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Gift card adoption in Australia has increased significantly in recent years, encompassing retail and corporate industries. Because of the pandemic, consumers have switched to online buying, which has benefited the gift card sector and pushed the expansion of digital gift cards. Corporate gifting has grown in popularity as companies use gift cards to reward and appreciate employees.
COVID-19 pandemic affected all sectors in Australia. To compensate for these losses, the NSW Government offered adults USD 100 vouchers to spend on entertainment and dining in November 2020 in Sydney and other places under the Out & About scheme. The project cost the government USD 500 million; this initiative was part of the government's effort to encourage people to buy and spend money.
Businesses have begun to recognize the value of prepaid Gift Cards. Gift Cards can be utilized not only as a gifting option but also as a significant instrument to encourage clients to spend money at their establishment. Gift cards can also be used for refunds, returns, and credit notes, and they are an excellent promotional tool.
Karta is a disruptor, a gift card platform that aims to simplify the gift card experience by making it more accessible for merchants and consumers. It aims to remodel the gift card market to provide access to more merchants for whom it is uneconomic today and change the economic model, so revenue is not dependent on "breakage."
Scope of the Report
A gift card is a prepaid debit card loaded with funds for future use, which can be used to make purchases and other financial transactions. Australia Gift Card and Incentive Card Market are segmented by Consumer (Individual and Corporate (Small scale, Mid-tier, and Large enterprise)), by distribution channel (Online and offline), and by product (e-gift card and physical card).
|By Distribution channel|
Key Market Trends
Rising Digital Wallet Adoption in Australia Driving the Market
Australians are increasingly abandoning traditional banking and payment methods in favor of digital alternatives; working from home will always be more prevalent in the workforce, and they have shifted away from using cash, increasing card and technology payments; and the existing trend of doing banking online rather than in a branch continuous.
Overall, 37% of Australians with a smartphone now use digital wallets like Apple Pay, Google Pay, and Samsung Pay to make payments, a rate that has more than doubled since March 2020. This increase has likely been helped in recent years by the rising number of Australian banks that provide digital wallet integration, with nearly 90% of the transaction accounts being tracked in the Mozo database now offering at least one digital wallet option.
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Increasing Partnerships Between Banks and Gift Card Providers Boost the Market
With the rise in customer demand for efficient and innovative gift card solutions in Australia, banking players are trying to enter the space through strategic investment and partnerships. Recently Heritage bank partnered with Blackhawk Network to support its extensive gift card portfolio in Australia, while the Commonwealth Bank partnered with Industry disruptor Karta in 2021 to issue simplified gift cards. Apple pay is collaborated with major banks in Australia to offer services.
These partnerships can reimagine the shopping experiences for Australians, simplifying the purchase, delivery, and use of gift cards and enabling more businesses to participate in this market will enable customers to better support businesses.
The report covers major players operating in Australia's Gift Card and Incentive Card Market. In terms of market share, few major players currently dominate the market. However, with technological advancement and service innovation, domestic to international companies are increasing their market presence by securing new contracts and tapping new markets. It has major players, including Wesfarmers, Woolworths, Metcash, ALDI Group, Gift pay, etc.
- On October 29, 2021, Karta entered a new strategic partnership with the Commonwealth Bank. This partnership is to revolutionize the gifting experience for consumers and businesses of Commonwealth bank.
- On July 12, 2021, Apple launched an all-in-one gift card in Australia. Earlier, Apple provided two separate gift cards, an iTunes card for purchases on the App Store. It also offered the Apple Store card for purchases at its retail or online stores. The company has now combined these two cards into a single offering. It can be used to purchase products and accessories from the Apple store, apps, games, music, movies, TV shows, and iCloud, among others.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Insights on Various Regulatory Landscape
4.5 Insights on impact of technology and innovation in the market
4.6 Industry Attractiveness - Porters' Five Forces Analysis
4.6.1 Threat of New Entrants
4.6.2 Bargaining Power of Buyers
4.6.3 Bargaining Power of Suppliers
4.6.4 Threat of Substitutes
4.6.5 Intensity of Competitive Rivalry
4.7 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Consumer
188.8.131.52 Small scale
184.108.40.206 Large enterprise
5.2 By Distribution channel
5.3 By Product
5.3.1 E-gift card
5.3.2 Physical card
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Market Concetration Overview
6.2 Company Profiles
6.2.4 ALDI Group
6.2.5 Harvey norman holdings
6.2.6 Jb Hi-Fi
6.2.8 Gift pay
6.2.9 The good guys
6.2.11 Australia post
6.2.12 Blackhawk network
7. MARKET OPPORTUNTIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
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Frequently Asked Questions
What is the study period of this market?
The Australia Gift Card and Incentive Card Market market is studied from 2018 - 2027.
What is the growth rate of Australia Gift Card and Incentive Card Market?
The Australia Gift Card and Incentive Card Market is growing at a CAGR of >8% over the next 5 years.
Who are the key players in Australia Gift Card and Incentive Card Market?
Wesfarmers, Woolworths, Metcash, ALDI Group, Harvey norman holdings, Jb Hi-Fi are the major companies operating in Australia Gift Card and Incentive Card Market.