Australia Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) - Market Size and Forecast; Spend Analysis by Digital / e-Gift Card, Retail and Corporate Consumers, Distribution Channel, Occasions, Retail Sectors, Open Loo

According to PayNXT360, gift card market in Australia is expected to grow by 10.9% on annual basis to reach US$8,227.0 million in 2025.

The gift card market in the country experienced robust growth during 2020-2024, achieving a CAGR of 11.5%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 9.6% during 2025-2029. By the end of 2029, the gift card sector is projected to expand from its 2024 value of USD 7,421.7 million to approximately USD 11,852.4 million.

This report provides a detailed data-centric analysis of the gift card sector in Australia, covering market opportunities and risks across consumer segments (retail and corporate); product categories; retail sectors; and store formats. With over 100+ KPIs at the country level, this report provides a comprehensive understanding of gift card market dynamics.

It offers a comprehensive analysis of market dynamics in the gift card sector, segmented by digital and e-gift card sales, distribution channels, key occasions, demographic trends, and market share statistics of leading retailers. In addition, it provides a snapshot of consumer behaviour and retail spending dynamics. KPIs in both value and volume terms help in getting an in-depth understanding of end market dynamics.

PayNXT360’s research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view of emerging business and investment market opportunities.

Key Insights

The gift card market in Australia is undergoing structural transformation, driven by shifts toward digital adoption, strategic partnerships, and corporate gifting. Regulatory changes aimed at protecting consumers and addressing unused balances reshape industry standards. As businesses and financial institutions respond to these trends, the gift card sector will experience steady growth, innovation, and increased consumer trust.

Over the next few years, companies operating in this space must refine their strategies to align with digital trends, comply with evolving regulations, and enhance the user experience. Businesses that proactively adapt to these shifts will be better positioned to capture opportunities in Australia’s expanding gift card market.

Accelerate Digital Gift Card Adoption
• Australia's shift towards digital gift cards reflects broader consumer behavior and payment preference changes. With increasing smartphone penetration and digital wallet adoption, electronic gift cards are becoming a preferred choice for both givers and recipients. The seamless integration of digital gift cards with mobile payment systems and e-commerce platforms has made them more convenient and accessible, reducing the reliance on physical cards.
• Several industry factors are accelerating this transition, particularly the expansion of digital wallets such as Apple Pay and Google Pay. The ability to instantly send, store, and redeem gift cards through mobile apps has contributed to their growing popularity. Additionally, the surge in e-commerce activity has encouraged retailers to offer digital gift cards as a flexible and quick gifting solution, catering to consumers who prioritize convenience and immediacy.
• Over the next two to four years, digital gift cards are expected to further penetrate the market, driven by continuous advancements in payment technology. Retailers and financial institutions will likely introduce enhanced features such as personalized gifting experiences and seamless loyalty program integration to increase engagement. As consumers become more accustomed to digital-first transactions, the demand for digital gift cards will continue to rise, solidifying their role as a key component of Australia’s evolving retail and payments ecosystem.

Foster Strategic Partnerships Between Banks and Gift Card Providers
• The collaboration between banks and gift card providers in Australia is reshaping the industry by improving accessibility and expanding distribution channels. Financial institutions are increasingly forming strategic alliances with gift card networks to enhance product offerings and provide consumers with seamless, integrated gifting solutions. These partnerships are particularly relevant as digital payments continue to gain traction, making it easier for banks to incorporate gift cards into their existing financial ecosystems.
• Several factors drive this trend, including rising consumer demand for flexible and efficient gifting solutions. Banks are leveraging their technological infrastructure to streamline gift card issuance and redemption, improving user convenience. Additionally, financial institutions see these collaborations as an opportunity to diversify their services and attract new customers. Notable instances include Heritage Bank’s partnership with Blackhawk Network and Commonwealth Bank’s collaboration with Karta, both aimed at simplifying and expanding gift card usage in Australia.
• Over the next two to four years, these partnerships are expected to broaden market reach and accelerate the adoption of digital and bank-issued gift cards. Enhanced user experiences, driven by integrating digital wallets and banking apps, will make gift cards more appealing and convenient for consumers. As a result, Australia's overall gift card market is projected to grow, with financial institutions playing a key role in driving innovation and accessibility in this space.

Leverage Corporate Gifting to Drive Market Growth
• Adopting gift cards in corporate gifting is growing in Australia as businesses seek flexible and efficient ways to reward employees and retain customers. Companies increasingly use gift cards as part of their incentive programs, offering them as performance bonuses, recognition awards, and customer appreciation gifts. This shift aligns with broader trends in workplace engagement and consumer loyalty strategies, where non-cash rewards are preferred for their ease of distribution and personalization options.
• Several factors drive this trend, including the need for effective employee engagement and customer retention strategies. Gift cards provide businesses a cost-effective and scalable way to recognize achievements and incentivize desired behaviors. Their flexibility makes them an attractive option across different industries, allowing companies to offer tailored rewards that align with employees' and customers' preferences. As a result, corporate gifting is becoming a significant contributor to the expansion of the Australian gift card market.
• Over the next two to four years, the corporate sector's reliance on gift cards is expected to drive market revenue and innovation. Businesses will likely demand more customized gift card solutions, including branded and reloadable options that can be integrated into loyalty programs. Additionally, corporate gifting is set to strengthen relationships between employers and employees and between businesses and their customers, reinforcing the long-term value of gift cards as an engagement and retention tool.

Address Unused Gift Card Balances
• A substantial amount of gift card value remains unredeemed in Australia, with an estimated $1.9 billion in unused balances. This unspent value represents a growing concern for consumers and regulators, raising questions about accessibility and fairness in the gift card industry. Many consumers either forget to use their gift cards or find themselves unable to redeem small remaining balances, leading to inefficiencies in the market.
• Several factors contribute to this trend, including low remaining balances that are difficult to utilize, misplaced or forgotten gift cards, and restrictions on redemption. Sometimes, gift card terms and conditions limit how and where consumers can spend their funds, making it challenging to use the full value. These issues highlight the need for improved transparency and usability in gift card offerings to ensure consumers can maximize their benefits.
• Over the next two to four years, the industry may see regulatory changes to improve gift card redemption rates and protect consumer rights. Potential reforms could include measures requiring businesses to offer refunds for small balances or allow consolidation of multiple gift cards. Additionally, innovations such as digital reminders, balance-tracking tools, and more flexible redemption options could enhance consumer trust and encourage greater utilization of gift cards.

Navigate Regulatory Changes in the Gift Card Industry
• The Australian government has implemented regulatory changes to enhance consumer protection in the gift card market. These measures include a mandatory minimum three-year expiry period for most gift cards and a ban on post-purchase fees, except in specific cases. By enforcing these rules nationwide, regulators aim to create a fairer and more transparent system that ensures consumers receive full value for their gift card purchases.
• Several factors have driven these regulatory changes, including concerns over consumer losses due to short expiry periods and unused balances. Authorities have also focused on increasing market transparency by ensuring that terms and conditions are communicated to consumers. Additionally, Australia’s regulations align with global trends, as other markets have introduced similar consumer protection measures to standardize the industry and improve fairness.
• Over the next two to four years, businesses must adapt to these regulations, which may increase compliance costs as they update policies and systems. However, improved consumer trust in gift cards could drive higher adoption rates, benefiting retailers and financial institutions in the long run. As the industry continues to evolve, regulators may introduce further refinements to address emerging challenges, such as digital security risks and fraud prevention, shaping the future landscape of the gift card market in Australia.

Competitive Landscape of the Australia Gift Card Market

The Australian gift card market is rapidly expanding, fueled by growing consumer demand and increased corporate adoption. However, regulatory inconsistencies across states and territories present challenges that could impact market efficiency and growth. Established players such as Wesfarmers and Woolworths continue to dominate, but the rise of fintech firms and digital platforms is reshaping the competitive landscape by introducing innovative solutions.

The market is expected to become more dynamic, with new entrants, technological advancements, and strategic collaborations playing a key role in shaping its future. Companies must focus on personalization, compliance with evolving regulations, and seamless integration with digital payment ecosystems to stay competitive. As competition intensifies, businesses that successfully navigate these changes will be best positioned to drive market leadership and capitalize on emerging opportunities.

Current Market Dynamics
• The Australian gift card market expansion is driven by increased adoption across retail and corporate sectors as consumers and businesses recognize gift cards' convenience and flexibility.
• However, the market faces challenges due to inconsistencies in regulations across different states and territories, which can create operational complexities for issuers operating on a national scale. These regulatory variances may impact efficiency and impede the smooth expansion of the market.

Key Players and Market Share
• Prominent Australian gift card market players include major retailers such as Wesfarmers, Woolworths, Metcash, ALDI Group, and Harvey Norman Holdings. These companies have established extensive gift card programs that cater to a wide range of consumer preferences.
• In addition to these established entities, the market has seen the entry of fintech firms and digital platforms aiming to capitalize on the growing demand for digital gift cards. These new entrants are leveraging technology to offer innovative solutions, intensifying industry competition.

Recent Launches and Partnerships
• The Australian gift card market has witnessed strategic partnerships to enhance product offerings and expand market reach. For instance, financial institutions have collaborated with gift card providers to integrate services and offer seamless gifting solutions to consumers.
• While the available sources do not detail specific recent mergers and acquisitions within the Australian market, the global trend indicates a movement towards consolidation, with companies seeking to strengthen their positions through strategic alliances and acquisitions.

Anticipated Market Evolution (Next 2-4 Years)
• Over the next 2-4 years, the competitive landscape of the Australian gift card market is expected to become more dynamic. The anticipated growth in the market is likely to attract additional entrants, including international players, thereby increasing competition.
• Existing players may focus on technological innovations, personalized offerings, and strategic partnerships to maintain and enhance their market positions. Additionally, staying abreast of regulatory changes and ensuring compliance will be crucial for sustaining consumer trust and achieving long-term success.

Scope

This report provides in-depth, data-centric analysis of gift card industry in Australia through 100+ tables and 280+ charts. Below is a summary of key market segments:

Australia Total Spend on Gifts
• By Consumer Segment (Retail and Corporate)
• By Product Categories (13 Segments)
• By Retail Sectors (7 Segments)

Australia Gift Card Market Size by KPIs across Consumer Segments
• Gross Load Value
• Transaction Value
• Unused Value
• Average Value Per Transaction
• Transaction Volume
• Average Value of Card Purchased
• Number of Cards

Australia Gift Card Market Size by Consumer Segment
• Retail Consumer
• Corporate Consumer (Small Scale, Mid-Tier, Large Enterprise)

Australia Digital Gift Card Market Size
• By Retail Consumer
• By Retail Purchase Occasion
• By Corporate Consumer
• By Corporate Purchase Occasion
• By Company Size

Australia Gift Card Market Size by Retail Consumer
• By Functional Attribute
• By Occasion
1. Festivals & Special Celebration Days
2. Milestone Celebration
3. Self-Use
4. Other
• Value by Purchase Channel

Australia Gift Card Spend by Consumer Behavior and Demographics
• Gift Card Spend by Payment Method
• Consumer Purchase Behaviour
• Gift Card Buyer by Age Group
• Gift Card Buyer by Income Level
• Gift Card Buyer by Gender

Australia Gift Card Market Size by Corporate Consumer
• By Functional Attribute
• By Occasion
1. Employee Incentive
2. Sales Incentive
3. Consumer Incentive
• By Scale of Business

Australia Gift Spend by Product Categories (Split by Retail and Corporate Consumers)
• Food & Beverage
• Health, Wellness & Beauty
• Apparel, Footwear & Accessories
• Books & Media Products
• Consumer Electronics
• Restaurants & Bars
• Toys, Kids, and Babies
• Jewelry
• Sporting Goods
• Home & Kitchen Accessories & Appliances
• Travel
• Entertainment & Gaming
• Other

Australia Gift Card Spend by Retail Sector (Split by Retail and Corporate Consumers)
• Ecommerce & Department Stores
• Restaurants & Bars
• Supermarket, Hypermarket, Convenience Store
• Entertainment & Gaming
• Specialty Stores
• Health & Wellness
• Travel

Australia Gift Card Spend by Distribution Channel (Split by Retail and Corporate Consumers)
• Gift Card Online Sales
• Gift Card Offline Sales
• 1st Party Sales
• 3rd Party Sales
• Sales Uplift

Australia Gift Card Purchase by Payment Method
• Credit Card
• Debit Card
• Bank Transfer
• Prepaid Card
• Digital & Mobile Wallet
• BNPL & Other Digital Payment
• Cash

Australia Closed Loop Gift Card Market Share by Key Retailers. Key Retailers Covered Include:
Woolworths Supermarkets
Coles
Aldi
Kmart
Bunnings
IGA
Harvey Norman
Big W
JB Hi-Fi
Target

Reasons to buy
• Comprehensive comprehension of the dynamics of the gift card and incentive card markets: Recognise the opportunities in the market, the main drivers and trends, and the five-year projection for gift and incentive cards in Australia.
• Create strategies tailored to the market: To create your gift card strategy, identify growth categories and target particular opportunities across consumer segments and occasions; evaluate important trends and risks unique to your market.
• Learn about the attitudes and behaviours of consumers in Australia: Increase ROI by understanding how consumer attitudes and behaviours are evolving. With gift cards, you may obtain comprehensive information about retail spending for both corporate and retail customers.
• Six key performance indicators (KPIs) provide a comprehensive view: the quantity of cards in circulation, load value, unused value, average purchase value, average value per transaction, and transaction value.
• Distribution channel insights: Recognise the differences in gift card sales across online and offline channels as well as between first-party and third-party sales. Show more