Gift cards have become the preferred gifting choice worldwide, as reflected in China’s gift card market, which has seen a 9.4% compound annual growth rate (CAGR) since the beginning of the decade.
According to a report from ResearchAndMarkets.com, this rapid growth is expected to continue, with China’s gift card market projected to expand at a 7.1% CAGR through 2029. One of the driving forces is the increasing adoption of digital gift cards.
Digital gift cards have gained significant traction in China, largely due to the country’s stringent pandemic lockdowns, which accelerated the shift toward e-commerce. In response, leading e-commerce platforms like Alibaba’s Tmall and JD.com began to offer more digital gift card options and enhanced personalization features, further fueling their popularity.
“The Chinese market really exemplifies the uniformity of gift cards across different cultures and borders,” said Jordan Hirschfield, Director of Prepaid at Javelin Strategy & Research. “The keys to growth align similarly to those in western markets—including rewards and self-use, digitization, and commercial incentives.”
Avid Mobile Payments Adoption
The digitization of payments in China has significantly impacted the prepaid market. China has been a keen adopter of mobile payments, with consumers frequently using platforms like Alipay and WeChat Pay for everyday purchases.
This digital-first shift means that payments using cash and physical gift cards will either create friction at checkout or may not be accepted at all. The prevalence of these payments platforms is only expected to rise in the coming years, further driving the adoption of digital gift cards in China.
The Same Trajectory
The increasing trend of self-use is driving this growth. More consumers than ever are buying gift cards to take advantage of rewards and promotions, with digital gift cards being especially popular because they can be purchased and used instantly.
While China may experience higher digital gift card growth due to its heavy mobile payments adoption, the rest of the world is following a similar trajectory.
“Growth in the Chinese gift card market, despite its relative newness, is already closely mirroring the continued future growth of the U.S. market—further highlighting the similarity of the macro environment,” Hirschfield said.
