The Numbers Behind Gift Cards: Market Size and Growth Trends in 2025

Introduction

Gift cards have dramatically reshaped how consumers gift and businesses engage customers. From humble beginnings as simple store credit, gift cards have evolved into a multibillion-dollar global industry powering retail and corporate rewards alike.

At The Reward Store, we’ve seen this transformation firsthand—helping businesses and consumers alike leverage the full power of gift cards. This post dives deep into the numbers behind gift cards through a case study lens, exploring their past, present, and future to offer actionable insights.

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Origins and Early Market Growth

Early Origins: Store Credit and Paper Vouchers

Gift cards began in the late 20th century as simple store credits or paper vouchers redeemable at a single retailer. Initially introduced by department stores and specialty shops, these “gift certificates” provided an alternative to cash and traditional gifts.

A key early mover was Blockbuster, which in the 1990s popularized plastic gift cards redeemable in-store, creating the blueprint for the modern gift card.

The Rise of Plastic Gift Cards

By the early 2000s, plastic gift cards became widely adopted across retail. The flexibility and branded look offered retailers a marketing tool that encouraged repeat visits and increased basket size.

• According to industry data, the U.S. gift card market alone was worth approximately $100 billion by 2005. (Source: Mercator Advisory Group)
  
  
• Retailers like Starbucks and Best Buy were pioneers, integrating gift cards into loyalty programs and promotional campaigns.
  
  

Challenges of the Early Market

Despite their success, early gift cards had limitations:

• Physical cards were prone to loss or theft.
  
  
• Redemption was limited to stores or POS systems.
  
  
• Limited customization options made cards less personal.
  
  

Gift Cards Digital Transformation

The biggest shift in recent years has been the move from physical to digital gift cards. The rise of smartphones, e-commerce, and digital wallets changed how consumers buy, send, and redeem gift cards.

• In 2025, digital gift cards account for over 60% of total market share globally. (GlobeNewswire Report 2025)
  
  
• The global gift card market is valued at $614.7 billion and growing at a CAGR of 8.5%.

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The Reward Store’s Role in the Digital Shift

At The Reward Store, we embraced the digital transformation early by:

• Offering an extensive catalog of digital gift cards from leading brands.
  
  
• Integrating gift cards with mobile wallets such as Apple Pay and Google Pay.
  
  
• Enabling instant delivery via email or SMS, perfect for last-minute gifting.
  
  
• Providing APIs for businesses to automate gift card incentives and employee rewards.
  
  

This approach helped The Reward Store grow rapidly, serving thousands of consumers and hundreds of businesses with scalable, secure gift card solutions.

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Corporate Gifting and Incentives

Corporate gifting has become a major driver of growth:

• Companies increasingly use gift cards to reward employees, motivate sales teams, and retain customers.
  
  
• Bulk purchases via platforms like The Reward Store allow businesses to customize cards and track redemption easily.
  
  
• According to a survey by Incentive Research Foundation, 79% of companies use gift cards in their employee incentive programs.
  
  

Consumer Behavior Trends

• Gift cards are favored for their convenience and flexibility; 70% of consumers report purchasing gift cards during holidays or special occasions.
  
  
• The pandemic accelerated digital adoption as consumers sought contactless gift solutions.
  
  

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The Future of Gift Cards

Blockchain and Cryptocurrency Gift Cards

• Blockchain technology promises enhanced security, fraud prevention, and transparency.
  
  
• Crypto-backed gift cards are beginning to enter the market, offering new flexibility.
  
  
• The Reward Store is actively exploring blockchain integration to future-proof our offerings.
  
  

Personalization and AI-Driven Customization

• Future gift cards will leverage AI to personalize designs and gift suggestions.
  
  
• Dynamic offers embedded within gift cards will increase redemption rates and customer engagement.
  
  

Expansion into Emerging Markets

• Asia-Pacific, Latin America, and Africa present significant untapped potential.
  
  
• Growing smartphone penetration and e-commerce infrastructure will drive adoption.
  
  
• The Reward Store is expanding partnerships with local brands to capture these markets.
  
  

Predictive Growth Projections

Analysts predict:

• The global gift card market will surpass $1 trillion by 2030, with digital gift cards comprising 75%.
  
  
• Corporate incentives and rewards will make up 40% of total sales.
  
  
• Mobile wallet integrations will become standard.
  
  

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Why Partner with The Reward Store?

• Proven track record of innovation and market leadership.
  
  
• Broad inventory including major retail, restaurant, entertainment, and specialty brand gift cards.
  
  
• Advanced digital infrastructure supporting instant delivery, bulk orders, and loyalty integrations.
  
  
• Expert customer support and flexible customization options.
  
  

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Conclusion

Gift cards have come a long way—from simple paper vouchers to a $600+ billion global market driving retail sales, corporate rewards, and personalized gifting. The digital revolution and emerging technologies are set to accelerate growth further, creating exciting opportunities for businesses and consumers.

By understanding the past, harnessing the present, and preparing for the future, companies and consumers can unlock the full potential of gift cards and with The Reward Store as your trusted partner, you’re equipped to thrive in this booming industry.

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