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The retail and business consumer divisions of the gift card market in Canada have seen significant expansion in recent years. Diverse retail sectors are taking part, and rising popularity has included travel agencies, content portals, and mobile payment providers.
Since March 2020, the nation has been under heavy lockdown owing to a coronavirus outbreak. Due to COVID-19, the socioeconomic climate was significantly damaged, which reduced the number of celebrations and gifts given. However, the pandemic had a favourable effect on e-commerce; this tendency is anticipated to continue in the upcoming quarters. In addition, the market for gift cards has benefited from this.
Gift card and incentive card sales are soaring in Canada as a result of rising millennial gift card usage, the emergence of digital gift cards, and increased e-commerce. According to the poll, Gen Z and millennial consumers are driving the gift card market in Canada. As the spending power of these demographic divisions increases, gift cards for both personal use and giving are becoming increasingly common. Additionally, across these client segments, digital gift cards are more common than physical gift cards.This is largely because more people are using smartphones and because managing digital gift cards via mobile applications and digital wallets is so easy. Top gift card firms are focusing their efforts on giving these clients digital gift cards as a result. Another emerging practise will likely contribute to the growth of the nation's gift card market: freelancers accepting gift cards in exchange for their services.
Scope of the Report
A gift card is a prepaid debit card with a predetermined amount of money on it that may be used for a range of purchases. A loyalty, prize, incentive, or promotional card that is funded by a business and not available for purchase by the general public is referred to as an incentive card. This report aims to provide a detailed analysis of the Canada Gift Card and Incentive Card Market. It focuses on the market dynamics, emerging trends in the segments, the future of markets, and insights on various drivers and restraints. Also, it analyses the key players and the competitive landscape in the market. The Canada Gift Card and Incentive Card Market are segmented based on the Card Type (E-Gift card, Physical card), by Consumer Type (Retail Consumer, Corporate Consumer) and by Distribution Channel (Online, Offline).
|By Card Type|
|By Consumer Type|
|By Distribution Channel|
Key Market Trends
Strong Growth in the E-Commerce Market is Driving the Gift Card Industry
The e-commerce sector's rapid expansion is one of the key drivers fueling the growth of the gift card market in Canada. On the back of the protracted lockdown restriction and expanding internet and smartphone penetration rate in the nation, the number of customers who switched to online shopping climbed dramatically over the last four to eight quarters.
Younger Canadian consumers who purchase mostly on their mobile devices will dominate the online retail business. Notably, over the next four to eight quarters, this expansion in the e-commerce sector will promote the expansion of digital gift cards as well as the entire Canadian gift card market.
Digital gift cards are very popular in the hospitality and spa industry. Many restaurants offer gift cards to their loyal customers as an appreciation for their loyalty. As the effects of the pandemic recede, many small businesses have come forward with a plan to offer gift cards to their customers to get back on track and cover up the pending targets as much as possible. Also, digital gift cards bring in instant cash flow when offered to regular customers.
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Greater Adoption of E-Gift Cards
The e-Gift Card category has shown tremendous growth in recent times, as enterprises and corporates are taking the e-gifting route to engage with their employees and partners to minimize contact in the wake of COVID-19.
Digital gift cards might be one of the most underutilized growth tools in eCommerce. Not only do they require minimal upfront risk, but they can also help boost your brand awareness, drive sales, and build customer loyalty.
Online gift cards are among the most popular choices for holiday shoppers. But the global pandemic has accelerated their sales even beyond seasonal periods.
Canadian Gift Cards and Incentive Cards Market is highly fragmented with a large number of players offering Closed-loop gift cards, many credit card issuers such as Visa, Mastercard, American Express, and Discover also provide Open-loop gift cards. The presence of a large number of competitors offering various kinds of gift and incentive cards makes the market highly competitive.
- In August 2021, The launch of a new gift card programme in collaboration with EML Payments Limited was announced by Downtown gift card company Miconex. The success of the current gift card systems for Peterborough and Prince Edward Island served as the foundation for the introduction of new schemes.
- in 2021, One of the top global gift card firms, InComm Payments, stated that it is increasing its footprint in prepaid gift cards through a relationship with ONroute convenience store.
Table of Contents
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
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 Value Chain Analysis
4.7 Industry Attractiveness - Porters' Five Forces Analysis
4.7.1 Threat of New Entrants
4.7.2 Bargaining Power of Buyers
4.7.3 Bargaining Power of Suppliers
4.7.4 Threat of Substitutes
4.7.5 Intensity of Competitive Rivalry
4.8 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Card Type
5.1.1 E-Gift Card
5.1.2 Physical Card
5.2 By Consumer Type
5.2.1 Retail Consumer
5.2.2 Corporate Consumer
5.3 By Distribution Channel
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Market Concetration Overview
6.2 Company Profiles
6.2.2 Paytm Canada
6.2.3 Cadillac Fairview
6.2.4 Miconex Ltd
6.2.8 American Express
6.2.9 Peterborough DBIA
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
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Frequently Asked Questions
What is the study period of this market?
The Canada Gift Card And Incentive Card Market market is studied from 2018 - 2027.
What is the growth rate of Canada Gift Card And Incentive Card Market?
The Canada Gift Card And Incentive Card Market is growing at a CAGR of >8% over the next 5 years.
Who are the key players in Canada Gift Card And Incentive Card Market?
Swagbucks, Paytm Canada, Cadillac Fairview, Miconex Ltd, InComm are the major companies operating in Canada Gift Card And Incentive Card Market.