The Gift Card Industry in Details

The global gift card industry is categorized into two major sub-sectors: the Open Loop and Closed Loop. The Open Loop sub-segment is projected to generate the highest revenue. However, the closed loop sub-segment is anticipated to be the fastest growing sub-segment.Growth of the gift card market
The growth of the gift card industry will be fueled by many factors. Increased smartphone penetration, increasing per capita income, and expanding e-commerce are all likely to boost the industry. However, secure management of consumer data is a key issue that could hinder the growth of this industry. But there are many opportunities for the industry to expand in emerging economies.Many key players in the industry are implementing strategies to improve their position in the gift card market. One of them is National Gift Card Corp. (NGC). NGC recently announced that it would expand its manufacturing facility in Holland, Michigan, and hire nine new software engineers to support the growing demand for gift card technology solutions.Trends in the market
This market report provides the latest information on trends affecting the global gift card market. It includes details of recent developments, trade regulations, production analysis, and value chain optimization. It also identifies emerging revenue pockets and analyses the impact of domestic and localized players. Moreover, it covers the latest technological innovations and product approvals.The emergence of digital payment solutions such as contactless and mobile phones is a major trend that is transforming the gift card industry. In the past, physical cards were the most popular choice for gift giving, but today, more consumers use digital cards. As the use of digital payment methods becomes widespread, there is a great opportunity for the gift card industry.The global gift card market has seen substantial growth over the past few years, and is expected to continue to grow in the coming years. This growth is attributed to the growing number of smartphone users and the proliferation of online retailers. In addition, corporate gift cards are becoming a popular form of reward for employees. In addition, the increased penetration of m-commerce and e-commerce is expected to continue driving growth in the coming years.Key market players
There are several key players in the gift card industry. Each one is engaged in various strategies to strengthen their position in the industry. The national gift card corporation, for instance, recently announced that it will expand its facilities in Holland, Michigan and hire nine new software engineers to support the growing demand for gift card technology solutions.The global gift card market was valued at US$767 billion in 2020. By 2026, it is projected to reach US$1.4 trillion. The growth of this market is estimated at 11.1% CAGR over the forecast period. In terms of region, the North American region will witness steady growth. This is attributed to the presence of established hospitality infrastructure and the increase in acceptance of technology. Growth is expected in Asia Pacific region as well, driven by ongoing developments in the region. Rising popularity of e-gifting and the development of innovative payment methods are some of the key factors contributing to this growth.Security challenges in the market
The security of consumer data on gift cards is a critical challenge for businesses that accept these cards online. Businesses can prevent attacks by monitoring their website's traffic patterns and implementing controls to prevent purchases that exceed balance limits. Often, small increases in traffic can be an indicator of an attack. Other security measures include requiring strong passwords and regularly changing them. Digital gift cards have become an indispensable fixture in the digital retail space, but companies must remain vigilant against fraud and identify new threats as they arise.Despite the popularity of gift cards, many companies fail to secure them effectively. For example, identification numbers on gift cards can run in a long sequence, exposing their information to hackers. Some retailers have also overlooked security gaps in their mobile gift card offerings, allowing unauthorized third parties to access money loaded onto other shoppers' gift cards.Opportunities in the market
The gift card industry has seen significant growth over the past three years. Today, 65% of consumers buy digital gift cards without any advertising, a significant increase over the previous year's figures. This growth is attributed to the increasing online penetration and creative tools used in e-commerce. The growth of digital gift cards is an excellent opportunity for merchants to increase their share of the gift card market.While there are challenges associated with the industry, the growth potential is huge. Emerging economies, particularly China and India, are expected to offer significant opportunities for gift card solution providers. These countries are likely to have large numbers of consumers who are increasingly using their mobile devices to make purchases.