India Gift Card Market Research Report, 2029

The gift card market in India has seen rapid growth over the past few years, driven by the rise of e-commerce, the adoption of digital payments, and changing consumer preferences toward more flexible and convenient gifting solutions. As the Indian economy shifts toward a more digital and cashless society, gift cards are gaining popularity, particularly among younger consumers and urban populations. The market consists of both closed-loop and open-loop gift cards, each serving different segments of the consumer base. Closed-loop gift cards, such as those offered by popular retail chains like Shoppers Stop, Big Bazaar, and Pantaloons, are used at specific stores and are often favored for their wide product selection and discount offerings. Open-loop cards, like those provided by Visa, Mastercard, and Rupay, offer consumers the flexibility to use them across a range of stores and services, making them a preferred option for corporate gifting and incentives. Additionally, digital gift cards have gained popularity in India, allowing users to redeem them online on e-commerce platforms such as Amazon, Flipkart, and Myntra. Digital gift cards are especially attractive due to their convenience, ease of purchase, and the ability to be sent instantly via email or messaging apps. As consumer awareness about the flexibility and ease of gift cards grows, the market for these cards in India is set to expand significantly. According to the research report "India Gift Card Market Research Report, 2029," published by Actual Market Research, the India Gift Card market is anticipated to grow at more than 18.11% CAGR from 2024 to 2029. E-commerce platforms in India have played a substantial role in popularizing digital gift cards by offering them as a convenient and flexible gifting option during major shopping events like Diwali, Christmas, Raksha Bandhan, and other festivals. With India’s diverse cultural landscape and a strong culture of gifting during festivals and special occasions, digital gift cards have emerged as an attractive choice for both givers and receivers. Additionally, corporations in India are increasingly using gift cards as part of their employee incentive and reward programs. This trend has been particularly strong in the IT and services sectors, where companies view gift cards as a flexible and hassle-free way to motivate employees. The growing popularity of gift cards is further bolstered by the Indian government’s push toward digital transactions and financial inclusion, which has encouraged both businesses and consumers to adopt cashless methods of payment. The government’s support for digital infrastructure, as evidenced by the UPI system and India Stack, has created a favorable environment for digital payment solutions, making it easier for consumers to purchase, send, and redeem gift cards. This alignment between government policy and consumer behavior is a key driver in the Indian gift card market’s rapid expansion.

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In India, the gift card market has seen significant growth, driven by cultural gifting traditions, corporate rewards practices, and increasing digitalization. Closed-loop cards are immensely popular, particularly those issued by large Indian retail brands such as Shoppers Stop, Big Bazaar, and Reliance. These cards, restricted to specific stores or brand families, encourage customer loyalty and repeat shopping within particular brands, especially during major festivals like Diwali, Eid, and Dussehra. Closed-loop cards are frequently given as gifts during weddings, birthdays, and festive occasions, serving as a convenient way to give loved ones access to clothing, electronics, and household goods. Closed-loop gift cards are also gaining popularity in digital formats, accessible via apps and SMS, making them easier to send and receive in a country with a rapidly growing mobile user base. On the other hand, open-loop gift cards backed by networks like Visa and Mastercard have become increasingly favored, especially among young professionals and urban dwellers who value the flexibility to spend at multiple stores and online platforms. These cards are accepted widely, from retail stores to dining establishments and e-commerce platforms, making them practical for a variety of purchases, including fashion, dining, travel, and entertainment. As a result, open-loop gift cards are highly popular for corporate gifting, as they offer recipients the freedom to select their preferred products or services. India’s gift card market covers a broad range of price points, with high, medium, and low-value cards catering to diverse gifting needs and economic demographics. High-value cards, generally above INR 5,000, are often used for weddings, major festivals, and significant corporate rewards. These cards are commonly used to purchase premium goods, such as electronics, luxury fashion, or home appliances, and are favored by corporations as incentives for high performers or executive gifts. High-value cards are also popular among families for significant celebrations, where gifting something valuable reflects appreciation and respect. Medium-value cards, typically ranging from INR 1,000 to INR 5,000, are among the most popular in India, ideal for general gift-giving occasions like birthdays, anniversaries, and family gatherings. Brands like Amazon, Flipkart, and Myntra offer medium-value gift cards, which are widely appreciated due to their flexibility and applicability across a wide range of goods and services. These cards allow recipients to purchase everyday essentials, clothing, or beauty products, making them versatile and thoughtful gifts. Low-value cards, usually valued at INR 500 or less, serve as small tokens of appreciation, frequently used as thank-you gestures or in loyalty programs. They are popular among smaller retail chains, cafes, and e-commerce platforms, where they encourage repeat purchases and customer engagement. Low-value cards are also commonly given during festivals as part of corporate appreciation, especially in industries like retail and food services. Retailers and corporate institutions in India leverage gift cards to drive customer engagement, reward loyalty, and recognize employee achievements. Retailers, especially e-commerce giants and large physical stores, use gift cards to attract customers during sale seasons, festivals, and special occasions, encouraging people to shop with ease. Brands often offer promotional discounts on gift cards during Diwali, Christmas, and New Year sales, which further boost their appeal and usage. Digital gift cards are increasingly popular in India, with QR-code-based and app-integrated options accessible through payment platforms like Paytm, Google Pay, and PhonePe, allowing customers to redeem cards seamlessly online or in stores. Corporate institutions, from IT firms to banks and manufacturing companies, frequently use gift cards as part of their employee recognition programs, client rewards, and holiday gifts. Open-loop cards are particularly valued in corporate settings, as they provide recipients with the freedom to purchase from a wide selection of brands and services, aligning well with the increasingly personalized approach to rewards in Indian workplaces. Additionally, digital gift cards have gained traction in India’s corporate culture, particularly as remote work has expanded; these cards allow companies to send virtual rewards to remote employees, reinforcing team morale and appreciation across locations. Balancing cultural tradition with digital innovation, the Indian gift card market reflects a dynamic mix of convenience, flexibility, and respect for personal choice, making it an integral part of both consumer and corporate gifting practices in the country.

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Kripa Shah

Senior Analyst

Considered in this report • Geography: Global • Historic Year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecast year: 2029 Aspects covered in this report • Global 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 recommendation By Card Types • Closed -Loop Card • Open-loop Card

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By Price Range • High • Medium • Low By Sale Channel • Offline • Online By End User • Retail Establishment • Corporate Institution The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.