The Global gift card market is expected to US$1.4 Trillion by the Year 2026:
The Global Gift Card Market: In the commercial sector, gift cards are the closest alternative to cash. In recent times, cash gifts have been perceived and considered as unthoughtful because it is believed that no effort is put in and it somehow implies a calculated monetary value tagged to the relationship between the sender and receiver, this has contributed to the increasing popularity of gift cards. Convenience and flexibility are the two key benefits of gift cards driving their adoption among people, companies and marketers the world over. For firms, gift cards help express gratitude and appreciation for workers. Incentives in the workplace helps build an inclusive work environment.
For retailers and marketers like Amazon, Best Buy, and Footlocker among many others, gift cards help:
- build brand awareness;
- Grab more holiday sales;
- Promote customer engagement;
- Spawn useful customer behavioural data;
- Offer easy distribution and improve cash flow.
With increasing preference for online shopping by millennial brides and Gen-Z teens, e-gift cards are becoming a big business in the global economy. With internet-savvy brides at ease with online purchasing, wedding e-gift cards are rising in demand.
Part of the perks of gift cards in eCommerce businesses includes increased sales and customer loyalty. Integrated gift card systems help customers make payments without the use of the traditional payment method (cash) while simultaneously helping retailers track and analyze customer behaviour.
During the 2020 global pandemic, the gift card market was estimated at US$767.4 Billion and it is projected to reach a revised size of US$1.4 Trillion at the end of 2026, growing at a Compound Annual Gross Rate of 11.1% over the analysis period. Closed loop gift cards (gift cards that can only be redeemed at the issuer’s store) are projected to grow at an 11.4% Compound Annual Gross Rate to reach US$410.8 Billion by the end of 2026.
In recent years, gift cards have gained substantial attention in the restaurant industry as an excellent marketing and branding approach along with a lifeline for businesses who are dealing with challenges that came with the pandemic. A good portion of customers prefers gift cards payment to their favoured restaurants, providing restaurant owners with the chance to serve them.
Major retailers and restaurant chains such as Walmart, Amazon, Target, Starbucks and Chipotle offer their’ customers both digital (E-code) and physical gift cards. Digital gift cards make it convenient for customers to speed up the checkout process when making payments online. The growing involvement of smartphones and devices is contributing to the vigorous demand for digital gift cards.
The U.S. Market is Estimated at $313.4 Billion in 2021, While China is Forecast to Reach $156.4 Billion by 2026
The Gift Cards market in the U.S. is estimated at US$313.4 Billion in the year 2021. The country currently accounts for a 38.26% share of the global market. China, the world`s second-largest economy, is forecast to reach an estimated market size of US$156.4 Billion in the year 2026 trailing a CAGR of 15.3% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 8.9% and 11.1% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 10.1% CAGR while the Rest of the European market (as defined in the study) will reach US$50.3 Billion by the end of the analysis period.
Read the full report: https://www.reportlinker.com/p06219503/?utm_source=GNW
The Art Of Trading Unused Gift Cards
The gift card economy was popularly known for the amount of gift card that goes unredeemed by the buyers. Doing the early days of gift cards, about 10% of purchased gift cards go unused accounting for about US$8 billion in gift cards. This has led to the invention of gift card vendors that will trade your unused gift card for cash.
In Africa, Cardvest happens to be one of the best gift card exchange platforms due to the amazing service offered. The amazing services offered include:
- Favourable resell value of your gift cards
- Fast and secure transactions
- 24/7 customer support system
- Wide scope of supported gift cards
How to trade your gift card
It is very easy to trade your gift card on Cardvest, follow the steps below on either the mobile app or website;
- Create an account
- Complete your account set-up by adding your bank account (for withdrawal purposes)
- Navigate to the trade gift card section. Choose and provide the gift card details and upload a picture of the gift cards.
- Funds will be sent to your account upon verification.