According to research from Persistence Market research there is a growing demand for gift cards among corporates and businesses which is a key factor
According to research from Persistence Market research there is a growing demand for gift cards among corporates and businesses which is a key factor driving the market from a current $307billion to an estimated $698 billion by 2024, and World over, the soaring popularity of gift cards as corporate incentives is being called ‘a key factor’ in the boost in the market.
The study suggests that this is driven by the proposition than they are more effective than cash for awarding achievers in organizations, offering the flexibility and versatility of cash, along with the ease of use. Furthermore, their worldwide acceptance is fueled by them acting as a memorable incentive for employees, thereby improving the work compensation.
Gift Cards ideal for marketing
The wide desirability of gift card programs among businesses, notably among retail stores and special-service businesses, as potential marketing tools helps them in improving brand awareness and attracting new customers, apart from boosting sales. The advent of electronic gift card has substantially reduced the options of fraud, which bodes well for the market.
Gift Cards set for global domination
Smart retailers are looking to capitalize on ‘vastly emerging opportunities’ from the advent e-commerce and m-commerce technologies, and entering into the gift card market, which has a current global valuation that exceeds US$307 Bn and is projected to expand at a CAGR of 10.79% from 2016 to 2024.
The gift card market is predicted to reach a worth of US$698 Bn by the end of 2024.
Open loop gift cards on rise
According to the study, the universally-accepted open loop-gift card dominates the global market and the segment is projected to rise at a robust CAGR of 20.7%. Their success has been attributed to their benefits such as near-universal acceptability across businesses and the versatility of options customers and merchants have with this card.
Where is the market going?
The predictions from the research state that the ease-of-shopping brought about the wide popularity of m-commerce, coupled with the cheaper availability of internet plans, and the proliferation of mobile apps are crucial factors catalyzing the growth of various regional markets.
The advent on innovative features in gift cards is a key factor that is anticipated to unlock exciting opportunities for market players in various regions. The rise in discretionary spending on shopping across a burgeoning middle class of populations in various developing regions is a key trend accentuating the overall market. The recent introduction of gift cards in lottery games has enhanced the flexibility and offered the combined benefits of entertainment and convenience, thereby revving up revenue and reaching new customers. This is a prominent trend observed in North America gift card market.