Saudi Arabia Gift Card and Incentive Card Market Size

Saudi Arabia Gift Card & Incentive Card Market Analysis

After the COVID-19 impact, the demand for gift cards has experienced significant growth due to the limited use of cash payments in the market. Apart from this, as consumers have increased the usage of more effective and secured payments for shopping online.

With several gifting occasions, the growth potential for the gift card market is huge in Saudi Arabia.The gift card adoption has been increasing in Tier 2 and Tier 3 cities though it is still dominated by Tier 1 cities. Apart from this, the wide acceptance of corporate gift cards in the form of rewards and sales incentives to recognize employee performance is further boosting the market growth. Consistent connection of consumers with shopping, owing to rapid growth in digital commerce and increase in number of new technologies that provide customers with innovative & seamless payment options are the major growth factors for the market growth. In addition, ongoing technological innovations in gift cards enable high sales in companies by making their product offerings more unique & attractive, therefore, propels the gift cards market growth.

However, ensuring secure management & privacy of consumer data is one of the major factors that limit the market growth. In addition to this, technological advancements associated with payment solutions and increase in demand for branded products are expected to provide lucrative opportunities during the forecast period. The closed-loop gift card segment dominated the gift cards market , and is projected to maintain its dominance during the forecast period. This is attributed to several benefits such as benefits providing an opportunity to businesses to make money on products purchased using gift cards and free activation for users, which, in turn, drive adoption of closed loop gift card.