Canada 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 Loop,

According to PayNXT360, gift card market in Canada is expected to grow by 7.5% on annual basis to reach US$8,438.8 million in 2025.

The gift card market in the country experienced robust growth during 2020-2024, achieving a CAGR of 8.0%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 6.5% during 2025-2029. By the end of 2029, the gift card sector is projected to expand from its 2024 value of USD 7,848.9 million to approximately USD 10,835.9 million.

This report provides a detailed data-centric analysis of the gift card sector in Canada, 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 Canadian gift card market is undergoing a structural transformation driven by digital adoption, corporate demand, and evolving regulations. The shift toward digital gift cards, growing corporate gifting programs, and strategic partnerships between retailers and financial institutions are shaping the market’s future. At the same time, regulatory changes are ensuring greater consumer protection, leading to increased trust and market standardization.

Over the next two to four years, competition will intensify as new entrants, technological advancements, and regulatory adjustments redefine the industry landscape. Businesses that invest in innovation, compliance, and consumer-centric strategies will be better positioned to capture emerging opportunities in Canada’s growing gift card market.

Accelerate Digital Gift Card Adoption
• The Canadian gift card market is shifting towards digital formats, with consumers increasingly favoring electronic gift cards over physical ones. The pandemic has accelerated this trend and heightened the demand for contactless transactions and digital gifting solutions. As a result, retailers and financial institutions are investing in digital infrastructure to enhance the accessibility and usability of gift cards, particularly through mobile wallets and online platforms.
• Several factors drive this transition, including broader digital transformation efforts across the retail sector and the growing consumer preference for convenience. Digital gift cards provide instant delivery, eliminating the need for physical distribution and making them an attractive choice for individuals and corporate buyers. Additionally, integrating gift cards with mobile payment systems streamlines transactions, further encouraging adoption.
• Over the next two to four years, the digital gift card market will expand significantly as consumers become accustomed to digital-first payment methods. Retailers will likely introduce innovative features to enhance user engagement, such as personalized digital gifting experiences and integration with loyalty programs. As adoption increases, digital gift cards are expected to become a mainstream payment and gifting solution across Canada’s retail and e-commerce landscape.

Foster Strategic Partnerships Between Retailers and Gift Card Providers
• Retailers in Canada are increasingly partnering with gift card providers to expand their distribution channels and improve accessibility. These collaborations allow retailers to offer gift cards across multiple platforms, including online stores, third-party marketplaces, and financial institutions. As consumer demand for seamless and convenient gifting options grows, strategic partnerships have become crucial to the gift card industry.
• Several factors drive this trend, including the need for innovative and flexible gift card solutions. Retailers are leveraging technology to streamline gift card issuance and redemption, integrating them with mobile payment systems and e-commerce platforms. Additionally, partnerships help businesses diversify their offerings and enhance customer engagement, giving them a competitive edge in the evolving retail landscape.
• These collaborations will broaden market reach and improve user experiences over the next two to four years. As retailers and gift card providers refine their strategies, consumers will have access to more versatile and personalized gifting options. The growing adoption of digital gift cards and expanded distribution networks will contribute to the overall growth of Canada’s gift card market, making it a key revenue driver for retailers and financial institutions.

Leverage Corporate Gifting to Drive Market Growth
• Canadian businesses are increasingly integrating gift cards into their corporate strategies, using them as employee incentives and customer rewards. Companies view gift cards as a flexible and efficient tool to recognize employee performance, enhance engagement, and improve retention. Additionally, businesses leverage gift cards in marketing campaigns and promotional activities to attract and retain customers, making them a key driver of corporate gifting trends.
• Several factors contribute to this growing adoption, including the need for effective employee engagement strategies and customer loyalty programs. Gift cards provide companies with a cost-effective and customizable way to reward their workforce while also serving as an attractive option for customer incentives. Their flexibility allows businesses across various industries to tailor rewards to recipients’ preferences, increasing the perceived value of these incentives.
• Over the next two to four years, corporate gifting is expected to significantly boost Canadian gift card market revenue. The demand for personalized and business-branded gift card solutions will likely grow as organizations seek innovative ways to strengthen employee and client relationships. As corporate adoption rises, gift card providers may introduce enhanced offerings, such as reloadable gift cards and integrated loyalty programs, to cater to evolving business needs.

Address Unused Gift Card Balances
• A significant portion of gift card balances in Canada remains unredeemed, representing a sizable amount of unused funds within the market. Many consumers either forget to use their gift cards or struggle to spend small remaining balances, resulting in lost value. This trend raises concerns for consumers and regulators, as it impacts the effectiveness of gift cards as a financial and gifting tool.
• Several factors contribute to this issue, including difficulty using low remaining balances, consumer forgetfulness, and limitations on where and how gift cards can be redeemed. Some retailers have restrictions on partial redemptions or minimum spending requirements, making it harder for consumers to use the full value of their gift cards. These barriers reduce overall engagement with gift card programs and may discourage future purchases.
• Over the next two to four years, addressing unused balances could lead to regulatory changes to improve consumer protection. Potential reforms may require businesses to offer easier redemption options or alternative ways to utilize leftover balances. Additionally, innovations such as balance-tracking tools, auto-reminders, and flexible redemption policies could enhance consumer trust and encourage greater utilization of gift cards in Canada.

Navigate Regulatory Changes in the Gift Card Industry
• The Canadian government has introduced regulations to enhance consumer protection in the gift card market, focusing on expiry dates and associated fees. These measures aim to create a fairer and more transparent system by ensuring consumers receive full value for their purchases. By implementing these regulations, Canada aligns itself with global best practices in consumer rights and financial fairness.
• Several factors have contributed to these regulatory changes, including concerns over consumer losses from expired or partially used gift cards. Regulators are also working to improve market transparency by mandating clearer terms and conditions for gift card purchases. Additionally, as other regions have adopted similar protective measures, Canada has followed suit to maintain consistency in its regulatory approach and strengthen consumer confidence.
• Over the next two to four years, businesses must adjust their gift card policies to comply with evolving regulations, which may lead to increased compliance costs. However, these measures are expected to enhance consumer trust, potentially driving higher adoption rates for gift cards. As the industry evolves, further policy refinements may be introduced, addressing issues such as digital fraud prevention and improved security measures for digital gift cards.

Competitive Landscape of the Canada Gift Card Market

The Canadian gift card market is expanding rapidly, fueled by the increasing shift toward digital gift cards and the continued growth of e-commerce. This sector is benefiting from higher consumer adoption, particularly among millennials who favor the convenience of digital transactions. The rise of digital wallets and mobile payment platforms also contributes to the increased demand for digital gift card solutions, further driving market expansion.

As competition intensifies, established players and new entrants focus on strategic partnerships, mergers, and acquisitions to strengthen their market presence. Companies such as Swagbucks, Paytm Canada, and InComm are actively working to diversify their offerings and expand distribution networks. Regulatory changes to enhance consumer protection will also shape the market, requiring businesses to adapt their policies while maintaining compliance. Over the next few years, leveraging technological advancements and aligning with evolving regulations will be critical for sustained growth in the Canadian gift card industry.

Current Market Dynamics
• The Canadian gift card market is expanding rapidly, fueled by the increasing preference for digital gift cards and the growth of e-commerce. These sector benefits from shifting consumer behavior, particularly as digital transactions become more widely adopted. The ease of purchasing and redeeming gift cards online has contributed to their rising popularity, making them a preferred gifting option among consumers.
• Millennials are a key demographic driving this growth, as they tend to favor digital payment solutions and online shopping. The emergence of digital gift cards has further accelerated adoption, providing users with instant delivery and seamless integration with mobile wallets. As retailers and financial institutions continue to innovate and expand their offerings, the Canadian gift card market is expected to see sustained demand and further digital transformation.

Key Players and Market Share
• The Canadian gift card market is highly fragmented, with numerous companies offering various gift and incentive card solutions. Established players such as Swagbucks, Paytm Canada, Cadillac Fairview, Miconex Ltd, and InComm have built strong positions in the market by providing both closed-loop and open-loop gift card options. These companies cater to different consumer needs, with closed-loop cards being widely used for specific retailers and open-loop cards offering greater flexibility for broader transactions.
• New entrants in the market are leveraging digital technology to offer innovative solutions and enhance customer experience. Fintech firms and online platforms are increasingly entering the space, focusing on mobile payment integration and instant digital delivery. As competition grows, established and emerging players must focus on personalization, security enhancements, and strategic partnerships to strengthen their market positions.

Anticipated Market Evolution (Next 2-4 Years)
• The Canadian gift card market is expected to become more competitive over the next two to four years as established players and new entrants expand their presence. Companies will likely prioritize technological advancements, such as mobile wallet integration and enhanced security features, to differentiate their offerings. Additionally, personalization will play a key role, with businesses introducing tailored gift card solutions to improve customer engagement and retention.
• As the market evolves, regulatory compliance will be a critical factor influencing business strategies. Companies must adapt to changing consumer protection policies and ensure transparency in gift card terms and conditions. Strategic partnerships and collaborations will continue to shape the competitive landscape as businesses seek to expand distribution channels and improve consumer accessibility.

Regulatory Changes
• The Canadian government has introduced new regulations to strengthen consumer protection in the gift card market in the past year. These measures include restrictions on expiry dates and limitations on fees associated with gift cards, ensuring that consumers receive full value without unexpected deductions. The regulatory changes aim to enhance fairness and transparency, making gift cards a more reliable and consumer-friendly payment and gifting option.
• As a result, businesses operating in the gift card sector must adjust their policies to comply with these new standards. While this may lead to increased operational costs, it is also expected to improve consumer trust and drive higher adoption rates. In the long run, these regulations could contribute to a more standardized and competitive market, benefiting consumers and industry players.

Scope

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

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

Canada 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

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

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

Canada 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

Canada 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

Canada 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

Canada 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

Canada 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

Canada 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

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

Canada Closed Loop Gift Card Market Share by Key Retailers. Key Retailers Covered Include:
Real Canadian Superstore
Shoppers Drug Mart
Home Depot
Canadian Tire
Dollarama
Home Hardware
Amazon
Safeway
Loblaw
Foodland

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 Canada.
• 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 Canada: 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