In North America, the market is set to grow by over USD 214.07 Billion between 2024 and 2029, driven by technological innovations and an increasing focus on contactless payments.
The North America gift card market is a dynamic and thriving segment of the region’s consumer economy, serving as a versatile tool for both individuals and businesses. Gift cards are increasingly popular for their flexibility, allowing recipients to choose products or services that match their preferences. Businesses use them as promotional tools to boost customer loyalty and sales. From retail stores to online platforms, the scope of gift cards spans various industries, catering to diverse consumer needs and lifestyles. The market includes a range of options, from closed-loop cards usable only at specific stores to open-loop cards that offer spending flexibility anywhere payment networks are accepted. This diversity ensures that consumers have a wide selection to meet their gifting or personal spending needs. The high adoption of e-commerce in the region has amplified the demand for digital gift cards, offering convenience and instant delivery. Gift cards also play a significant role during holiday seasons and special occasions, driving sales across retail and service industries. Businesses increasingly recognize their value in incentive programs, making them an integral part of rewards systems. This dual role in consumer and corporate segments highlights their adaptability and relevance in North America. As a significant contributor to the region’s retail and services sectors, the gift card market reflects evolving consumer behaviors and spending patterns. Its blend of convenience, customization, and utility ensures its continued growth and relevance in the modern economy. According to the research report, "North America Gift Card Market research Report, 2029," published by Actual Market Research, the North America Gift Card market is anticipated to add to more than USD 214.07 Billion by 2024–29. The North America gift card market is shaped by significant technological advancements and evolving consumer preferences. The increasing use of digital gift cards, spurred by the rise of e-commerce and mobile payment platforms, has emerged as a defining trend. Consumers appreciate the convenience of sending and receiving gift cards online, aligning with the growing preference for contactless and digital-first solutions. Government regulations play a crucial role in ensuring consumer protection and preventing fraud in the gift card market. Rules surrounding expiration dates, inactivity fees, and redemption rights are carefully enforced to promote fair practices. These policies enhance consumer trust while fostering a transparent market environment. Technological innovations, such as blockchain integration, are transforming the market. Blockchain ensures secure transactions and reduces the risk of fraud, particularly in digital gift cards. The incorporation of AI and data analytics is enabling businesses to offer personalized gift card options, driving engagement and loyalty. Several prominent companies dominate the market, leveraging their expansive networks and innovative offerings. Retail giants, payment networks, and e-commerce platforms are key players, capitalizing on their brand reach and technological capabilities to capture market share. Their dominance is further strengthened by strategic partnerships and collaborations with retailers, banks, and technology providers. This dynamic environment, fueled by technological advancements and supported by robust regulations, positions the North America gift card market as a critical component of the region’s retail and digital economy.
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Download SampleMarket Drivers • High Demand for Flexible and Customizable Gifting Options: The growing preference for flexible gifting solutions is a major driver in the North America gift card market. Gift cards offer recipients the freedom to choose their desired products or services, making them a popular choice for personal and corporate gifting. Customization options, such as adding personalized messages or designs, further enhance their appeal. Seasonal events, holidays, and milestone celebrations fuel demand, as consumers increasingly view gift cards as convenient and thoughtful gifts. Businesses also benefit by using gift cards for customer retention and rewards programs, bolstering market growth across diverse consumer demographics. • Increasing Adoption of E-Commerce and Digital Payment Platforms: The surge in e-commerce and digital payments is propelling the growth of the gift card market in North America. Online shopping platforms frequently integrate gift cards as a payment or promotional tool, encouraging their widespread use. Digital gift cards, which can be instantly delivered via email or mobile apps, align perfectly with the region's preference for convenience and speed. Additionally, advancements in mobile wallets and payment apps allow seamless redemption, ensuring a user-friendly experience. These developments are particularly significant among tech-savvy consumers, driving the digital transformation of the traditional gift card market. Market Challenges • Risk of Fraud and Security Concerns: The increasing popularity of digital gift cards in North America has heightened concerns about fraud and security breaches. Cybercriminals often target digital transactions, including gift card codes, leading to unauthorized usage or losses for consumers. Businesses must invest significantly in secure technologies and fraud prevention measures, which can be resource-intensive. Additionally, phishing scams and counterfeit gift cards diminish consumer trust in the market. Addressing these challenges requires constant vigilance, advanced encryption technologies, and awareness campaigns, all of which add complexity to the market's growth. • Lack of Redemption Awareness and Usage Constraints: Many consumers are unaware of the terms and conditions associated with gift card redemption, resulting in unused or partially used cards. In some cases, redemption limitations, such as restrictions to specific stores or expiration dates, discourage their use. For businesses, this represents missed opportunities for customer engagement and repeat purchases. Bridging this gap requires better communication about redemption policies and enhanced flexibility in card usage. However, achieving this balance can be challenging, particularly for smaller businesses without extensive resources for consumer education and policy adjustments. Market Trends • Rising Popularity of Corporate Gift Cards: Corporate gifting is emerging as a significant trend in the North America gift card market. Companies are increasingly using gift cards to reward employees, incentivize customers, and enhance brand loyalty. These cards provide a versatile and cost-effective solution for businesses seeking to build stronger relationships with stakeholders. The customization options available for corporate gift cards, including branded designs and tailored messages, add to their appeal. This trend is further supported by the rise of remote work, where gift cards offer a practical way to recognize employee contributions across dispersed teams. • Emergence of Sustainable and Eco-Friendly Gift Cards: Sustainability is becoming a key focus in the North America gift card market, with consumers and businesses seeking eco-friendly options. Biodegradable or recyclable physical gift cards, as well as entirely digital cards, are gaining traction. Companies are promoting these alternatives as part of their commitment to environmental responsibility, resonating with eco-conscious consumers. Additionally, sustainable gift cards often come with certifications or transparency about materials, further enhancing their appeal. This trend highlights a shift toward greener practices, aligning with broader consumer and corporate sustainability goals across the region.
By Card Types | Closed -Loop Card | |
Open-loop Card | ||
By Sale Channel | Offline | |
Online | ||
By End User | Retail Establishment | |
Corporate Institution | ||
North America | United States | |
Canada | ||
Mexico |
Closed-loop gift cards are a leading segment in the North America gift card market due to their strong appeal among retailers and consumers alike Closed-loop gift cards are a leading segment in the North America gift card market due to their strong appeal among retailers and consumers alike. These cards are restricted to specific stores or brands, making them ideal for businesses looking to drive loyalty and repeat purchases. Retailers often use closed-loop cards to promote their products and services, offering incentives such as discounts or additional rewards for their use. This targeted approach ensures that spending remains within their ecosystem, making it a win-win for both consumers and businesses. Low-priced gift cards dominate the market because they cater to a broad consumer base, including individuals seeking affordable gifting solutions. These cards are particularly popular during seasonal events and holidays when gifting frequency increases. Their lower price points make them accessible to diverse income groups, fueling widespread adoption. Additionally, businesses frequently issue low-priced gift cards as part of promotional campaigns, encouraging customers to explore their offerings and return for future purchases. The combination of closed-loop functionality and affordability ensures that this segment captures a significant share of the market. It bridges the gap between customer preferences for convenient and tailored gifting options while meeting the business need for driving brand-specific sales. The practicality and flexibility of these cards position them as the most preferred choice across North America’s gift card landscape. Retail establishments are the leading end-user segment in the North America gift card market Retail establishments are the leading end-user segment in the North America gift card market, thanks to their extensive use of gift cards as marketing and customer retention tools. These businesses leverage gift cards to attract and retain customers by offering versatile gifting options that enhance the shopping experience. Retailers often incentivize gift card purchases with promotions, such as discounts on the card value or exclusive access to sales, further driving consumer demand. Gift cards also help retailers maintain steady cash flow, as customers typically purchase the cards upfront. Unredeemed balances or "breakage" provide an additional revenue stream, making gift cards a financially advantageous option for businesses. Moreover, when customers redeem gift cards, they often spend beyond the card’s value, resulting in increased sales for the retailer. The widespread presence of retail establishments across North America, ranging from large chains to smaller local stores, ensures the broad availability of gift cards. Retailers often customize their cards to reflect their branding, creating a consistent and engaging customer experience. Seasonal spikes in demand, particularly during holidays and special occasions, further amplify the significance of this segment. Retail establishments also benefit from digital gift cards, which can be seamlessly integrated with e-commerce platforms, aligning with the region’s digital-first shopping behavior. Their ability to cater to both online and in-store shoppers underscores their dominance as the leading end-user segment in the gift card market.
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The United States (US) dominates the North America gift card market due to its robust consumer economy, advanced retail sector. The USA dominates the North America gift card market due to its robust consumer economy, advanced retail sector, and widespread digital adoption. As one of the world’s largest retail markets, the country offers a diverse range of gift cards tailored to different preferences, spanning industries such as retail, hospitality, entertainment, and e-commerce. High disposable income levels and a strong culture of gifting further contribute to the widespread use of gift cards in the USA, making them a preferred choice for both personal and corporate gifting. The digital transformation in the USA has significantly propelled the growth of the gift card market. The widespread adoption of e-commerce platforms and mobile payment solutions has increased the popularity of digital gift cards. Consumers appreciate the convenience and immediacy of purchasing, sending, and redeeming gift cards online. This trend is supported by the advanced technological infrastructure in the country, enabling secure and seamless transactions. Retailers and businesses in the USA actively promote gift cards as part of their loyalty programs and marketing strategies, offering incentives such as discounts or rewards. The large and diverse retail ecosystem ensures the availability of both closed-loop and open-loop gift cards, catering to a broad spectrum of consumers. USA’s corporate sector is a significant driver of the gift card market. Companies frequently use gift cards for employee rewards, client incentives, and promotional activities, contributing to consistent demand. The combination of a thriving retail environment, innovative technology, and a strong gifting culture cements the USA’s position as the leading country in the North America gift card market.
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