The Growing Mobile Market for Gift Cards — Insights for 2026

The use of mobile phones for utilizing gift cards and making payments has surged in recent years, reflecting a significant shift in consumer behavior. Recent data show that about 40% of mobile users use their phones to redeem digital coupons and similar digital value assets, reflecting strong engagement with mobile-based redemption and payment technologies — a trend that parallels rising mobile payments usage, with over 2 billion people using mobile payment apps worldwide and U.S. consumers averaging 11 mobile payments per month in 2024.

Mobile Momentum & Payment Adoption

The mobile gift card revolution is well underway—it's not just convenience anymore; it's essential.

• In 2025, the global mobile payment market reached $117.5 billion, with U.S. proximity-based mobile payments totaling $670.5 billion in 2024.
• The mobile payment sector is projected to grow at a CAGR of 38% between 2025 and 2030, potentially hitting $587.5 billion by 2030.
• Digital wallets accounted for 53% of online purchases globally in 2024, with forecasts projecting growth to 65% by 2030.
• Notably, 42% of Millennials prefer digital payment–based gifts, including digital payments or e-gift formats.
• In 2025, digital gift cards accounted for a majority of gift card sales, with digital formats holding about 58% of the U.S. gift card and incentive card market.

Trends in Personalization, Security & Corporate Use

The future of mobile gift cards hinges on personalization, safety, and strategic integration.

• Personalization is an expected part of the customer experience. Recent research shows that approximately 71% of consumers now expect personalized interactions from brands — a clear reflection of rising expectations for tailored content, recommendations, and offerings.
• AI-driven customization—dynamic designs, tailored messaging—is rapidly reshaping consumer expectations.
• Corporations continue to lean heavily on gift cards as strategic drivers of engagement and loyalty. In 2025, roughly 60% of executives said gift cards are the top reward format in incentive programs, and approximately 70% of organizations — especially in North America — report increasing gift card use in their incentive and rewards initiatives.
• Security continues to evolve as a top priority in digital gift card and payment platforms. In 2025–2026, businesses are incorporating blockchain technologies to improve traceability and reduce fraud risk, while tokenization, biometric authentication, and advanced fraud detection tools are becoming increasingly common — bolstering trust and minimizing security threats across digital and mobile payment ecosystems.

Market Outlook: Size & Growth Trajectory

The gift card market isn’t just growing — it’s scaling.

• In 2025, research shows the U.S. gift card and incentive card market was valued at around $207 billion, and is expected to expand toward roughly $300 billion by 2031 at a CAGR of approximately 6.4%, driven by digital adoption, omnichannel retail strategies, and integration with employee incentives and loyalty programs.
• Globally, digital gift cards now represent the dominant share of gift card sales, reflecting the broader digital transformation of the gifting market.
• In 2024, the market was valued at around $214 billion, and industry analysts project continued moderate growth through 2028. This aligns with medium-term forecasts that showed the market expanding at around a 5.7% CAGR over this period, underscoring consistent demand and scaling potential.

Why This Matters for Your Business

Your audience is using mobile devices more than ever, with the average person checking their phone around 186 times per day and spending roughly 4.5 hours each day on their smartphone.

They now expect seamless, secure, and personalized digital experiences. Features such as mobile wallet integration, real-time redemption, AI-driven personalization, and advanced security aren’t optional — they’re part of the everyday expectations consumers bring to mobile interactions and transactions.

The Future of Mobile Gift Cards

The trajectory of mobile technology in the gift card industry indicates a promising future. Businesses that prioritize secure, user-friendly mobile payment solutions will likely see increased consumer engagement and satisfaction. As the industry evolves, maintaining a focus on both innovation and security will be key to harnessing the full potential of mobile gift cards.

For more information on the growing mobile market for gift cards, check out the full range of insights and data available from leading industry reports. Ready to embrace the future of mobile payments and make sure your business is ready to meet the demands of today's tech-savvy consumers? Contact our gift card experts to learn more about our gift card program management and consultancy services.