retail digitalization, increased smartphone penetration, and the growing popularity of contactless and cashless payment methods.

• Major categories include closed-loop gift cards (redeemable at specific merchants) and open-loop cards (usable across multiple retailers), both of which are seeing rising demand.

• Integration with mobile wallets, real-time delivery via SMS or email, and enhanced personalization features have made digital gift cards more appealing to consumers.

• Businesses are increasingly adopting digital gift cards as part of loyalty programs, employee incentives, and customer acquisition strategies.

• Seasonal and occasion-based gifting—especially during holidays, birthdays, and festivals—remains a strong revenue generator across global markets.

• Emerging markets such as India, Southeast Asia, and Latin America are witnessing robust adoption due to expanding e-commerce ecosystems and fintech growth.

• Leading players include Amazon, Apple, Google, Walmart, PayPal, Starbucks, and Target.

• Blockchain-based gift card platforms are emerging to tackle issues like fraud, expiration, and limited interoperability.

• Digital gift card volumes surged post-COVID-19, and the market has retained momentum due to changing consumer preferences and retail innovation.

Market Overview

The digital gift card market represents a modern evolution in the prepaid and stored-value segment, bridging convenience, flexibility, and digital integration. These cards are issued electronically, either through mobile apps, emails, or messaging platforms, and can be redeemed seamlessly across various digital and physical retail environments.

Consumers are increasingly shifting toward digital gift cards for personal gifting, while businesses are leveraging them to engage employees, reward loyalty, and stimulate sales. Their advantages over physical gift cards include instant delivery, reduced production and logistics costs, and the ability to embed rich media and promotional content.

Retailers and fintech companies are now embedding digital gift cards into mobile banking apps, e-commerce platforms, and messaging apps to create frictionless user experiences. The market is also being shaped by AI-powered personalization engines, omnichannel marketing, and the expansion of cross-border gifting and remittance solutions.

Digital Gift Card Market Size and Forecast

The global digital gift card market was valued at USD 35.6 billion in 2024 and is projected to reach USD 98.7 billion by 2031, growing at a CAGR of 15.7% during the forecast period.

The surge is attributed to the growth of online retail, mobile-first financial services, and digitally enabled customer loyalty programs. Retailers are capitalizing on impulse gifting and seasonal demand, while enterprises are using gift cards for internal and external reward schemes. Advanced analytics and targeting strategies are further enhancing conversion rates and user retention through personalized offers.

Moreover, the adoption of open-loop cards by fintech platforms and neobanks is adding new layers of flexibility for consumers, enabling them to spend digital cards like cash, often with added benefits such as cashback or discounts. As competition intensifies, providers are enhancing security, anti-fraud measures, and customer engagement features.

Future Outlook

The digital gift card market is expected to evolve into a key node in the consumer payments and engagement ecosystem. With increasing integration into super-apps, banking-as-a-service platforms, and loyalty ecosystems, digital gift cards will become central to customer experience strategies.

Technologies like blockchain are poised to bring transparency, security, and programmability to gift cards, allowing traceable, transferable, and self-expiring tokens. Additionally, AI and machine learning will further enhance predictive gifting models, offer recommendations, and enable dynamic value adjustments based on consumer behavior.

Cross-border digital gifting is also set to grow, especially among migrant populations, with real-time issuance and multi-currency support. Moreover, sustainability-conscious consumers are preferring digital gift cards over physical options due to the lower carbon footprint.

Digital Gift Card Market Trends

• Rise of Mobile Wallet Integration
  Digital gift cards are increasingly being integrated into mobile wallets like Apple Pay, Google Wallet, Paytm, and others. This allows users to store, manage, and redeem gift cards easily while tracking balances in real time. Retailers are also sending gift cards via wallet-compatible links, improving user convenience and engagement.

• Personalized and Themed Gifting Experiences
  The trend of customizing digital gift cards with video messages, animated themes, and personal branding is gaining traction. E-commerce players and fintech apps are leveraging personalization to increase emotional value and improve redemption rates, especially during festive and promotional seasons.

• Business-to-Business (B2B) Adoption Surge
  Enterprises are using digital gift cards for employee recognition, referral programs, and sales incentives. Digital issuance enables easy scalability and tracking, while integrated dashboards allow HR and marketing teams to analyze redemption behavior and optimize campaigns.

• Blockchain and Smart Contract Innovation
  Some startups and platforms are now offering blockchain-based gift cards with enhanced fraud resistance and interoperability. Smart contracts can enforce expiration policies or automatic redirection of unused balances, giving users and merchants more control and transparency.

• Omnichannel Retail Engagement
  Brands are linking their digital gift card systems with point-of-sale (POS), mobile, and online platforms to create seamless omnichannel experiences. Customers can redeem or check balances across touchpoints, and businesses gain unified data to improve customer lifetime value and cross-selling.

Market Growth Drivers

• Growing Digital Commerce Ecosystem
  The global expansion of e-commerce platforms, mobile shopping, and fintech applications is driving the adoption of digital payment tools like gift cards. These instruments offer both convenience and flexibility in payment, appealing to digital-native consumers across regions.

• Demand for Instant and Contactless Gifting
  Post-pandemic consumer preferences have shifted toward instant, touch-free solutions. Digital gift cards eliminate the need for physical handling or delivery, enabling last-minute gifting, even across long distances, with instant fulfillment and customized messaging.

• Retailer Loyalty and Engagement Programs
  Brands are embedding digital gift cards into their loyalty ecosystems as a form of cashback or reward currency. This approach enhances repeat purchase behavior, strengthens brand engagement, and allows customers to gift brand value to others, fueling organic promotion.

• Increased Smartphone and Internet Penetration
  With rising smartphone ownership and access to internet services in emerging economies, digital gifting is becoming more accessible. Market players are localizing interfaces, adding regional payment methods, and targeting these new users with simplified gifting workflows.

• Corporate Gifting and Employee Engagement
  Organizations are replacing traditional gifting methods with digital solutions that are cost-effective, secure, and easily trackable. Gift cards are being integrated into HRMS systems and used for onboarding, employee anniversaries, peer recognition, and sales performance incentives.

Challenges in the Market

• Security and Fraud Risks
  The rise of phishing attacks, unauthorized access, and card balance theft pose a major challenge. Hackers often target weak points in digital gift card issuance or redemption flows, prompting providers to invest heavily in multi-factor authentication and real-time fraud analytics.

• Low Redemption Rates and Unused Balances
  A significant share of issued gift cards go unredeemed, leading to liability concerns for businesses. Users may forget about balances or face compatibility issues across platforms, negatively impacting customer satisfaction and ROI for issuers.

• Platform and Interoperability Fragmentation
  Lack of standardization across issuing platforms, retailers, and payment gateways can limit the usability of digital gift cards. Consumers are sometimes restricted in how or where they can redeem cards, leading to confusion or dissatisfaction.

• Regulatory Compliance and Data Privacy
  Digital gift card issuers must navigate a complex regulatory environment concerning anti-money laundering (AML), data protection (like GDPR), and stored-value product classification. Ensuring compliance across geographies adds legal and operational burdens.

• Market Saturation in Developed Regions
  In markets like North America and Western Europe, high penetration levels may result in slower growth unless innovative features, loyalty tie-ins, or new monetization models are introduced to keep consumers engaged and differentiate offerings.

Digital Gift Card Market Segmentation

By Card Type

• Closed-Loop Gift Cards

• Open-Loop Gift Cards

• Multi-Brand Gift Cards

• Blockchain-based Gift Cards

By Application

• Retail and E-commerce

• Corporate and Employee Rewards

• Travel and Hospitality

• Food and Beverage

• Gaming and Entertainment

• Others (Education, Healthcare)

By End-user

• Individual Consumers

• Small and Medium Enterprises (SMEs)

• Large Enterprises

• Institutions and Government Bodies

By Distribution Channel

• Mobile Apps

• Websites and Email

• Messaging Platforms (WhatsApp, SMS, etc.)

• Digital Wallets

• In-Store Kiosks

By Region

• North America

• Europe

• Asia-Pacific

• Latin America

• Middle East & Africa

Leading Players

• Amazon

• Apple

• Walmart

• Starbucks

• Target

• Google

• PayPal

• Best Buy

• Gyft (First Data)

• Blackhawk Network Holdings

Recent Developments

• Amazon expanded its digital gift card options with new seasonal designs and increased integration into Alexa for voice-based gifting experiences.

• Google launched enhanced Google Play digital gift card features with region-specific offers and improved fraud detection in emerging markets.

• Starbucks rolled out a new gift card management system through its app, allowing customers to reload, personalize, and track usage with advanced analytics.

• PayPal introduced an AI-powered gifting assistant within its mobile app to help users choose, customize, and send digital gift cards based on recipient preferences.

• Blackhawk Network partnered with leading fintech platforms to embed multi-brand digital gift cards into banking-as-a-service ecosystems for seamless distribution.