February 12, 2021
According to the research report titled ‘Global Gift Cards Market Size study, by Type (Open Loop, Closed Loop) by End User (Retail, Corporate Institutions) and Regional Forecasts 2020-2027’, available with Market Study Report LLC, global gift cards market valuation had reached USD 619 million in the year 2019 and is expected to grow with a CAGR of 15% between 2020 and 2027.
Widespread adoption of e-commerce services such as digital payment systems or wallets owing to their high convenience is one of the key factors driving the growth of global gift cards market.
A gift card is typically a stored value card which is used as an alternate source of money in specific stores or shops for relevant goods and services. Consumers are lately inclined to purchase gift cards across multiple channels such as smartphone websites, in-store, or online, which in turn is contributing towards the overall industry remuneration.
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It is also worth noting that gift cards are usually issued by a bank or a retailer in order to boost profits, minimize fraudulent activities, improve brand value, attract new customers, as well as a part of an organizational plan. In addition, technological advancements in this business space is paving the way towards global gift cards market growth.
In 2019 for instance, InComm Holdings Inc., who had partnered with Razer Inc. had introduced Google Play Gift Cards in Malaysia and offered the product to around 2,250 7-Elevan stores across the country.
These collaborations and innovative product launches are thus stimulating the overall business outlook. However, lack of adequate security measures and varying kinds of fees for each card transaction could potentially act as a bottleneck to the growth of global gift cards market.
From the regional perspective, the report states that North America currently holds the highest share in global gift cards industry and is likely to continue with its dominance in the upcoming years, owing to high number of retailers and hotel chains across the region.
Meanwhile, Asia-Pacific is estimated to emerge as a lucrative avenue for the industry participants in the forthcoming years, considering developing regions and their countries are lately inclined towards adopting new technologies such as dual-interface or hybrid cars which are known to offer high convenience.
The prominent companies operating in global gift cards market sphere are Village Roadshow Ltd., Stored Value Solutions Inc., Qwikcilver Solutions Pvt Ltd., Plastek Card Solutions Inc., National Gift Card Corp., InComm Holdings Inc., Givex Corp., Fidelity National Information Services Inc., Documax Inc., and Blackhawk Network Holdings Inc. among others.