U.S. Gift Card Market Size, Share, and Trends Analysis Report – Industry Overview and Forecast to 2032

U.S. Gift Card Market Size

• The U.S. gift card market size was valued at USD 342.95 Billion in 2024 and is expected to reach USD 886.23 Billion by 2032, at a CAGR of 12.60% during the forecast period
• The market growth is largely fuelled by the rising adoption of digital payments, shifting consumer preferences toward contactless transactions, and growing e-commerce penetration across the U.S. Gift cards are increasingly being used as convenient, flexible, and secure payment methods for both personal gifting and corporate rewards—key factors driving the expansion of the U.S. Gift Card Market
• Furthermore, advancements in digital gift card platforms, integration with mobile wallets, and the increasing use of loyalty and promotional strategies by retailers are accelerating gift card issuance across various sectors, including retail, food services, entertainment, and financial services. These converging factors are significantly boosting the growth and competitiveness of the U.S. Gift Card Market

U.S. Gift Card Market Analysis

• Gift Card systems are increasingly integral to the U.S. healthcare landscape, particularly for patients with end-stage renal disease (ESRD), as they allow individuals to manage treatment from the comfort of home. These systems are valued for their ability to reduce hospital dependency, lower overall healthcare expenditures, and significantly enhance patient convenience and lifestyle. Their flexible scheduling options and positive impact on quality of life have led to widespread adoption in both urban and rural areas
• The accelerating demand for Gift Card systems in the U.S. is primarily driven by the growing prevalence of chronic kidney disease (CKD), rising awareness around home-based renal care solutions, and ongoing technological advancements in compact, user-friendly dialysis equipment. Additionally, growing insurance coverage for home treatments and favourable policies by Medicare and private providers are fueling market expansion
• The U.S. dominated the gift card market in North America, securing the largest revenue share of 46.3% in 2024. This dominance is attributed to its robust healthcare infrastructure, the presence of industry leaders such as Fresenius Medical Care and Baxter International, and increased adoption of decentralized care models post-COVID-19. Home dialysis gained traction as patients and providers sought safer, more flexible treatment options amid pandemic disruptions
• The Retail segment dominated the gift card market with a market share of 63.9% in 2024, fueled by rising demand during seasonal sales, promotions, and gifting occasions such as holidays, birthdays, and anniversaries

Report Scope and U.S. Gift Card Market Segmentation

U.S. Gift Card Market Trends

Enhanced Convenience Through Remote Monitoring and Smart Integration – U.S. Gift Card Market Trend

• A significant and growing trend in the U.S. gift card market is the integration of remote patient monitoring and smart connectivity features into home-based dialysis systems. This evolution is transforming how patients and providers approach at-home treatment, improving efficiency, safety, and adherence while reducing the need for hospital-based interventions
• For instance, Baxter’s Sharesource remote monitoring platform enables healthcare providers to track patient treatments in real time, adjust prescriptions remotely, and intervene promptly if complications arise. This allows for personalized care planning and minimizes the risk of treatment-related complications such as infection or underdialysis
• Remote monitoring tools help reduce the burden on caregivers and support a more consistent treatment regimen, especially for elderly patients or those living in rural areas where access to clinics may be limited. These systems enhance communication between patients and nephrologists, improving care continuity and treatment outcomes
• Smart connectivity features—such as app-based treatment dashboards, remote data uploads, and automated reminders—are becoming common across home dialysis devices. These features help ensure timely therapy, accurate dosing, and provide patients with better visibility into their treatment progress
• Integration with secure digital health records (EHRs) also supports clinical decision-making by offering providers access to real-time treatment histories and alerts about missed sessions or equipment issues. This promotes proactive care and supports long-term health outcomes
• Companies like Fresenius Medical Care, Baxter International, and Outset Medical are pioneering innovations that prioritize ease of use, patient safety, and seamless clinical oversight, helping drive broader adoption across the U.S. healthcare system
• As home dialysis continues to gain traction in the U.S., the demand for remote-enabled Gift Card systems is projected to grow steadily—driven by policy support for decentralized care, improved system affordability, and the ongoing push for patient empowerment and independence in managing chronic conditions

U.S. Gift Card Market Dynamics

Driver

Growing Need Due to Rising Prevalence of Kidney Disease and Preference for At-Home Care

• The increasing prevalence of chronic kidney disease (CKD) in the U.S., combined with a growing preference for home-based medical treatments, is significantly driving the demand for Gift Card systems
• For instance, in February 2024, Outset Medical, Inc. announced expanded U.S. distribution of its Tablo Hemodialysis System for home use, which integrates patient-friendly touch-screen operation and real-time monitoring—making home dialysis more accessible and less intimidating for patients and caregivers
• As patients and healthcare providers seek more convenient and cost-effective treatment modalities, Gift Card offers a promising alternative to in-center care by enabling flexible scheduling, reducing travel burdens, and improving quality of life
• Furthermore, rising awareness campaigns by organizations such as the National Kidney Foundation and growing support from Medicare and private insurers for home-based dialysis have made these treatments more feasible for a larger patient base
• The shift toward decentralized healthcare delivery and increased investment in telehealth infrastructure are also contributing to a higher rate of adoption. The ability to monitor treatment remotely, combined with training programs offered by providers, is encouraging more patients to transition to home settings for long-term renal care

Restraint/Challenge

Limited Accessibility Due to Training Complexity and Upfront Equipment Expenses

• One of the major challenges facing the broader adoption of gift card in the U.S. is the complexity of training required for patients and caregivers to safely manage the procedure at home. Unlike in-center dialysis, home treatments require individuals to take on greater responsibility, which can be daunting without adequate support
• For instance, studies have shown that only a small percentage of dialysis patients opt for home treatment due to perceived risks and the need for comprehensive training—despite the long-term benefits
• In addition, while cost-effectiveness is realized over time, the initial cost of Gift Card machines, water treatment systems, and consumables remains a significant barrier, particularly for uninsured or underinsured patients
• Concerns around machine maintenance, emergency response readiness, and access to real-time medical support during home sessions also contribute to hesitation among patients and their families
• Addressing these concerns through enhanced patient education, simplified machine interfaces, telehealth-enabled support, and government or insurer subsidies will be essential for expanding the reach of Gift Card systems. Device manufacturers are also focusing on developing compact, user-friendly, and cost-effective machines that can better meet the needs of home users and expand market access

U.S. Gift Card Market Scope

The market is segmented on the basis of products, functional attribute, industry vertical, and merchant.

• By Products

On the basis of products, the U.S. gift card market is segmented into E-Gift cards and physical cards. The E-Gift Cards segment dominated the market with the largest revenue share of 58.2% in 2024, owing to the increasing popularity of digital payments, rapid smartphone penetration, and growing consumer preference for contactless gifting solutions.

The physical cards segment is expected to grow at the fastest CAGR of 7.5% from 2025 to 2032, driven by continued demand in traditional retail settings and among older demographics preferring tangible gifting formats.

• By Functional Attribute

On the basis of functional attribute, the U.S. gift card market is segmented into closed loop, universal accepted open loop, and E-Gifting. The Closed Loop segment held the highest revenue share of 44.7% in 2024, driven by strong retail partnerships, promotional offerings, and customer loyalty incentives tied to store-specific gift cards.

The Universal Accepted Open Loop segment is projected to grow at the fastest CAGR of 8.1% over the forecast period, due to increasing consumer demand for flexibility and ease of use across multiple platforms, both online and in-store.

• By Industry Vertical

On the basis of industry vertical, the U.S. gift card market is segmented into retail and corporate institutions. The Retail segment accounted for the largest market share of 63.9% in 2024, fueled by rising demand during seasonal sales, promotions, and gifting occasions such as holidays, birthdays, and anniversaries.

The corporate institutions segment is expected to grow at the fastest CAGR of 8.9% from 2025 to 2032, driven by the increasing use of gift cards in employee recognition programs, incentive schemes, and customer retention strategies.

• By Merchant

On the basis of merchant, the U.S. gift card market is segmented into restaurants, discount stores, coffee shops, departmental stores, grocery stores/food supermarkets, entertainment, and others. The restaurants segment held the largest revenue share of 26.4% in 2024, driven by high redemption rates, promotional bundling, and increasing demand for dining-related gifting.

The entertainment segment is projected to register the fastest CAGR of 9.2% during the forecast period, supported by the growing popularity of streaming services, gaming subscriptions, and experience-based gifting preferences among younger consumers.

U.S. Gift Card Market Share

The U.S. gift card market industry is primarily led by well-established companies, including:

• Tele-Pak Inc. (U.S.)
• Plastek Card Solutions, Inc. (U.S.)
• Card USA, Inc. (U.S.)
• Duracard (U.S.)
• eCard Systems (U.S.)
• Blackhawk Network (U.S.)
• Card Isle (U.S.)
• Tango Card, Inc. (U.S.)
• InComm Payments (U.S.)
• Under Armour, Inc. (U.S.)
• TransGate Solutions (U.S.)
• Walgreen Co. (U.S.)
• Sephora USA, Inc. (U.S.)
• Gyft, Inc. (U.S.)
• Givex Corporation (Canada)

Latest Developments in U.S. Gift Card Market

• In March 2025, Blackhawk Network reported a 12% year-over-year increase in e-gift card distribution volumes, driven by corporate incentive programs and seasonal demand. The company has strengthened its partnership ecosystem, enabling integration with major e-commerce and digital wallet platforms
• In April 2025, New Jersey enacted a state regulation requiring gift cards sold in grocery stores to feature secure packaging and anti-fraud warnings, to counter growing concerns of theft and scam-related losses. Other states are expected to adopt similar legislation
• In June 2025, Visa Inc. successfully defended a class-action lawsuit concerning "card draining" scams linked to Vanilla-branded gift cards. The court ruled that Visa was not liable, setting a precedent for other providers facing rising gift card fraud
• In May 2025, Tango Card expanded its digital rewards catalog by adding new retailer partnerships, including department stores and food delivery services. This expansion aims to improve personalization and flexibility in corporate gifting
• In April 2022, eCard Systems expanded its gift card partnership with Toast, offering robust customer insights, loyalty programs, and multi-channel marketing for restaurants. This collaboration aims to enhance business growth by providing comprehensive solutions for customer engagement and satisfaction
• In August 2021, eCard Systems partnered with Paytronix to provide merchants with tools and data to optimize gift card programs, fostering customer connections and business expansion. This strategic alliance enables merchants to understand program success and strengthen customer relationships
• In April 2021, Thoughtworks launched a gift card, leveraging its technology expertise to help retailers drive customer engagement and spending habits. Gift cards serve as entry points into integrated payment and ordering systems, guiding users toward new expenditure patterns and enhancing loyalty

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