Gift cards, also known as gift certificates, gift vouchers, or gift tokens, are generally issued by a retailer or bank. In addition, gift cards are used as a developmental strategy for promoting businesses, attract new customers, increase brand awareness, reduce fraud, and improve business sales. Moreover, a gift card can be utilized as an alternative source for money at a particular store or business store for purchases related to goods or services.
The global gift card market is projected to reach around US$ 900 billion by the end of 2027, in terms of revenue, growing at CAGR of 10% during the forecast period (2019-2027).
Consistent consumer engagement with shopping, as a result of rapid expansion in digital commerce, and an increase in the number of new technologies that give customers with creative and seamless payment choices, are important growth factors for the market. Furthermore, ongoing technological improvements in gift cards enable increased sales in businesses by making their product offerings more unique and appealing, propelling the gift cards market expansion.
However, one of the primary factors limiting market growth is assuring secure management and privacy of user data. Developing economies, on the other hand, provide significant opportunities for gift card solution providers to expand and develop their offerings, particularly in emerging economies such as Australia, China, India, Singapore, and South Korea. Furthermore, technical developments in payment methods, as well as a growth in demand for branded products, are projected to present profitable prospects during the projection period.
The closed-loop gift card segment dominated the gift cards market in 2019, 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.
No comments:
Post a Comment