India Digital Gift Card Market: Current Analysis and Forecast (2024-2032)
Emphasis on Card Type (Open-Loop Gift Cards, Closed-Loop Gift Cards); Application (Retail & E-commerce, Corporate & Employee Benefits, Hospitality & Travel, Others); Purchase Mode (Online, Offline); Region
India Digital Gift Card Market Size & Forecast
The India Digital Gift Card market was valued at USD 9,150 Million in 2023 and is expected to grow at a strong CAGR of around 16% during the forecast period (2024-2032) owing to the rising digital payment adoption, increasing corporate gifting culture.
India Digital Gift Card Market Analysis
A digital gift card is a virtual prepaid card that can be used to make purchases, and they are specific to some brands, retailers, or platforms. It is sent through email, SMS, or applications in mobile phones and can be encoded or redeemed from physical stores. The concept of the digital gift card is a modern and safe way of gifting that doesn’t require actual cards. They are used for single transactions such as personal gifts, corporate gifts, and promotions and, hence, are incredible components of the digital payment system. These devices are popular due to their flexibility, and ease of use, especially because they have become acceptable in almost all forms of business.
There are various strategies India-based companies are embracing for growth, including omnichannel distribution, cooperation with Fintechs, and personalization through AI. Leveraging the e-commerce market, these products are yet bundled by Amazon or Flipkart and the fintech, passed on as a simple payment method in the digital wallets. Corporate gifting has become increasingly diverse, with Pine Labs and GyFTR focusing on providing corporate gifting for employees and gifting for loyalty programs. Further, several Tie-ups with SMEs and local merchants are the reasons for expanding accessibility in Tier 2 & 3 cities.
India Digital Gift Card Market Trends
This section discusses the key market trends that are influencing the various segments of the India Digital Gift Card market, as identified by our team of research experts.
Contactless & QR Code-Based Gift Cards Transforming Industry
The Contactless & QR Code-Based Gift Card trend is increasing in India because of the accelerated smart trend of digital payments and transactions. These gift cards are advantageous to consumers due to their convenience, ease of use, and convenience over more traditional types of gift retail rewards, and as more consumers use their mobile devices. E-commerce companies, retail shops, and Fintech players are the major contributors to QR-based gift card usage in mobile wallets and UPI apps for purchase. Pine Labs, Amazon Pay, and Paytm are some firms that are leading in encouraging consumers to use this technique since they eliminate the usual scanning process. This tendency will likely grow further with the emphasis of businesses on the improvement of the user experience, and the minimization of the usage of the cards. On May 30, 2024 – Google launched its much-awaited Google Wallet™ app in India. Leading fintech company Pine Labs today shed more light on the close collaboration with Google Wallet to enable a seamless integration of Gift Cards on the product.
The 'power of choice' associated with e-gifting appeals to young consumers and therefore brands in India are constantly looking to cater to this important and growing consumer base. Many exciting Gift Card use cases such as issuing refunds, credit notes, and promotional offers have emerged as growth drivers that offer brands the opportunity to foster customer loyalty and build long-lasting engagement.
North India Leads the Market
North India is the largest contributor to the digital gift card market due to its high level of urbanization and increasing use of digital payment systems. Delhi /NCR, Chandigarh, and Noida have many corporate companies, so these regions have slightly higher requirements for corporate gifting and incentives as well as the Christmas season. The targeted population of the region has easy access to technology, and purchasing power is increasing, making the use of digital gifting solutions possible. Adding to this, a company offers penetration through partnerships with retailers and businesses. Also, the advancement of things such as the use of digital wallets and other firms in the fintech industry has enhanced integration of the transactions, and this has made the use of the gift cards more appealing.
In October 2023, OmniCard added yet another feather in its cap being the first FinTech company to issue exclusive ONDC Corporate Gift Cards thereby ushering in a new digital era of corporate gifting, rewards, and employee engagement.
India Digital Gift Card Industry Competitive Landscape
The India Digital Gift Card market is competitive and fragmented, with the presence of several country market players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, and mergers and acquisitions.
Top Digital Gift Card Companies in India
Some of the major players operating in the market include Amazon.com, Inc., Flipkart Internet Private Limited, Pine Labs, YOUGotaGift.com Ltd., IGP.com, GyFTR (Vouchagram), HDFC Bank Ltd., GiftPay (Unified Incentives Services Private Limited), evoucherindia.in, Zingoy Rewards Pvt. Ltd (Parity Cube Private Limited).
India Digital Gift Card Market News
In August 2024, LazyPay, the credit service by PayU, India’s leading digital financial services provider, announced the launch of its latest product line – Gift Cards, a comprehensive one-stop solution for gift vouchers. LazyPay’s Gift Cards offer vouchers from 150+ popular brands across multiple categories including shopping, travel, fashion, food, electronics, groceries, and more.
India Digital Gift Card Market Report Coverage
Report Attribute | Details |
Base year | 2023 |
Forecast period | 2024-2032 |
Growth momentum | Accelerate at a CAGR of 16% |
Market size 2023 | USD 9,150 Million |
Regional analysis | North India, South India, East India, and West India |
Major contributing region | West India is expected to grow at the highest CAGR during the forecasted period. |
Companies profiled | Amazon.com, Inc., Flipkart Internet Private Limited, Pine Labs, YOUGotaGift.com Ltd., IGP.com, GyFTR (Vouchagram), HDFC Bank Ltd., GiftPay (Unified Incentives Services Private Limited), evoucherindia.in, Zingoy Rewards Pvt. Ltd (Parity Cube Private Limited) |
Report Scope | Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Demand and Supply Side Analysis; Competitive Landscape; Company Profiling |
Segments Covered | By Card Type; By Application; By Purchase Mode; By Region |
Reasons to buy this report:
The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
The report presents a quick review of overall industry performance at one glance.
The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolios, expansion strategies, and recent developments.
Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
The study comprehensively covers the market across different segments.
Deep dive regional level analysis of the industry.
Customization Options:
The India Digital Gift Card market can further be customized as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs, hence feel free to connect with us to get a report that completely suits your requirements.
Table of Contents
Research Methodology for the India Digital Gift Card Market Analysis (2024-2032)
Analyzing the historical market, estimating the current market, and forecasting the future market of the India Digital Gift Card market were the three major steps undertaken to create and analyze the adoption of India Digital Gift Card in major states. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the India Digital Gift Card market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry, about detailed methodology is explained below:
Analysis of Historical Market Size
Step 1: In-Depth Study of Secondary Sources:
A detailed secondary study was conducted to obtain the historical market size of the India Digital Gift Card market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.
Step 2: Market Segmentation:
After obtaining the historical market size of the India Digital Gift Card market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments are included in the report as card type, application, purchase mode, and regions. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.
Step 3: Factor Analysis:
After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the India Digital Gift Card market. Further, we conducted factor analysis using dependent and independent variables such as the card type, application, purchase mode, and regions of the India Digital Gift Card market. A thorough analysis was conducted of demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in India's Digital Gift Card market sector across the country.
Current Market Size Estimate & Forecast
Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the India Digital Gift Card market, and market shares of the segments. All the required percentage shares split and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.
Estimation & Forecasting: For market estimation and forecast, weights were assigned to varied factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the top-down/bottom-up approach were applied to arrive at the market forecast 2032 for different segments and sub-segments across the major markets in India. The research methodology adopted to estimate the market size encompasses:
The industry’s market size, in terms of revenue (USD) and the adoption rate of the India Digital Gift Card market across the major markets domestically
All percentage shares, splits, and breakdowns of market segments and sub-segments
Key players in the India Digital Gift Card market regarding products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market.
Market Size and Share Validation
Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.
Split of Primary Participants in Different Regions
Market Engineering
The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the India Digital Gift Card market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of the card type, application, and purchase mode, and regions in the India Digital Gift Card market.
The main objective of the India Digital Gift Card Market Study
The current & future market trends of the India Digital Gift Card market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a state level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:
Analyze the current and forecast market size of the India Digital Gift Card market in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments.
Segments in the study include areas of card type, application, purchase mode, and regions.
Define and analyze the regulatory framework for the India Digital Gift Card
Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry.
Analyze the current and forecast market size of the India Digital Gift Card market for the major region.
Major Regions in India studied in the report include North India, South India, East India, and West India.
Company profile of the India Digital Gift Card market and the growth strategies adopted by the market players to sustain in the fast-growing market.
Deep dive state-level analysis of the industry
Frequently Asked Questions FAQs
Q1: What is the current market size and growth potential of the Indian Digital Gift Card market?
The India Digital Gift Card market was valued at USD 9,150 Million in 2023 and is expected to grow at a CAGR of ~16% during the forecast period (2024-2032).
Q2: What are the driving factors for the growth of the India Digital Gift Card market?
The increased usage of UPI, mobile wallets, and fintech platforms, the surge in online shopping, increased spending on digital gift options, and companies offering digital gift cards as incentives and rewards are driving demand for the Indian digital gift card market.
Q3: Which segment has the largest share of the India digital gift card market by card type?
The closed-loop gift cards segment has the largest share of the India digital gift card market by card type.
Q4: What are the trends in the India Digital Gift Card market?
Rising demand for contactless & QR code-based gift cards is a major trend in the market.
Q5: Which region will dominate the India Digital Gift Card market?
North India is expected to dominate the market.
Related Reports
Customers who bought this item also bought
India Motor Insurance Market: Current Analysis and Forecast (2024-2032)
Emphasis on By Motor Insurance Type (Own Damage, Third Party); By Application (Commercial (Light Weight Four-Wheeler, Heavy Weight Four-Wheeler, Other Commercial Vehicle), Private Motor Vehicles), By Distribution Channels (Individual Agents, Brokers, Banks, Others); and Regions (North, East, West, and South)
June 28, 2024
