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US Gift Card and Incentive Card Market Analysis- Industry Size, Share, Research Report, Insights, Covid-19 Impact, Statistics, Trends, Growth and Forecast 2024-2032

Published Date: April, 2024
Base Year: 2023
Delivery Format: PDF+ Excel
Historical Year: 2017-2023
No of Pages: 178
Forecast Year: 2024-2032
Category

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Market Overview

The US Gift Card and Incentive Card Market represent a thriving sector within the broader retail and consumer incentives industry. These cards have become a popular choice for gifting and rewarding employees, customers, and partners. This report explores key market insights, including drivers, restraints, opportunities, dynamics, regional analysis, competitive landscape, segmentation, and more to provide a comprehensive view of this dynamic and evolving market.

Meaning

Gift cards and incentive cards are prepaid cards that hold a specific monetary value, which can be used for purchases at designated retailers or for specific purposes, such as employee rewards or promotional incentives. These cards offer recipients the flexibility to choose their preferred products or experiences.

Executive Summary

The US Gift Card and Incentive Card Market are experiencing significant growth, driven by the convenience and versatility they offer for both gift-givers and recipients. This report delves into market drivers, restraints, opportunities, dynamics, regional analysis, competitive landscape, segmentation, and more to provide a comprehensive understanding of this dynamic and evolving market.

US Gift Card and Incentive Card Market

Key Market Insights

  1. Consumer Preference: Gift cards are a popular choice among consumers due to their flexibility and convenience as gifts.
  2. Corporate Incentives: Many companies use incentive cards to reward employees, driving employee engagement and motivation.
  3. Digital Transformation: The market is witnessing a shift towards digital gift cards and mobile app integration.

Market Drivers

  1. Convenience: Gift cards offer a hassle-free gifting option, allowing recipients to choose their preferred items.
  2. Customization: Businesses can personalize incentive cards with branding and messages to align with their marketing strategies.
  3. Employee Engagement: Incentive cards boost employee morale, productivity, and loyalty, making them a valuable HR tool.

Market Restraints

  1. Expiration Dates: Some gift cards have expiration dates or fees associated with inactivity, which can be a source of frustration for consumers.
  2. Regulation: The industry is subject to regulations regarding card fees, disclosure, and expiration dates.
  3. Economic Conditions: Economic downturns can impact consumer spending, affecting the purchase of gift and incentive cards.

Market Opportunities

  1. Digital Integration: Integrating gift cards with mobile apps and digital wallets enhances user convenience and accessibility.
  2. Corporate Gifting: The corporate sector presents opportunities for bulk sales of incentive cards for employee rewards and customer incentives.
  3. Sustainability: Eco-friendly gift card options appeal to environmentally conscious consumers.

Market Dynamics

The US Gift Card and Incentive Card Market are characterized by constant innovation, evolving consumer preferences, and the integration of technology. Staying updated with market dynamics is crucial for industry participants.

Regional Analysis

The adoption of gift cards and incentive cards varies by region. Urban areas with a high concentration of retailers and businesses tend to have a higher adoption rate. However, rural areas are catching up due to the convenience of these cards.

Competitive Landscape

The market is highly competitive, with established players like Amazon, Walmart, and Visa dominating. Additionally, specialized gift card providers and fintech companies are gaining ground.

Segmentation

The US Gift Card and Incentive Card Market can be segmented into:

  1. Type: Closed-Loop Gift Cards (retailer-specific) and Open-Loop Gift Cards (network-branded).
  2. Usage: Corporate Gifting, Consumer Gifting, Employee Recognition, and Customer Loyalty Programs.
  3. Distribution: Online Sales, Physical Retail Stores, and Corporate Sales Channels.

Category-wise Insights

  1. Closed-Loop Cards: Retailer-specific gift cards offer the advantage of exclusive use at a particular brand, increasing brand loyalty.
  2. Open-Loop Cards: Network-branded cards, such as Visa or Mastercard gift cards, provide recipients with greater flexibility in their choices.
  3. Corporate Gifting: Many businesses use gift cards as rewards, incentives, or holiday gifts for employees and clients.

Key Benefits for Industry Participants and Stakeholders

  1. Revenue Generation: Industry participants benefit from the sale and management of gift and incentive cards, including fees and unused balances.
  2. Brand Promotion: Businesses can use branded gift cards to promote their products and services.
  3. Customer Loyalty: Retailers can build and retain customer loyalty through the use of gift card programs.

SWOT Analysis

Strengths:

  • Convenience and versatility.
  • Customization options.
  • Boosts employee and customer engagement.

Weaknesses:

  • Expiration dates and fees.
  • Regulatory challenges.
  • Economic sensitivity.

Opportunities:

  • Digital integration.
  • Bulk corporate gifting.
  • Sustainable card options.

Threats:

  • Competition from digital alternatives.
  • Economic downturns.
  • Evolving regulations.

Market Key Trends

  1. Digital Transformation: The shift towards digital gift cards and mobile app integration is a prominent trend.
  2. Personalization: Customized gift cards with personalized messages and branding.
  3. Sustainability: Sustainable and eco-friendly card options are gaining traction.

Covid-19 Impact

The COVID-19 pandemic accelerated the adoption of digital gift cards and online shopping, as consumers sought contactless gifting options. This trend is expected to persist post-pandemic.

Key Industry Developments

  1. Mobile App Integration: Gift card providers are integrating with mobile apps to offer digital gift cards for immediate use.
  2. Contactless Payments: The market is adapting to contactless payments, with QR code-based gift cards becoming popular.

Analyst Suggestions

  1. Digital Expansion: Industry participants should prioritize digital integration to meet changing consumer preferences.
  2. Customer Education: Educating consumers about fees, expiration dates, and online redemption options can improve customer satisfaction.
  3. Sustainability Initiatives: Consider offering sustainable and eco-friendly gift card options to appeal to environmentally conscious consumers.

Future Outlook

The US Gift Card and Incentive Card Market is poised for continued growth as consumers and businesses recognize the convenience and versatility of these cards. Digital integration and sustainability initiatives will likely drive future innovations and market expansion.

Conclusion

The US Gift Card and Incentive Card Market play a pivotal role in modern gifting and corporate incentives. These cards offer convenience, customization, and the potential for brand promotion. With ongoing digital transformation and sustainability initiatives, the market is poised for continued growth and adaptation to changing consumer preferences and market dynamics.

US Gift Card and Incentive Card Market Segmentation:

Segmentation Details
Segment Details
Type Open Loop Gift Cards, Closed Loop Gift Cards, Employee/Incentive Cards
Application Retail, Corporate, Restaurants, Others
Region United States

Leading Companies in US Gift Card and Incentive Card Market:

  1. Blackhawk Network Holdings, Inc.
  2. First Data Corporation (A Part of Fiserv, Inc.)
  3. InComm Holdings, Inc.
  4. National Gift Card Corp.
  5. SVM LP
  6. Tango Card, Inc.
  7. GiftCards.com, LLC (A Part of Blackhawk Network Holdings, Inc.)
  8. CashStar, Inc. (A Part of Blackhawk Network Holdings, Inc.)
  9. Giftly (A Part of Blackhawk Network Holdings, Inc.)
  10. Prepaid Technologies (A Part of TSYS, a Global Payments Company)

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