Need a report that reflects how COVID-19 has impacted this market and its growth?
The rise of the US Gift and Incentive Card market, which has been steadily increasing, has accelerated in the aftermath of the pandemic. The digital gift card segment had a significant gain in 2021 as a result of the Covid-19-induced lockout and movement limitations and is likely to continue on its upward trajectory in 2022. Despite the short-term hurdles posed by the epidemic, the medium- to the long-term growth story of gift and incentive cards in the United States continues to be positive.
Due to rising millennial use of gift cards, the development of digital gift cards, and increased e-commerce activity, the Gift Card and Incentive Card Market in the United States is seeing tremendous growth. According to the survey, the gift card market in the United States is being driven by millennials and Gen Z customers. Gift cards for self-use and gifting are becoming more popular as these demographic segments' purchasing power grows. Furthermore, digital gift cards are more popular among these customer demographics than physical gift cards. This is largely due to rising smartphone adoption and the simplicity with which digital gift cards can be managed via digital wallets and mobile apps. As a result, top gift card companies are concentrating their efforts on providing digital gift cards to these customers. Another new trend is for freelancers to take gift cards as payment for their services, which is predicted to help the country's gift card market flourish.
Consumers in the United States are increasingly interested in using gift cards in stores, on websites, and on mobile devices. Consumers' increasing preference for omnichannel gift cards is leading to more strategic alliances in the gift card industry. Several new and imaginative uses for gift cards have emerged in recent years. Innovative program launches, ranging from regional governments providing gift cards for immunization to offering gift cards to assist local businesses, have aided the expansion of the gift card market in the United States and are predicted to continue to do so.
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 US 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 US Gift Card and Incentive Card Market can be segmented, By Card Type (E-Gift card, Physical card), By Consumer Type (Retail Consumer, Corporate Consumer), and by Distribution Channel (Online, Offline).
|By Card Type|
|Physical Gift Card|
|By Consumer Type|
|By Distribution Channel|
Key Market Trends
Digital or E-Gift Cards is accelerating due to E-Commerce Development
Digital gift cards, often referred to as e-gift cards, gift certificates, and vouchers, are electronic counterparts of traditional gift cards provided by retailers. These cards work by utilizing gift codes provided by retailers and can be sent via email or mobile applications. Digital gift cards are frequently used in company development methods to promote enterprises, raise brand awareness, reduce fraud, and attract new clients. The demand for digital gift cards is primarily driven by rising levels of digitization along with the increased penetration of smart devices. Furthermore, the developing e-commerce sector has led to an increase in the use of e-gift vouchers in the US market for providing distinctive and appealing product offerings. The usage of digital or e-gift cards grew dramatically during 2020, owing to the market scenario of social distancing, which improved the value proposition of this category. In recent quarters, the digital or e-gift card market has shown considerable growth, which is likely to continue in the US over the forecast period. Amazon gift cards, eBay, and Mastercard are some of the most popular gifting options in the United States.
To understand key trends, Download Sample Report
Open Loop Gift Cards are becoming Popular among US Consumers
Closed-loop gift cards are often sold by retailers and allow cardholders to purchase anything from that particular business. They are usually limited to a particular retailer and can only be used in the store or on the website of that merchant. Meanwhile, open-loop gift cards function similarly to cash, or more accurately, debit or credit cards that can be used at any merchant that accepts the card, as well as online. Open-loop gift cards are available from a number of major credit card issuers/processors, including Visa, MasterCard, American Express, and Discover. Consumers may have become more interested in open-loop cards at the start of COVID-19 because of their ease and flexibility, as well as the ease with which they can be used. Given the exceptional amount of E-commerce conducted during the COVID-19 as consumers began to practice social distancing, it's also possible that open-loop cards are more appealing than paying interest on credit in a time of economic uncertainty, or that they're regarded as less of a security risk when shopping online.
United States 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 September 2021, Factor4, one of the largest producers of gift card and loyalty solutions in the United States, said that the firm had engaged in a strategic agreement with SavorConnect, a leading cloud-based integration platform. Factor4 will create omnichannel gift cards on Shopify as part of this strategic relationship, which consumers can spend online, in-store, and on mobile devices.
- In May 2022, New Seasons Market and New Leaf Community Markets on the West Coast have expanded their cooperation with worldwide branded payments provider Blackhawk Network to improve the online gift card programs for their community groceries.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Market Driver
4.3 Market Restraints
4.4 Insight on Technologial Adoption in the Market
4.5 Porters 5 Force Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Insight on Various Government Regulations in the Market
4.7 Impact of Covid 19 on market
5. MARKET SEGMENTATION
5.1 By Card Type
5.1.1 E-Gift Card
5.1.2 Physical Gift 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 Concentration Overview
6.2 Company Profiles
6.2.2 Tango Card
6.2.4 Nift Network
6.2.5 Blackhawk Network
6.2.10 American Express*
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
You can also purchase parts of this report. Do you want to check out a section wise price list?
Frequently Asked Questions
What is the study period of this market?
The US Gift Card and Incentive Card Market market is studied from 2018 - 2027.
What is the growth rate of US Gift Card and Incentive Card Market?
The US Gift Card and Incentive Card Market is growing at a CAGR of 8% over the next 5 years.
Who are the key players in US Gift Card and Incentive Card Market?
Factor4, Nift Network, Prepaid2Cash, Tango Card, Blackhawk Network are the major companies operating in US Gift Card and Incentive Card Market.