Why Are Gift Card Market Leaders Thriving in 2024–2025?

The Gift Card Market is booming, with a global valuation projected to reach USD 2097.13 million by 2030 at an 8.3% CAGR. Leading players like Amazon, Walmart, Apple, Blackhawk Network, and InComm Payments are driving this growth through innovative strategies. 

But what exactly are these companies doing to stay ahead? This blog dives into their 2024–2025 strategies, to uncover how they’re shaping the future of gifting.

What Drives the Gift Card Market’s Growth?

The gift card market thrives on convenience, flexibility, and evolving consumer preferences. Key drivers include:

• E-commerce surge: E-gift cards contain a fixed monetary value as assigned by the sender. As a versatile and convenient gifting option, gift cards can instantly be sent to anyone across the world via the click of a button. Online platforms like Amazon and Walmart boost digital gift card sales with seamless integration.

• Corporate adoption: Businesses use gift cards for employee rewards and customer loyalty programs.

• Personalization demand: Consumers prefer customizable gift cards for special occasions. It is exclusive and makes the gift extra special.

• Technological advancements: Integration with mobile wallets like Google Wallet enhances accessibility, thanks to NFC technology. NFC passes update in real-time whenever a change is made in your ticketing system. Whether it’s a cancellation, exchange, or resale, attendees receive instant updates directly in their mobile wallet.

How Are Major Players Positioning Themselves?

Amazon: Leveraging E-commerce Dominance

Amazon, a titan in retail, uses its vast e-commerce platform to dominate the gift card market. One of the key advantages of digital Amazon gift cards is the element of instant gratification. Unlike physical merchandise catalogs, where participants must browse through, select items, wait for the order to process, and then wait even longer for shipping, digital gift card scan be delivered instantly via custom branded email. In today’s fast-paced world, people expect instant rewards, and digital gift cards deliver that. Strategies include:

• Instant delivery: Digital gift cards are emailed instantly, appealing to last-minute shoppers.

• Customizable options: Personalized designs and messages enhance user experience.

• Promotional tie-ins: Discounts and cashback offers during holiday seasons drive sales. Amazon's seasonal offers are a true game-changer. Exclusive gift cards deal perfectly with festive shopping sprees. Whether it’s Christmas, Diwali, or Black Friday, there's always a special Amazon gift card offer waiting to amplify celebrations.

Walmart: Blending Physical and Digital Channels

Walmart emphasized its omnichannel approach, combining in-store and online gift card sales. Numerous improvements to the tune of $1.2 billion have recently been made to its e-commerce program, as the discount compartment store focuses its efforts on the omni-channel shopper. Key tactics:

• Online discounts: Cashback and bundle deals on digital gift cards during peak seasons.

• Loyalty integration: Gift cards tied to Walmart+ membership rewards. Walmart cards offer 5% back on in-store purchases when using Walmart Pay for the first 12 months after approval (after, earn 2%).

 Apple: Targeting Tech-Savvy Consumers

Apple’s gift cards, usable across its App Store, iTunes, and retail stores, cater to millennials and Gen Z. A recent study in the US showed that 73.1% of Gen Z consumers with Apple Pay installed used it to make in-store purchases, notably higher than the 52% for both millennials and Generation X users. Strategies include:

• Mobile wallet integration: Seamless use with Apple Pay for instant purchases. Users have the simplicity of having all cards stored in one place and paying by just tapping phone against a reader. There is also no longer a spend limit, unlike contactless cards.

• Cross-platform utility: Gift cards valid for apps, music, and hardware purchases.

Blackhawk Network: Expanding B2B Solutions

Blackhawk Network, a leading gift card distributor, focuses on corporate clients. BHN can help make gift card program an important part of businesses that drive revenue and power promotions. Strategies include:

• B2B programs: More than 400 popular brands trust BHN to power their digital gifting programs. From expanding program into B2B markets to making better use of gift cards for customer care, the BHN digital gifting platform can grow business.

• Open-loop cards: Partnerships with Visa for flexible, multi-merchant cards. BHN’s proprietary technology, Tap to Pay Visa Gift Cards are the latest advancement in its BHN Protect™ fraud prevention program. The company has leveraged over 20 years of gift card experience to curate a suite of advanced fraud prevention tactics and technologies.

• Analytics-driven personalization: Omnichannel award winning cardholder services powered by advanced artificial intelligence, ensuring responsive and efficient interactions for businesses and their customers. This AI-driven approach boosts service efficiency, enhancing customer satisfaction and loyalty.

InComm Payments: Innovating with Technology

InComm Payments emphasizes technological innovation, integrating gift cards with mobile payment systems. Key strategies:

• Fraud prevention: Commits to security solutions, backed by sustained investment in advanced fraud prevention solutions, which includes leveraging new technologies, packaging techniques, monitoring systems and other security practices.

• Global expansion: NCR Atleos (NYSE: NATL), a leader in expanding self-service financial access, announced that InComm Payments has adopted its ReadyCode API. This integration enables InComm Payments’ fintech and banking partners to offer cardless cash pickup at over 23,000 ATMs nationwide:

  • InComm Payments provides end-to-end payment and fintech solutions across sectors such as retail, healthcare, transit, and digital currencies. By supporting omnichannel transactions and alternative payment methods, the company enhances commerce experiences globally.

  • Through Atleos’ ReadyCode, consumers can securely withdraw cash using a simple code delivered via familiar applications. The solution is active at ATMs in major retail locations across 40+ states, covering over 70 top U.S. population centers.

What Role Does Technology Play in Their Strategies?

Technology is a game-changer for gift card market leaders. Here’s how they’re using it:

• Mobile wallets: Apple, Walmart, and InComm integrate gift cards with Apple Pay and Google Wallet for seamless transactions. HyperGift has launched a new feature enabling seamless integration of digital gift vouchers with Apple Wallet and Google Wallet. This enhancement allows guests to instantly add and access their vouchers directly from their smartphones, eliminating the need for printed copies or email searches. The update streamlines the guest experience with quick, scannable barcodes for fast redemption, while also positioning properties as forward-thinking and guest-centric. This modern upgrade enhances both operational efficiency and customer satisfaction.

• AI-driven personalization: AI is fast becoming an essential component for targeted, personalized customer experiences, with nearly 50% of consumers using AI to recommend products, search for the best deals and deliver personalized gift suggestions. Blackhawk uses AI to recommend gift cards based on consumer preferences, boosting loyalty. The sale of U.S. gift cards is projected to increase 10% this year, compared to 2024.

• Blockchain for security: InComm’s blockchain adoption reduces fraud risks, a critical concern in digital transactions. It deploys rigorous fraud prevention measures throughout the life cycle of the gift card experience, from the physical security of the card to activation and all the way through redemption. 

Next Steps: Actionable Takeaways for Businesses

To capitalize on the gift card market’s growth, businesses can adopt these strategies:

• Integrate with mobile wallets: Partner with platforms like Apple Pay or Google Wallet to enhance accessibility.

• Leverage data analytics: Use AI to offer personalized gift card recommendations, increasing customer loyalty.

• Focus on digital formats: Prioritize e-gift cards for instant delivery and sustainability, aligning with consumer preferences.

• Expand B2B offerings: Develop corporate gifting programs to tap into the growing B2B segment.

• Ensure security: Implement blockchain or similar technologies to combat fraud and build consumer trust.

Final Thoughts: 

The gift card market’s leading players are thriving by embracing technology, personalization, and regional opportunities. By adopting their strategies, businesses can tap into this market and drive growth through 2025 and beyond.

About the Author

Sneha Chakraborty is a seasoned SEO Executive and Content Writer with over 4 years of experience in the digital marketing space, bringing a strong command of online visibility strategies and a keen insight into the evolving digital landscape. She specializes in enhancing online visibility and user engagement through data-driven strategies and creative content solutions. Sneha is passionate about translating complex digital concepts into accessible content for a wide audience. Outside of work, she enjoys reading, sketching, and exploring the outdoors through nature photography. The author can be reached at [email protected].