Report Overview

India Gift Card and Incentive Card Market – Industry Trends & Forecast Report, 2030

India Gift Card and Incentive Card Market size was estimated at USD 36 billion in 2023. During the forecast period between 2024 and 2030, India Gift Card and Incentive Card Market size is projected to grow at a CAGR of 12.1% reaching a value of USD 83.2 billion by 2030. Prominent drivers of the market include the country's strong gifting culture, increased digital adoption, and the growth of the e-commerce sector. Gifting holds significant cultural value in India, and the trend towards gift cards reflects a shift towards modern, convenient options. These cards, preloaded with monetary value, can be used across various retail and e-commerce platforms, offering flexibility and ease of use. The rise in popularity among tech-savvy millennials and Gen Z, who prefer cashless transactions and customizable gifts, is boosting demand. The booming e-commerce industry further fuels market growth, with diverse sectors such as retail, travel, and food and beverage embracing gift cards. Companies like SonyLiv and Zee5 offer discounts through gift cards, while travel and food brands provide appealing deals to attract customers. The expansion is supported by the increasing acceptance of mobile payments and digital transactions across multiple industries.

Gift Card and Incentive Card – Overview

A gift card is a prepaid card that holds a specific monetary value, which can be redeemed for goods or services at participating retailers or online platforms. It provides recipients with the flexibility to choose their own items or experiences. An incentive card, similarly, is a prepaid card used as a reward or incentive, often in a corporate setting, to motivate or reward employees, customers, or partners. Both types of cards function on a closed-loop system (specific to certain retailers or networks) or an open-loop system (usable anywhere that accepts major credit cards).

India Gift Card and Incentive Card Market

Growth Drivers

Deepening Smartphone Penetration across India

The expansion of the Gift Card and Incentive Card Market in India is intricately tied to the rising penetration of smartphones. As mobile devices become increasingly prevalent, they are transforming the way consumers purchase and utilize gift cards, enhancing both accessibility and efficiency. The proliferation of mobile apps and digital wallets now allows consumers to easily buy, store, and redeem gift cards directly from their smartphones. The technological shift has significantly boosted the convenience of gift card transactions, appealing particularly to tech-savvy millennials and Gen Z who favor cashless and mobile-friendly solutions. The integration of mobile payment systems, such as Samsung Pay, further amplifies this trend by simplifying transaction processes and boosting the attractiveness of gift cards in the digital era. For instance, gift card provider Qwikcilver is leveraging the surge in smartphone usage to broaden its market presence in India. The company targets a substantial increase in its gross merchandise value (GMV), from INR 2,500 crore in 2016 to INR 6,500 crore in 2017. By collaborating with mobile payment systems like Samsung Pay, Qwikcilver enhances transaction efficiency and user accessibility, facilitating gift card redemptions through NFC and MST technology. This strategic integration supports Qwikcilver’s efforts to engage tech-savvy consumers and drive the adoption of gift cards across various sectors, including music streaming and healthcare.

Challenges

Security and Privacy Concerns

Security concerns pose significant challenges to the growth of the Indian gift card and incentive card market. As the market expands, the risk of fraud and cyber-attacks has increased, making both consumers and businesses wary. Issues such as unauthorized access to gift card information and the potential for phishing scams undermine trust in these financial products. The lack of robust security measures and the vulnerability of digital platforms exacerbate these risks, leading to hesitancy among consumers to fully embrace gift cards. Consequently, this caution impacts market growth, as companies must invest heavily in advanced security technologies and protocols to address these concerns and build consumer confidence. Despite the promising potential of the gift card sector, the ongoing security challenges remain a significant barrier to its expansion in India.

Impact of Escalating Geopolitical Tensions on India Gift Card and Incentive Card Market

Escalating geopolitical tensions among countries across regions could have a significant impact on the growth of India Gift Card and Incentive Card Market. Such tensions can disrupt global supply chains, affecting the availability of crucial technology and payment systems for gift card operations. Additionally, instability can lead to currency fluctuations, complicating transactions and pricing strategies. As a result, companies in this market may encounter increased costs and operational challenges, potentially causing delays and diminishing market confidence. These factors collectively constrain the growth of the Gift Card and Incentive Card Market in India.

India Gift Card and Incentive Card Market

Segmental Coverage

India Gift Card and Incentive Card Market – By Card Type

By card type, India Gift Card and Incentive Card Market is bifurcated into Closed-Loop Card and Open-Loop Card segments. The open-loop card segment holds a higher share in India Gift Card and Incentive Card Market by card type. Driven by increased internet access, smartphone usage, and e-commerce growth, open-loop gift cards, such as those offered by Ongo, are becoming increasingly popular. These cards, accepted across various major networks like RuPay, Mastercard, and Visa, provide users with flexibility and convenience, enhancing their appeal over closed-loop alternatives. The rise of open-loop cards is transforming the gifting landscape in India, offering greater versatility, ease of use, and personalization. This trend reflects a shift towards more adaptable and accessible digital payment solutions in the gifting sector.

India Gift Card and Incentive Card Market – By Consumer

Based on consumer, India Gift Card and Incentive Card Market is bifurcated into Individual and Corporate segments. The corporate segment holds a higher share in India Gift Card and Incentive Card Market by consumer. In India, the corporate sector is increasingly dominating the gift card and incentive card market. This shift is evident as corporate entities and digital platforms intensify their efforts to offer innovative gift card solutions. Platforms like the Open Network for Digital Commerce (ONDC) are introducing versatile products, such as the ONDC Network Gift Card, which cater to a wide range of consumer preferences. This trend is particularly pronounced during festive seasons when gift card sales peak. The growing presence of corporate offerings underscores their significant role in shaping consumer behavior and market dynamics in the gift card sector.

India Gift Card and Incentive Card Market – By Distribution Channel

By distribution channel, India Gift Card and Incentive Card Market is split into Online and Offline segments. The online segment holds a higher share in India Gift Card and Incentive Card Market by distribution channel. The increase in internet and smartphone penetration has led to a rise in online shopping, particularly among younger consumers who favor mobile transactions. This shift is expected to be a major catalyst for the growth of digital gift cards over the next four to eight quarters. Digital gift cards are becoming increasingly popular in sectors such as hospitality and spa services, with many restaurants utilizing them to reward loyal customers. For businesses, gift cards represent a strategic tool for driving sales, meeting targets, and maintaining a steady cash flow from repeat customers. The surge in the market is largely attributed to the growing use of digital technology in India.

India Gift Card and Incentive Card Market – By Spend Category

On the basis of spend category, India Gift Card and Incentive Card Market is divided into E-commerce & Departmental Stores, Restaurants & Bars, Supermarket, Hypermarkets & Convenience Stores, and Entertainment & Gaming, Specialty Stores, and Other (including Travel and Health & Wellness) segments.

India Gift Card and Incentive Card Market – By Region

The in-depth research report on India Gift Card and Incentive Card Market covers the market in the country’s major regions: North India, South India, East India, and West India regions.

Competitive Landscape

Major players operating in India Gift Card and Incentive Card Market include EbixCash, QwikCilver, LivQuik, IGP, eVoucher India, Woohoo, Zingo, and GyFTR. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In December 2023 - Fintech startup Juspay announced its plans to expand its operations by developing a full-stack payment gateway that will support card, wallet, and UPI transactions. Backed by SoftBank and with ‘in-principle’ approval from the Reserve Bank of India (RBI), Juspay aims to transition from a tech provider to a comprehensive payments platform. The company plans to focus on B2B payments and collaborate with initiatives like OCEN and ONDC, while also exploring opportunities in the US market.

Scope of the Report

By Card Type

• Closed-Loop Card

• Open-Loop Card

By Consumer

• Individual

• Corporate

By Distribution Channel

• Online

• Offline

By Spend Category

• E-commerce & Departmental stores

• Restaurants & Bars

• Supermarkets

• Hypermarkets & Convenience Stores

• Entertainment & Gaming

• Specialty Stores

By Region

• North India

• South India

• East India

• West India

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. India Gift Card and Incentive Card Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. E-commerce boom
         2. Increased smartphone penetration
         3. Shifting consumer preferences
         4. Demand for cash alternatives
      2. Restraints
         1. Limited acceptance
         2. Security concerns
      3.  Opportunities
         1. Corporate gifting
         2. Technological innovation
      4. Challenges
         1. High fees
         2. Lack of transparency
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. India Gift Card and Incentive Card Market: Marketing Strategies
5. India Gift Card and Incentive Card Market: Pricing Analysis
6. India Gift Card and Incentive Card Market Overview
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Card Type
         1. Closed-Loop Card
         2. Open-Loop Card
      2. By Consumer
         1. Individual
         2. Corporate
      3. By Distribution Channel
         1. Online
         2. Offline
      4. By Spend Category
         1. E-commerce & Departmental Stores
         2. Restaurants & Bars
         3. Supermarket
         4. Hypermarket & Convenience Store
         5. Entertainment & Gaming
         6. Specialty Store
         7. Others (Travel, Health & Wellness)
      5. By Region
         1. North India
         2. South India
         3. East India
         4. West India
7. North India Gift Card and Incentive Card Market
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Card Type
      2. By Consumer
      3. By Distribution Channel
      4. By Spend Category
8. South India Gift Card and Incentive Card Market
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Card Type
      2. By Consumer
      3. By Distribution Channel
      4. By Spend Category
9. East India Gift Card and Incentive Card Market
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Card Type
      2. By Consumer
      3. By Distribution Channel
      4. By Spend Category
10. West India Gift Card and Incentive Card Market
    1. Market Size & Forecast, 2019–2030
       1. By Value (USD Billion)
    2. Market Share & Forecast
       1. By Card Type
       2. By Consumer
       3. By Distribution Channel
       4. By Spend Category
11. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. India Gift Card and Incentive Card Company Market Share Analysis, 2023
    3. Competitive Benchmarking, By Operating Parameters
    4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
12. Impact of Escalating Geopolitical Tensions on India Gift Card and Incentive Card Market
13. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, and SWOT Analysis)

13. 9. Other Prominent Players
14. Key Strategic Recommendations
15. Research Methodology
    1. Qualitative Research
       1. Primary & Secondary Research
    2. Quantitative Research
    3.  Market Breakdown & Data Triangulation
       1.  Secondary Research
       2.  Primary Research
    4.  Breakdown of Primary Research Respondents, By Country
    5.  Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List of Figures

Figure 1       India Gift Card and Incentive Card Segmentation   

Figure 2       India Gift Card and Incentive Card Market Value Chain Analysis 

Figure 3       Company Market Share Analysis, 2023

Figure 4       India Gift Card and Incentive Card Market Size, By Value (USD Billion), 2019–2030          

Figure 5       India Gift Card and Incentive Card Market Share, By Card Type, By Value, 2019–2030  

Figure 6       India Gift Card and Incentive Card Market Share, By Consumer, By Value, 2019–2030  

Figure 7       India Gift Card and Incentive Card Market Share, By Distribution Channel, By Value, 2019–2030 

Figure 8       India Gift Card and Incentive Card Market Share, By Spend Category, By Value, 2019–2030 

Figure 9       North India Gift Card and Incentive Card Market Size, By Value (USD Billion), 2019–2030  

Figure 10     North India Gift Card and Incentive Card Market Share, By Card Type, By Value, 2019–2030 

Figure 11     North India Gift Card and Incentive Card Market Share, By Consumer, By Value, 2019–2030 

Figure 12     North India Gift Card and Incentive Card Market Share, By Distribution Channel, By Value, 2019–2030

Figure 13     North India Gift Card and Incentive Card Market Share, By Spend Category, By Value, 2019–2030

Figure 14     South India Gift Card and Incentive Card Market Size, By Value (USD Billion), 2019–2030  

Figure 15     South India Gift Card and Incentive Card Market Share, By Card Type, By Value, 2019–2030 

Figure 16     South India Gift Card and Incentive Card Market Share, By Consumer, By Value, 2019–2030 

Figure 17     South India Gift Card and Incentive Card Market Share, By Distribution Channel, By Value, 2019–2030

Figure 18     South India Gift Card and Incentive Card Market Share, By Spend Category, By Value, 2019–2030

Figure 19     East India Gift Card and Incentive Card Market Size, By Value (USD Billion), 2019–2030  

Figure 20     East India Gift Card and Incentive Card Market Share, By Card Type, By Value, 2019–2030 

Figure 21     East India Gift Card and Incentive Card Market Share, By Consumer, By Value, 2019–2030 

Figure 22     East India Gift Card and Incentive Card Market Share, By Distribution Channel, By Value, 2019–2030

Figure 23     East India Gift Card and Incentive Card Market Share, By Spend Category, By Value, 2019–2030 

Figure 24     West India Gift Card and Incentive Card Market Size, By Value (USD Billion), 2019–2030  

Figure 25     West India Gift Card and Incentive Card Market Share, By Card Type, By Value, 2019–2030 

Figure 26     West India Gift Card and Incentive Card Market Share, By Consumer, By Value, 2019–2030 

Figure 27     West India Gift Card and Incentive Card Market Share, By Distribution Channel, By Value, 2019–2030

Figure 28     West India Gift Card and Incentive Card Market Share, By Spend Category, By Value, 2019–2030

List of Tables

Table 1 India Gift Card and Incentive Card Market Size, By Value (USD Billion), 2019–2030

Table 2 India Gift Card and Incentive Card Market Size, By Card Type, By Value, 2019–2030

Table 3 India Gift Card and Incentive Card Market Size, By Consumer, By Value, 2019–2030

Table 4 India Gift Card and Incentive Card Market Size, By Distribution Channel, By Value, 2019–2030

Table 5 India Gift Card and Incentive Card Market Size, By Spend Category, By Value, 2019–2030

Table 6 North India Gift Card and Incentive Card Market Size, By Value (USD Billion), 2019–2030

Table 7 North India Gift Card and Incentive Card Market Size, By Card Type, By Value, 2019–2030

Table 8 North India Gift Card and Incentive Card Market Size, By Consumer, By Value, 2019–2030

Table 9 North India Gift Card and Incentive Card Market Size, By Distribution Channel, By Value, 2019–2030

Table 10      North India Gift Card and Incentive Card Market Size, By Spend Category, By Value, 2019–2030

Table 11      South India Gift Card and Incentive Card Market Size, By Value (USD Billion), 2019–2030

Table 12      South India Gift Card and Incentive Card Market Size, By Card Type, By Value, 2019–2030

Table 13      South India Gift Card and Incentive Card Market Size, By Consumer, By Value, 2019–2030

Table 14      South India Gift Card and Incentive Card Market Size, By Distribution Channel, By Value, 2019–2030

Table 15      South India Gift Card and Incentive Card Market Size, By Spend Category, By Value, 2019–2030

Table 16      East India Gift Card and Incentive Card Market Size, By Value (USD Billion), 2019–2030

Table 17      East India Gift Card and Incentive Card Market Size, By Card Type, By Value, 2019–2030

Table 18      East India Gift Card and Incentive Card Market Size, By Consumer, By Value, 2019–2030

Table 19      East India Gift Card and Incentive Card Market Size, By Distribution Channel, By Value, 2019–2030

Table 20      East India Gift Card and Incentive Card Market Size, By Spend Category, By Value, 2019–2030

Table 21      West India Gift Card and Incentive Card Market Size, By Value (USD Billion), 2019–2030

Table 22      West India Gift Card and Incentive Card Market Size, By Card Type, By Value, 2019–2030

Table 23      West India Gift Card and Incentive Card Market Size, By Consumer, By Value, 2019–2030

Table 24      West India Gift Card and Incentive Card Market Size, By Distribution Channel, By Value, 2019–2030

Table 25      West India Gift Card and Incentive Card Market Size, By Spend Category, By Value, 2019–2030

Table 26      EbixCash Company Overview

Table 27      EbixCash Financial Overview

Table 28      QwikCilver Company Overview

Table 29      QwikCilver Financial Overview

Table 30      LivQuik Company Overview

Table 31      LivQuik Financial Overview

Table 32      IGP Company Overview

Table 33      IGP Financial Overview

Table 34      eVoucher India Company Overview

Table 35      eVoucher India Financial Overview

Table 36      Woohoo Company Overview

Table 37      Woohoo Financial Overview

Table 38      Zingo Company Overview

Table 39      Zingo Financial Overview

Table 40      GyFTR Company Overview

Table 41      GyFTR Financial Overview