Online gaming gift cards are what growth in the gift card industry owes its current makeup to. Even though retail and dining are leading in the domain of gift cards, in terms of sales, gaming has taken over as the third largest category of the industry with the rise of digital platforms and the increase in consumer demand for this new kind of gift card.
A Q1 Gift Card Gauge study by Clover highlights this tendency, indicating that almost one-third of the respondents prioritized procuring gaming gift cards in 2022. This date brought gaming to the lead and lowered traditional categories, such as health & wellness and travel.
The development we are witnessing is not a short-term success but a demonstration, on the part of customers, that they are adapting to a new way of spending because many of them were given online gaming gift cards during the pandemic; now they are planning to buy them actively.
The market is in the process of enlargement by putting the digital wallet system in place and speeding up the shift towards virtual cards. The most winning regions embracing the new digital phenomenon are North America and the European Union, supported by technological innovations and the rising figures of digital transactions as a percentage of the total number of transactions.
Understanding the driving forces, product types, and regional dynamics of the significant-growing Game Gift Cards market becomes essential for stakeholders trying to participate in this quickly evolving landscape.
Gift Cards in Gaming Industry-An Overview
The next significant advancement in the gift card sector is online gaming. While retail and dining continue to lead as the top two sectors for gift cards, online gaming has emerged as a prominent third player and is set for additional expansion.
Most consumers who purchased their initial online cards this year have indicated their intent to engage more in this area.
This information comes from Clover’s Q1 Gift Card Gauge survey, which surveyed 1,000 U.S. consumers about their gift card buying behaviors.
Key Insights
In 2023, almost one-third of respondents purchased online gaming gift cards, surpassing the health & wellness (25%) and hospitality (21%) sectors for the first time. Additionally, 84% of those who bought online gaming gift cards for the first time last year indicated they plan to make further purchases.
The online gaming industry appeared to hit a turning point during the pandemic, particularly as many Americans began remote work. Gift card spending on gaming rose in both 2019 and 2020, with consumers who bought gaming gift cards acquiring 70% more gift cards each quarter compared to the previous year.
Retail shops and restaurants dominate in this area, with 57% and 52% of respondents purchasing gift cards in these categories.
The best-selling gaming gift cards that have seen a hike recently include GameStop gift cards, Fortnite gift cards and Nintendo gift cards, with GameStop being the most appreciated among the users. It is being sold by both the Official website of GameStop and through third-party retailers.
Top Selling Gift Cards in Recent Years
The best-selling online gaming gift cards that have seen a recent increase include GameStop gift cards, Fortnite gift cards, and Nintendo gift cards. GameStop is the most appreciated one among users. It is sold by both the official GameStop website and trusted third-party retailers, like Send Credit.
Gift Cards for Celebrating Milestones
Clover’s survey reinforces that milestone events are the leading factor behind gift card purchases. It revealed that 56% of consumers intend to buy a card in 2024 for milestone celebrations. The most mentioned events include weddings (36%), anniversaries (35%), and new family arrivals (31%).
The survey also highlighted that digital wallets are becoming a more favored choice, with 60% of respondents indicating their intention to use them more frequently in 2024. “The increase in digital wallets is crucial considering industry and consumer trends,” stated Jordan Hirschfield, Director of Prepaid Payments for Javelin Strategy & Research. “At Javelin, we anticipate a notable transition from physical cards to digital cards, projecting the market will shift from 30% digital to 50% by the end of the decade.”
An unexpected finding from the study was that consumers were marginally more prone to forget about a virtual card’s balance than a physical one. While 41% of participants admitted they had overlooked a physical card, 39% reported the same concern regarding a virtual card.
Hirschfield points out that this has a positive aspect for card issuers. “Unutilized balances present an opportunity to engage consumers through these balances and self-use stored-value accounts, which serve as ongoing touch points,” he explained. “These enable cyclical investment in prepaid stored-value accounts, transforming forgotten balances into revolving, loyal utilization items.
What factors are contributing to the expansion of the Game Gift Cards Market?
The increasing demand for the following applications globally directly influences the growth of Game Gift Cards.
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- Business Games
- Adventure Games
- Others
What types of Game Gift Cards are available in the market?
The market is divided into the following product types, which accounted for the largest share in 2024.
Which regions are at the forefront of the Game Gift Cards Market?
- North America (United States, Canada, and Mexico)
- Europe (Germany, UK, France, Italy, Russia, Turkey, etc.)
- Asia-Pacific (China, Japan, Korea, India, Australia, Indonesia, Thailand, Philippines, Malaysia, and Vietnam)
- South America (Brazil, Argentina, Colombia, etc.)
- Middle East and Africa (Saudi Arabia, UAE, Egypt, Nigeria, and South Africa)
The online gaming gift cards market is expected to experience significant growth from 2024 to 2032. In 2023, the market is maintaining steady growth, and with increasing strategies implemented by major players, it is anticipated to flourish throughout the projected timeframe.
North America, particularly the United States, will continue to be a crucial player in the market, which cannot be overlooked. Any developments in the United States could influence the evolving trends of game gift cards. The North American market is forecasted to expand substantially during the forecast duration. The high rate of advanced technology adoption and the presence of major companies in this area will likely present numerous growth opportunities for the market.
Europe is also significant in the global market, exhibiting remarkable growth in CAGR during the forecast period from 2024 to 2032.
The Game Gift Cards market is expected to reach multimillion-dollar figures by 2032, showing an unexpected CAGR in comparison to 2024 during the period from 2024 to 2032.
Despite the high level of competition, the clear trend in global recovery encourages investors, and more new investments are anticipated to flow into this sector.
The Bottom Line
The online gaming Gift Cards market is in the sky with substantial growth rates, which could be ascribed to the stimulants of ascending consumer interest in games, the ongoing technological advancements and the increasing adoption of digital payment solutions. Formerly, a gaming gift card was a vanity category; now, it is a notable player in the gift card industry, overtaking some classic sectors, such as “health & wellness” and “hospitality.” This paradigm shift is a response to the general consumer trend emphasizing digital experiences and the convenience of virtual transactions.
Besides two big markets, the United States and Europe, many small but fast-growing regions, including Southeast Asia and Latin America, have introduced new growth opportunities untouched. It is unclear whether the gift card market evolution from physical to digital reflects the industry’s responsiveness to varied consumer settings.
The market currently exhibits plenty of chances for businesses to get involved and investors to invest while addressing consumer demands for gaming gift cards. Through customers’ problems information and use of technological advancements, the game gift card market is positioned to change the whole face of the digital gifting market and become the mainstay of the entire global gift card market.
Source: Cosmo Politian
