India Gift Card and Incentive Card Market Size - Industry Report on Share, Growth Trends & Forecasts Analysis (2025 - 2030)

India Gift Card & Incentive Card Market Analysis

The India Gift Card And Incentive Card Market size is estimated at USD 13.98 billion in 2025, and is expected to reach USD 31.54 billion by 2030, at a CAGR of 17.67% during the forecast period (2025-2030).

The Indian gift card landscape has undergone a significant transformation, driven by the convergence of digital innovation and evolving consumer preferences. The industry has witnessed a notable shift in average load values across different sectors, with jewelry gift cards commanding the highest load value of USD 172.14 at activation, followed by health and wellness at USD 139.17, and airlines/travel at USD 83.60. This trend reflects the growing sophistication of the Indian gift card market, as consumers increasingly view these instruments as premium gifting options rather than mere convenience tools. The sector's evolution is further characterized by the emergence of new use cases, particularly in the corporate gift card segment, where businesses are leveraging gift cards for employee engagement, channel partner incentivization, and customer relationship management.

The regulatory landscape has experienced substantial developments, with the Reserve Bank of India (RBI) implementing comprehensive guidelines for Prepaid Payment Instruments (PPIs). A significant milestone was achieved in March 2022 when LivQuik became the first PPI issuer to complete the RBI's interoperability requirements, setting a new standard for the industry. The regulatory framework has created a more structured environment for electronic gift card operations, particularly in areas such as KYC compliance, transaction limits, and interoperability requirements, which has enhanced consumer confidence and market stability.

The retail sector has embraced innovative approaches to gift card integration, exemplified by Flipkart's launch of the Sell Back Programme in February 2022, where customers can exchange used smartphones for digital gift card vouchers. This initiative demonstrates the evolving role of gift cards in promoting sustainable consumption patterns and circular economy practices. The entertainment segment has shown particular dynamism, recording the highest breakage rate of 0.68% in 2022, indicating strong consumer engagement and redemption patterns in this category.

Traditional retailers are undergoing significant digital transformation in their gift card operations, with many adopting omnichannel strategies to enhance customer experience. Major retail chains have integrated their gift card systems with mobile wallets and digital payment platforms, enabling seamless transactions across physical and digital channels. The industry has also witnessed the emergence of specialized gift card aggregators and digital gifting platforms, which have expanded the market's reach and accessibility. These platforms have introduced innovative features such as group gifting, scheduled delivery, and personalization options, catering to the evolving preferences of digital-native consumers. The rise of virtual gift card platforms has further facilitated this transformation, offering consumers a convenient alternative to traditional physical gift card options.

India Gift Card & Incentive Card Market Trends

Rising Internet Penetration and Digital Adoption

The explosive growth of internet connectivity and smartphone usage in India has become a fundamental driver for the digital gift card market's expansion. As of 2023, approximately 1.24 billion Indians access the internet via their smartphones daily, spending an average of over three and a half hours online, which has significantly boosted trust in digital services. This widespread digital adoption has created an ideal environment for prepaid gift card solutions to flourish, as consumers become increasingly comfortable with online transactions and digital payment methods. The success of the 'Digital India' initiative has played a crucial role in accelerating this digital transformation, creating a robust infrastructure that supports the growth of digital gift card solutions.

The shift in consumer behavior towards digital transactions has been particularly evident in the gift card sector, where digital or e-gift cards have evolved from contributing single-digit percentages in 2012-2013 to now dominating with over 90% contribution in value terms. This transformation is further supported by the rapid expansion of digital wallets and the widespread acceptance of electronic payment systems, which have revolutionized the retail consumer sector. The convenience and flexibility offered by digital gift cards align perfectly with today's fast-paced lifestyle, where last-minute gift shopping has become commonplace.

Evolution of Corporate Gifting and Rewards Programs

Corporate gift cards have emerged as a powerful tool for business relationship management, with companies increasingly utilizing them for employee engagement, channel partner incentives, and customer loyalty programs. The average load value for corporate gift cards varies significantly across sectors, with jewelry leading at USD 172.14, followed by health and wellness at USD 139.17, and airlines/travel at USD 83.60, demonstrating the diverse application of gift cards in corporate settings. This trend is particularly evident in employee relation management, where businesses are moving away from traditional rewards like silver coins and certificates in favor of more flexible gift card solutions.

The corporate sector's adoption of gift cards has been further accelerated by the need for efficient bulk ordering and distribution systems. Companies are leveraging reward card solutions for various purposes, from festival celebrations to performance rewards, with many organizations reporting significant improvements in employee satisfaction and engagement through these programs. The effectiveness of corporate gift card programs is evident in their ability to reduce customer acquisition costs, as demonstrated by successful case studies where companies achieved sales surges during off-seasons through strategic gift card promotions, with some programs reducing customer acquisition costs to less than 1% of the offer value.

Integration of Advanced Payment Technologies

The integration of sophisticated payment technologies with gift card systems has revolutionized the way consumers interact with these products. The Reserve Bank of India's recent guidelines on digital wallet interoperability, which came into effect in March 2022, have led to steady growth in both semi-closed and open-loop digital wallets. This regulatory framework has created a more robust and secure environment for gift card transactions, encouraging greater consumer confidence and adoption. The implementation of Additional Factor Authentication (AFA) for wallet transactions, with exemptions for recurring payments up to INR 5,000, has struck a balance between security and convenience.

The technological advancement in the gift card sector is particularly evident in the emergence of omnichannel solutions that seamlessly integrate online and offline experiences. Payment instruments can now be issued, activated, managed, and monitored in real-time, available in both physical and digital forms. The integration of UPI networks and other digital payment solutions has significantly enhanced the utility of stored value card systems, making them more accessible and user-friendly. This technological evolution has also enabled more sophisticated features such as group gifting, delayed/scheduled sending, and personalization tools, which have contributed to increased consumer engagement and adoption rates.

Segment Analysis: By Business Type

B2B Segment in India Gift Card and Incentive Card Market

The Business-to-Business (B2B) segment dominates the Indian gift card and incentive card market, commanding approximately 78% of the total market share in 2024. This substantial market presence is primarily driven by corporate entities purchasing digital gift cards for various stakeholder engagements, including employee rewards, channel partner incentives, and customer relationship management. The segment's dominance is further reinforced by the increasing adoption of closed-loop gift card solutions in the corporate sector, with businesses leveraging them for bulk orders and streamlined distribution processes. Major corporations across India have embraced gift cards as a strategic tool for employee engagement, particularly during festivals and special occasions, moving away from traditional gifting methods like silver coins and certificates. The B2B segment has also witnessed significant innovation in delivery mechanisms, with companies now offering both digital gift card and physical gift card solutions tailored to corporate needs, along with comprehensive program management and support services.

B2C Segment in India Gift Card and Incentive Card Market

The Business-to-Consumer (B2C) segment has emerged as the fastest-growing segment in the Indian gift card and incentive card market, projected to grow at approximately 25% during the forecast period 2024-2029. This remarkable growth is fueled by the rapid expansion of third-party gift card retailers and online reseller channels, which have integrated prepaid gift card options as a standard part of their merchandise offerings. The segment's growth is further accelerated by the increasing penetration of smartphones and internet connectivity, making electronic gift card options more accessible to the general population. Major platforms like Amazon, PayTM, PhonePe, and several other specialized companies have transformed gift cards into a preferred option for virtual gifting. The B2C segment has also benefited from the rising adoption of self-use cases, particularly in categories like gaming, OTT subscriptions, and digital services, creating new opportunities for market expansion and innovation in personalized gifting solutions.

Segment Analysis: Card Type

Closed-loop Card Segment in India Gift Card and Incentive Card Market

The closed-loop gift card segment dominates the Indian gift card and incentive card market, holding approximately 62% of the market share in 2024. These cards are specifically designed for transactions exclusively at particular merchants' branded locations and websites, including franchise locations or specific business services at several locations. Closed-loop gift card solutions represent a low per-card investment for merchants and can be used more freely to entice new customers, reward existing ones, and establish a community presence. The cards are reloadable and help merchants maintain their program in perpetuity, allowing customers to return and reuse them. Retailers are leveraging these cards as entry points into social scenarios to guide potential customers into their closed loop of payment, membership, and ordering systems, gradually cultivating customers to generate new consumption habits. The evidence strongly supports that closed-loop gift card promotions lead to increased business revenue through enhanced customer engagement and loyalty.

Open-loop Card Segment in India Gift Card and Incentive Card Market

The open-loop gift card segment is experiencing the fastest growth trajectory in the Indian gift card and incentive card market, with a projected growth rate of approximately 23% during 2024-2029. Open-loop gift card and prepaid programs are emerging as next-generation assets that promise digital transformation for organizations. These cards offer multiple benefits, including corporate benefits, facilitating receiving or making payments for gig workers or merchants, or simply all-purpose gifting. Payment instruments under this program can be issued, activated, managed, and monitored in real-time, available in both physical gift card and digital forms. Consumers are showing a clear preference for prepaid open-loop gift card options that they can use anywhere major card brands are accepted, as they provide much broader choice and flexibility in spending. The segment's growth is further supported by the RBI's guidelines on digital wallet interoperability, leading to steady growth of both semi-closed and open-loop digital wallets.

Segment Analysis: Industry of Application

Apparel, Footwear and Accessories Segment in India Gift Card and Incentive Card Market

The apparel, footwear, and accessories segment has emerged as the dominant force in India's gift card and incentive card market, commanding approximately 32% of the total market share in 2024. This segment's leadership position is driven by the rapid expansion of e-commerce platforms and the increasing adoption of digital gift card solutions by major fashion retailers. Leading brands like Zara, H&M, and Shoppers Stop have significantly contributed to this growth through their innovative loyalty programs and gift card offerings. The segment has also benefited from the rising trend of fashion retailers accepting gift cards in exchange for used clothing, promoting sustainable shopping practices. Additionally, the segment is experiencing the fastest growth rate of around 24% for the forecast period 2024-2029, primarily due to the increasing personalization options in fashion gift cards and the growing integration of gift cards with loyalty programs across multiple fashion retail channels.

Remaining Segments in Industry of Application

The gift card market encompasses several other significant segments that contribute to its diverse ecosystem. Consumer electronics represents a substantial portion, driven by the increasing adoption of gift cards for smartphone purchases and electronic accessories. The health, wellness, and beauty segment has gained prominence due to the rising focus on personal care and wellness products. The books and media segment continues to evolve with the integration of digital content and streaming services. The food and beverages segment maintains steady growth through restaurant and grocery gift cards. The kids' products segment serves a specialized market with targeted gift cards for toys, educational products, and children's entertainment. Each of these segments contributes uniquely to the market's dynamics, offering varied options for both corporate and individual gift-giving needs.