North America Digital Gift Card Market Size Likely to Reach at a CAGR of 14.7% By 2033

As per the current market research conducted by the CMI Team, the North America Digital Gift Card Market size is expected to record a CAGR of 14.7% from 2023 to 2032. In 2023, the market size is projected to reach a valuation of USD 151.1 Million. By 2032, the valuation is anticipated to reach USD 518 Million.

North America Digital Gift Card Market: Growth Factors and Dynamics

• Increasing E-commerce and Online Shopping: The North America digital gift card market is experiencing significant growth due to the rising trend of e-commerce and online shopping. As consumers increasingly prefer digital transactions and online shopping experiences, digital gift cards provide a convenient and efficient way to make purchases or gift items without the need for physical cards.

• Shift Towards Contactless Payments: The ongoing shift towards contactless payments is a major driver for the digital gift card market in North America. With the proliferation of mobile devices and digital wallets, consumers are becoming more accustomed to making transactions without physical cash or cards. Digital gift cards align with this trend, offering a seamless and contactless gifting and payment experience.

• Personalization and Customization: The digital gift card market benefits from the growing demand for personalized and customized gifting options. Consumers appreciate the ability to tailor their gift cards with personalized messages, and designs, and even choose specific brands or products. This customization enhances the overall gifting experience, making digital gift cards a popular choice for various occasions.

• Rise of Mobile Apps and Wallets: The increasing adoption of mobile apps and digital wallets contributes to the growth of the digital gift card market in North America. Many retailers and businesses offer their own mobile apps and integrated digital wallet systems, making it convenient for consumers to store and use digital gift cards directly from their smartphones. This integration streamlines the redemption process and enhances user engagement.

• Expanding Marketplaces and Partnerships: The digital gift card market is expanding through partnerships and collaborations between retailers, businesses, and digital platforms. Many businesses are forming strategic alliances to offer their digital gift cards across multiple platforms and marketplaces, reaching a broader audience. These partnerships contribute to the overall growth of the digital gift card market in North America.

• Tech-Savvy Consumer Demographics: The tech-savvy nature of North American consumers plays a crucial role in the growth of the digital gift card market. As the region has a high penetration of smartphones, internet users, and digital literacy, consumers are more inclined to adopt digital solutions for various aspects of their lives, including gifting. This favorable demographic landscape propels the digital gift card market forward, with consumers embracing the convenience and flexibility offered by digital gifting solutions.

North America Digital Gift Card Market: Partnership and Acquisitions

• In 2023, Starbucks intensifies its partnerships with tech giants Apple, Microsoft, and Amazon, aiming to double its 75 million Rewards members within five years. Leveraging these collaborations, Starbucks seeks to enhance its customer engagement and loyalty programs by tapping into the vast user bases and technological ecosystems of these industry leaders.

• In 2020, Mastercard responded to the increasing demand for digitally driven financial solutions by expanding its Digital First Card Program. This initiative aims to provide enhanced digital money management solutions, catering to the evolving preferences of consumers seeking convenient and efficient financial services.

Report Scope

North America Digital Gift Card Market: COVID-19 Analysis

The COVID-19 pandemic has had a significant impact on the North America Digital Gift Card Market, with the industry experiencing both positive and negative effects. Here are some of the key impacts:

• Accelerated Shift to Online Shopping: The COVID-19 pandemic led to lockdowns and restrictions, prompting a significant increase in online shopping. As physical retail spaces faced closures or capacity limitations, consumers turned to digital gift cards as a convenient and safe way to send gifts without the need for in-person interactions.

• Changing Consumer Behaviour: The uncertainty and health concerns during the pandemic influenced consumer behaviour, fostering a preference for contactless transactions. Digital gift cards gained traction as they align with the contactless trend, allowing recipients to redeem their gifts without physical contact, either online or through mobile apps.

• Impact on In-Store Retail and Gift Card Sales: With many brick-and-mortar stores facing closures or reduced foot traffic, traditional in-store gift card sales were impacted. However, the digital gift card market experienced resilience, as consumers sought alternative ways to purchase and gift items without relying on physical stores, contributing to the growth of the digital gift card sector.

• E-commerce Integration and Partnerships: Post-COVID, the digital gift card market in North America is likely to witness further integration with e-commerce platforms and partnerships with retailers. As online shopping remains popular, digital gift cards can enhance their presence by collaborating with major e-commerce players and offering seamless redemption options on these platforms.

• Promotional Campaigns and Discounts: To stimulate demand and regain consumer confidence, digital gift card providers may initiate promotional campaigns and offer discounts. These strategies can incentivize consumers to purchase and gift digital cards, promoting their use for various occasions and helping the market recover from any lingering impacts of the pandemic.

• Enhanced Personalization and Features: Recovery in the digital gift card market can be facilitated by enhancing the personalization features and introducing innovative elements. This may include interactive and customizable digital gift card experiences, making them more appealing to consumers and encouraging increased adoption.

• Digital Wallet Integration: Integrating digital gift cards with popular digital wallets can contribute to their recovery. Seamless integration with widely used mobile payment apps can make the redemption process even more convenient, aligning with the ongoing trend of digital and contactless transactions.

• Adaptation to Emerging Trends: The recovery of the digital gift card market may involve adapting to emerging consumer trends, such as the use of blockchain technology for secure and traceable transactions, or incorporating augmented reality (AR) and virtual reality (VR) elements to enhance the overall gifting experience. Staying ahead of technological trends can position digital gift cards as modern and innovative gifting solutions.

In conclusion, the COVID-19 pandemic has had a mixed impact on the North America Digital Gift Card Market, with some challenges and opportunities arising from the pandemic.

List of the prominent players in the North America Digital Gift Card Market:

• Amazon com Inc.
• Walmart Inc.
• Apple Inc.
• Google LLC
• eBay Inc.
• Starbucks Corporation
• Target Corporation
• Home Depot Inc.
• Best Buy Co. Inc.
• PayPal Holdings Inc.
• Visa Inc.
• Mastercard Incorporated
• American Express Company
• Sephora USA Inc.
• Netflix Inc.
• Others

The North America Digital Gift Card Market is segmented as follows:

By Channel

• Brick and Mortar
• Digital

By Application Area

• Consumer Goods
• Health and Wellness
• Restaurants and Bars
• Travel and Tourism
• Media and Entertainment
• Others

By Card Type

• Closed Loop
• Open Loop

By End User

• Retail Establishments
• Corporate Institutions

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America