Gift Card & Incentive Card Market – Global Industry Size, Share, Trends, Opportunity and Forecast, By Type (Gift Card, Incentive Card), By Purpose (Personal Use, Business Use, Others), By Application (Retail, Travel, Food & Beverages, Healthcare, Education, Others), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 270.19 Billion
CAGR (2026-2031)	8.79%
Fastest Growing Segment	Education
Largest Market	North America
Market Size (2031)	USD 447.92 Billion

Market Overview

The Global Gift Card & Incentive Card Market will grow from USD 270.19 Billion in 2025 to USD 447.92 Billion by 2031 at a 8.79% CAGR. The Global Gift Card and Incentive Card Market comprises prepaid payment instruments issued by retailers, financial institutions, or employers, utilized for personal gifting, corporate rewards, and employee engagement strategies. The primary drivers fueling market expansion include the increasing reliance of corporations on non-monetary incentives to improve staff retention and the widespread adoption of digital gifting solutions that offer instant delivery. According to the Incentive Marketing Association, in 2025, 61% of global industry executives anticipated growth specifically within the incentive gift card market. This data underscores the strong commercial confidence in these tools as essential components of modern business operations and consumer transactions.

Despite this positive outlook, the market faces a substantial impediment regarding security vulnerabilities, particularly the proliferation of digital fraud and unauthorized account access. As payment methods become increasingly virtual, sophisticated cyber threats such as card-not-present fraud can severely erode consumer trust and inflate operational costs for issuers. Consequently, the necessity for advanced security protocols remains a significant challenge that could complicate implementation and hinder broader market expansion if not effectively managed.

Key Market Drivers

The proliferation of digital and mobile gifting solutions has emerged as a primary engine for market development, fundamentally altering how consumers and corporations exchange value. As smartphone adoption saturates global demographics, there is a distinct migration from physical plastics to virtual credentials that integrate directly with mobile wallets and messaging platforms. This shift is driven by the demand for instant gratification and the logistical efficiency of electronic delivery, which eliminates shipping costs and inventory constraints. According to Crowdfund Insider, June 2025, in the 'Americans To Buy More Gift Cards' article, nearly 60% of younger consumers expressed interest in purchasing gift cards via messaging and social media apps, signaling a robust preference for integrated digital experiences. This technological evolution supports a broader market buoyancy; according to HomePage News, June 2025, in the 'Gift Card Spending Resilient' report, consumers planned to purchase 10% more gift cards in 2025 compared to the previous year, underscoring the growing reliance on these versatile instruments.

Concurrently, the growth of omnichannel retail and seamless redemption models is significantly expanding market accessibility. Third-party distribution points, often referred to as gift card malls, have become critical infrastructure, allowing shoppers to purchase prepaid cards for various brands within grocery stores, convenience outlets, and digital marketplaces. This ubiquity transforms gift cards from destination purchases into impulse buys and everyday lifestyle tools, deeply embedding them into routine shopping behaviors. The effectiveness of this distribution strategy is evident in recent performance metrics. According to Blackhawk Network, November 2025, in the 'Food for Thought' infographic, gift card malls experienced double-digit growth, highlighting the commercial success of placing diverse prepaid options within high-frequency retail environments. This expansion ensures that incentive and gift cards remain top-of-mind for consumers, driving consistent volume across both physical and digital channels.

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Key Market Challenges

Security vulnerabilities, particularly the rise of digital fraud and unauthorized access, constitute a critical barrier to the Global Gift Card and Incentive Card Market. As issuance shifts toward virtual formats, the anonymity associated with these instruments attracts fraudulent activities such as card draining and account takeovers. This environment forces issuers to implement rigorous verification protocols, which often introduce friction into the customer experience and delay transaction processing. Consequently, legitimate transactions may be declined or abandoned, directly reducing revenue and increasing operational expenses related to fraud management and chargeback resolution.

The persistence of these threats significantly undermines consumer confidence, a vital element for continued market expansion. According to AARP, in 2025, 33% of adults reported giving or receiving a gift card that held no funds due to tampering or theft. Such a high incidence of financial loss discourages both individual consumers and corporate buyers from utilizing these products, fearing that the value will be stolen before redemption. This erosion of trust compels potential buyers to seek alternative payment methods, thereby stalling the broader adoption of gift cards as reliable incentive tools.

Key Market Trends

The emergence of gift cards as personal budgeting and self-use tools represents a fundamental shift in consumer behavior, moving the product beyond its traditional role as a present for others. Driven by inflationary pressures and the desire for financial control, shoppers are increasingly purchasing prepaid cards for their own use to cap discretionary spending or allocate funds for specific categories. This trend transforms the gift card into a functional financial instrument that aids in managing household economy rather than solely serving as a social gesture. According to Blackhawk Network, June 2025, in the 'Amidst Economic Uncertainty, Consumers Lean into Gift Cards' report, nearly one-third of consumers reported purchasing gift cards specifically for their own use, underscoring this pragmatic evolution in usage.

Concurrently, the convergence of loyalty programs with gift card ecosystems is deepening the relationship between issuers and customers. Merchants are integrating stored-value instruments directly with rewards structures, incentivizing consumers to reload and utilize their cards repeatedly by offering points or exclusive benefits. This integration elevates the gift card from a one-time transactional token to a dynamic engagement platform that fosters long-term brand affinity and recurring revenue. According to Fiserv, October 2025, in the 'Gift Cards as Budgeting Tools in 2025' report, 62% of consumers identified bonus loyalty points as a highly desired feature within gift card offerings, highlighting the market demand for value-added incentives that go beyond simple payment utility.

Segmental Insights

The Education segment represents the fastest-growing category within the Global Gift Card and Incentive Card Market. This trajectory is driven by the increasing adoption of prepaid card solutions by academic institutions to streamline financial disbursements. Universities and training centers are transitioning from paper checks to digital cards for efficiently distributing scholarships, grants, and book allowances. Additionally, these instruments are increasingly utilized to facilitate employee recognition programs for faculty and performance incentives for students. This shift ensures secure and immediate access to funds while reducing administrative overhead for educational organizations globally.

Regional Insights

North America maintains a dominant position in the global gift card and incentive card market due to widespread consumer adoption and a strong corporate culture centered on employee rewards and loyalty programs. The region benefits from a mature digital payments infrastructure that supports the seamless integration of electronic stored-value products into retail systems. Furthermore, regulatory frameworks such as the Credit Card Accountability Responsibility and Disclosure Act in the United States provide critical consumer protections regarding expiration dates and fees. This legislative stability fosters high market trust and encourages consistent spending across both physical and digital channels.

Recent Developments

• In March 2025, Runa introduced a new payout technology to its digital value infrastructure, enabling businesses to send instant funds to debit and prepaid cards in over 190 countries. This development allowed companies to originate funds in 18 currencies and disburse them in 160 currencies, significantly broadening the scope of global incentive and reward payments. The CEO of Runa highlighted that the solution was designed to remove banking friction and offer recipients greater choice and speed. The integration supported various business use cases, including gig worker payments and affiliate commissions, alongside the company's existing gift card distribution options.
• In October 2024, Blackhawk Network entered into a strategic partnership with DoorDash to expand the food delivery platform’s consumer and business-to-business gift card programs across the United States and Canada. This collaboration enabled the distribution of the partner's physical and digital gift cards through major retail networks and online portals. Additionally, the arrangement leveraged the payment provider's SaaS-based B2B platform to facilitate bulk purchases for corporate incentives, employee rewards, and fundraising. The initiative was intended to increase accessibility for consumers and provide versatile gifting options during the critical holiday shopping season.
• In May 2024, InComm Payments expanded its presence in the Asian market by launching Roblox gift cards in Hong Kong for the first time. The global payments technology provider collaborated with the popular immersive platform to make these gift cards available at various online and physical retailers, including major convenience store chains. The Senior Vice President of South Asia at InComm Payments noted that the launch catered to the growing consumer demand for products related to virtual experiences. The cards were introduced in denominations ranging from HK$50 to HK$4,000, enabling retailers to attract a broader demographic of gaming enthusiasts.
• In January 2024, Blackhawk Network announced its definitive agreement to acquire Tango Card, a provider known for its digital-first reward experiences and B2B gift card solutions. This strategic acquisition was designed to combine the acquiring company's extensive global scale and connectivity with the target company's innovative API-first technology and reward management platform. The President and CEO of Blackhawk Network stated that the move would provide highly scalable solutions to the rewards and incentives industry, serving as a significant complement to their existing product portfolio. The consolidation aimed to enhance support for enterprise customers distributing digital incentives to employees and consumers worldwide.

Key Market Players

• Spendgo, Inc.
• Emburse, Inc.
• Fiserv, Inc.
• Visa Inc.
• Blackhawk Network Holdings, Inc.,
• Interactive Communications International, Inc.
• Tango Card, Inc.,
• Data Cash Register System Inc..
• Pine Labs Ltd
• GoGift A/S

By Type	By Purpose	By Application	By Region
Gift Card Incentive Card	Personal Use Business Use Others	Retail Travel Food & Beverages Healthcare Education Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Gift Card & Incentive Card Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Gift Card & Incentive Card Market, By Type:

• Gift Card
• Incentive Card

• Gift Card & Incentive Card Market, By Purpose:

• Personal Use
• Business Use
• Others

• Gift Card & Incentive Card Market, By Application:

• Retail
• Travel
• Food & Beverages
• Healthcare
• Education
• Others

• Gift Card & Incentive Card Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE