Digital Gift Card Market - Cumulative Impact of United States Tariffs 2025 - Global Forecast to 2030

The Digital Gift Card Market size was estimated at USD 323.31 billion in 2024 and expected to reach USD 358.90 billion in 2025, at a CAGR 11.24% to reach USD 612.88 billion by 2030.

The digital gift card ecosystem has matured into a strategic tool for brands aiming to deepen customer engagement, drive incremental revenues, and boost loyalty. Once a simple token of appreciation, digital gift cards now serve as versatile instruments that span corporate incentives, seasonal gifting, and personal celebrations. In this dynamic environment, businesses leverage the seamless delivery, real-time activation, and data-driven personalization that digital formats afford. As consumer preferences shift toward instantaneous gratification and touchscreen transactions, digital gift cards have outpaced their physical counterparts in convenience and scalability. Moreover, the growing integration of gift cards within mobile wallets and e-commerce platforms underscores their evolution from mere purchase certificates into multifaceted assets that reinforce brand affinity and open cross-sell opportunities.

This executive summary synthesizes key developments shaping the market, analyzes how emerging policy changes and tariffs are influencing operational costs, and distills actionable insights drawn from granular segmentation, regional trends, and the competitive landscape. By combining in-depth analysis with forward-looking recommendations, this report equips decision-makers with the intelligence needed to refine go-to-market strategies, optimize portfolio offerings, and secure leadership positions in the expanding universe of digital gifting.

Digital transformation has propelled gift cards from paper certificates to fully integrated components of omnichannel commerce. Enhanced mobile adoption, powered by contactless payments and digital wallets, has shifted consumer expectations toward instantaneous issuance, peer-to-peer gifting, and app-driven redemption experiences. Meanwhile, advanced data analytics enable personalized offers and dynamic value propositions, allowing brands to tailor gift card promotions to individual purchase histories and life moments.

At the same time, the rise of subscription and experience-based gifting has redefined value beyond monetary balances. Consumers now crave curated bundles-such as spa vouchers combined with wellness consultations-or tiered gift cards that unlock exclusive content and membership privileges. This focus on experiential differentiation has prompted technology providers to develop platforms capable of supporting multi-tiered, event-driven gift cards that seamlessly integrate into loyalty ecosystems.

Technological advances in API connectivity and blockchain-enabled tokenization have further expanded use cases. API-first architectures facilitate instant card issuance across partner networks, while distributed ledger technologies offer unparalleled security and traceability. As these innovations gain traction, brands and payment networks are collaborating to create frictionless marketplaces where gift card balances can be exchanged, resold, or even used as collateral for micro-loan services.

The implementation of new U.S. tariffs in 2025 has introduced a complex layer of cost pressures for businesses operating within the digital gift card value chain. Although digital products themselves are intangible, the ancillary hardware-such as point-of-sale terminals-and the international servers hosting encrypted gift card databases are subject to duty classifications. Increased import duties on card-reading devices and secure thermal printers have forced retailers to reassess supplier contracts, driving many to negotiate bulk discounts or explore alternative vendors in duty-free zones.

Moreover, service providers that rely on cross-border data centers have faced higher operational expenditures as tariffs ripple through hardware maintenance costs. These additional charges have, in some cases, been passed to end-users in the form of redemption fees or platform-usage surcharges. Simultaneously, financial intermediaries are adapting merchant fee structures to absorb part of the tariff impact, offering tiered subscription models and volume-based pricing to maintain competitiveness.

To mitigate these challenges, leading organizations are diversifying their vendor portfolios, relocating production of card-activation chips to domestic facilities, and investing in cloud-native solutions that reduce reliance on physical infrastructure. Regulatory compliance functions have expanded to incorporate tariff management, ensuring that procurement teams remain agile in responding to policy shifts. Together, these measures are rebalancing cost models and reinforcing supply chain resilience in a period of heightened geopolitical uncertainty.

A nuanced segmentation analysis reveals distinctive growth drivers and optimization opportunities across product and customer dimensions. When examining based on Card Type, the closed-loop segment thrives in retail-centric environments where cards are redeemable at a single merchant, enabling brands to recapture unspent balances and foster repeat visits. Conversely, open-loop gift cards-accepted across extensive payment networks-cater to flexible spenders seeking broader choice, often serving as corporate incentives and mass-market rewards.

Evaluating the landscape by Purchase Occasion highlights divergent spending patterns: corporate milestones demand high-value digital bundles with integrated reporting dashboards, while festival gifting peaks during holidays, necessitating rapid campaign executions. Personal events, from birthdays to anniversaries, drive sporadic surges in B2C digital purchases, underscoring the need for responsive e-commerce interfaces and last-minute delivery capabilities.

Transaction Type segmentation uncovers that B2B channels focus on bulk order management, API automation, and compliance controls, whereas B2C channels prioritize seamless checkout flows, omnichannel redemption, and social sharing functionalities. The Purchase Method dimension further distinguishes success factors: direct sales through company websites offer margin control and data ownership; mobile applications excel at engagement through push notifications; third-party platforms deliver scale and cross-promotional synergies.

Applications vary widely: consumer goods and media & entertainment gift cards leverage partnerships with retail chains and streaming services, respectively, while health & wellness providers design subscription-style gift cards for spa treatments. Restaurants & bars utilize digital vouchers to stimulate off-peak traffic, and travel & tourism operators bundle lodging and experiences to maximize average order value.

Finally, evaluating End User profiles reveals that large enterprises demand enterprise-grade security, white-label solutions, and global fulfillment, whereas small and medium-sized enterprises seek cost-effective platforms with plug-and-play integrations. Individual consumers, by contrast, value ubiquity across digital channels, intuitive design, and flexible denominations that align with personal budgets.

Across the Americas, digital gift cards are entrenched as primary tools for both corporate rewards and consumer gifting, spurred by advanced mobile payment infrastructures and omnichannel retail networks. In the United States and Canada, businesses increasingly integrate gift cards into loyalty programs, offering tiered incentives to high-value customers and driving post-purchase engagement through targeted email and SMS campaigns.

In Europe, Middle East & Africa, regulatory frameworks around data privacy and cross-border transactions shape the design and distribution of digital gift cards. The European Union’s strong GDPR enforcement has led providers to embed privacy-by-design principles, ensuring that data-driven personalization respects consumer rights. Meanwhile, the Middle East and Africa are witnessing rapid growth in mobile wallet adoption, with digital gift cards serving as entry points for broader fintech inclusion.

Asia-Pacific stands out for its mobile-first culture and accelerated uptake of QR code–based redemption, especially in markets like China and India. Local payment giants have introduced super-apps that seamlessly integrate gift card purchases into ride-hailing and food delivery services, creating an ecosystem effect that amplifies cross-category spend. Governments across the region are also promoting digital payment adoption, further accelerating gift card penetration into underbanked segments.

The competitive landscape encompasses technology innovators, payment networks, retailers, and emerging fintech challengers, each carving out strategic positions. Airbnb, Inc. and Amazon.com, Inc. have leveraged vast user bases to introduce branded gift cards that seamlessly integrate into accommodation bookings and retail purchases. American Express Company and Visa Inc. continue to expand open-loop gift card offerings, emphasizing security features and global acceptance.

Apple Inc. and Google LLC by Alphabet Inc. have embedded digital gift card functionalities into their wallet ecosystems, enabling frictionless issuance and in-app redemption. Similarly, PayPal Holdings, Inc. and Mastercard Incorporated offer streamlined merchant onboarding and API suites that attract B2B clients seeking enterprise-grade solutions. InComm Payments and Blackhawk Network Holdings, Inc. specialize in distribution networks, ensuring that gift cards are available at retail points of sale and via online portals.

Retail giants like Walmart Inc., Target Corporation, The Home Depot, Inc., and Best Buy Co., Inc. deploy proprietary closed-loop gift cards to drive in-store foot traffic and stimulate ancillary purchases. Concurrently, high-end brands such as LVMH Group and Inditex, S.A. use digital gift cards as premium gifting instruments that extend brand prestige and enhance customer lifetime value.

Fintech players like Block, Inc., Klarna Holding AB, and Rakuten Group, Inc. have entered the space with flexible payment solutions that allow gifting on installment plans or earn loyalty points. Emerging specialists-Prezzee, Inc., Pentland Group, Synchrony Financial, and Virgin Red Limited-compete on niche use cases, ranging from experience-based vouchers to cross-brand reward consolidation. Global conglomerates such as Majid Al Futtaim Holding and Inter IKEA Holding B.V. leverage digital gift cards for loyalty integration across multiple retail verticals, while grocery leaders like The Kroger Co. and J Sainsbury PLC harness digital vouchers to promote private label brands and drive basket size.

To maintain a competitive edge, industry leaders must prioritize seamless omnichannel experiences by integrating digital gift card offerings across e-commerce sites, mobile apps, and point-of-sale systems. By deploying machine learning algorithms to analyze purchase behaviors, companies can tailor dynamic gift card suggestions and personalized promotions that resonate with distinct customer segments.

Investing in robust security frameworks-incorporating tokenization, multi-factor authentication, and real-time fraud monitoring-will safeguard transactional integrity and reinforce consumer trust. Additionally, forging strategic alliances with fintech innovators and payment networks can accelerate product development cycles and broaden distribution footprints. Collaborative ventures can include co-branded gift card launches, API integrations for bulk B2B ordering, and loyalty program cross-promotions.

Given the tariff challenges, procurement teams should explore alternative manufacturing hubs and hybrid cloud infrastructures to minimize exposure to import duties. Implementing distributed ledger technologies for supply chain transparency can further optimize cost structures and enhance resilience against policy shifts. Concurrently, data governance strategies must evolve to ensure regulatory compliance across jurisdictions, particularly concerning privacy mandates in Europe and emerging frameworks in the Middle East.

Finally, harnessing advanced analytics to monitor redemption patterns will reveal underutilized balance segments and inform targeted reactivation campaigns. By aligning digital gift card initiatives with broader loyalty and rewards programs, businesses can create integrated ecosystems that boost customer lifetime value, streamline marketing spend, and foster long-term loyalty.

Digital gift cards have transcended their transactional roots to become strategic catalysts for customer engagement, loyalty, and revenue diversification. As technology continues to evolve, industry leaders who embrace personalization, omnichannel integration, and robust security will unlock new avenues for growth. Navigating the complexities of tariffs, regulatory environments, and changing consumer behaviors demands agility, cross-functional collaboration, and data-driven decision-making.

By synthesizing insights from market segmentation, regional dynamics, and competitive positioning, organizations can craft targeted strategies that resonate with diverse end users-from large enterprises seeking scalable corporate solutions to individuals pursuing seamless last-minute gifting.

Ultimately, the brands that achieve sustained success will be those that treat digital gift cards not merely as standalone products, but as integral components of holistic customer journeys, driving repeat engagement, enhancing brand equity, and open doors to future innovation.

Ready to gain deeper strategic insights into the digital gift card landscape? Reach out to Ketan Rohom, Associate Director, Sales & Marketing, to secure access to the full market research report. Leverage expert analysis on segmentation, regional trends, and leading players to inform your next strategic move and stay ahead in this rapidly evolving market.