Gift Card Market Intelligence

The rapid adoption of technology and online shopping has driven the consumer's shift towards gift cards, and as a result, the payment instrument has reached a wider demographic across the Asia Pacific region. With a greater focus on practicality, convenience, and power of choice, gift cards are projected to further experience an increase in demand in 2023.

In India, there has been a substantial shift in the gift card market, with the share of consumers buying the payment tool rising rapidly in Tier II and III cities. In Australia, the soaring cost of living has driven the popularity of gift cards among consumers in 2022, and the trend is projected to further continue over the next 12 months. In China, government entities are using gift cards as an incentive tool to boost the sales of housing units and revive the struggling construction industry.

In Europe, the cost-of-living crisis is resulting in a dramatic shift in how consumers purchase and use gift cards. Many across the region are seeking to leverage gift card promotions, including bonus card value and discounts, to combat rising inflation and product prices. At a time when consumer discretionary spending is constrained, having a substantial impact on retail, leisure, and hospitality businesses, brands that can assist consumers in getting more value through gift cards can support their consumer retention and revenue growth.

In 2023, digital gift cards are expected to gain further ground than physical gift cards. Furthermore, the trend of self-gifting is also projected to gain increasing traction among consumers across Europe, amid the soaring cost of living and surging inflation. These trends will keep creating business opportunities, especially for brands in the retail, restaurant, and entertainment segment. Brands in the segment can use gift cards as an instrument to build loyalty, drive consumer footfall, and boost sales.

Along with retail brands, corporates are also increasing their usage of gift cards to boost employee engagement, incentivize good work, and combat the soaring prices of petrol and diesel. In Africa, for instance, businesses have turned to gift cards from hampers during the 2022 festive season due to rising delivery costs. The trend is much higher among businesses in Nigeria and is projected to further continue over the next 12 months, as inflation levels remain elevated across the African market.

Furthermore, as more businesses turn to gift cards, to incentivize and reward their employees, digital gift cards will also keep gaining more ground on physical gift cards globally. The ease and convenience to acquire and deliver digital gift cards over physical gift cards will keep aiding the gift card industry's growth over the next five years.

The European gift card industry is also projected to receive substantial growth momentum from city officials, especially in the United Kingdom, who are launching gift card programs to alleviate the cost-of-living crisis for consumers and support local businesses in their respective regions. Many innovative gift card programs have been launched throughout 2022 and the trend has further continued in Q1 2023. With inflation still at multi-year highs, PayNXT360 expects more such gift card programs launches throughout 2023.

Furthermore, the growing popularity of cryptocurrencies and digital assets among consumers globally will also drive crypto-linked gift card program launches from the short to medium-term perspective. This will also aid the growth of the gift card industry in the global market over the next five years.