What started as an alternative to cash and cheques has grown into a billion dollar industry. The giftcards market is among the fastest growing retail segments in ecommerce. In fact, the giftcards market has proven to be an exploding success and is projected to soar higher through 2022. Given that there is more knowledge and people now understand that giftcards are a good alternative to cash, it’s apparent that we’re giving more giftcards as gifts and people want to spend their giftcard balances at a faster rate than in previous years. There are three main factors contributing to the expansion of this market:
- Consumer spending habit
The primary factor is the growing number of consumers who have developed a high demand for giftcards accompanied by the increasing acceptance of giftcards by retailers. Betterstill is the increasing ease with which card issuers integrate the digital cards into payment systems for seamless transactions on the go.
- Development of e-giftcards
Since the emergence of e-giftcards, the purchasing ability of buyers has been enhanced a great deal. The adoption of innovative payment methods has swayed the buyer behaviour and their approach towards giftcard solutions.
- Growth in the retail industry
Since their introduction in the 70s and their rising popularity in the 90s and 2000s, giftcards have always been a mainstay of the retail industry. They have become a growing trend and will continue to see growth with the introduction of E-giftcards. E-giftcards will boost sales and growth in the retail industry with companies competing for market value using this low-cost incentive.
The giftcard market is likely to gain momentum in the coming years as consumers continue to look at retail value propositions that can save them time, effort and money. The emergence of new technologies will help advance the adoption of giftcards boosting their demand.
