Market Intelligence, Future Growth Dynamics, Market Size and Forecast

DUBLIN, Nov. 5, 2021 /PRNewswire/ — The “Israel Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) – Market Size and Forecast (2016-2025) – Q2 2021 Update” report has been added to ResearchAndMarkets.com’s offering.

Despite near-term challenges in 2021, medium to long term growth story of gift cards in Israel remains strong. The gift card industry in Israel is expected to grow steadily in H1 2021 and record a strong growth in H2 2021.

The growth momentum is expected to continue to grow over the forecast period, recording a CAGR of 9.7% during 2021-2025. The gift card market in the country will increase from US$ 866.1 million in 2020 to reach US$ 1409.4 million by 2025.

The rising adoption of electronic payment methods such as mobile wallets is supporting the growth of gift card market in Israel. Moreover, the market growth can also be attributed to the increasing smartphone penetration and subsequent e-commerce gift card’s rapid expansion in Israel.

The Israeli e-commerce market is still relatively small, however, the growing market attractiveness with more than four million e-commerce shoppers has enticed the leading e-commerce companies such as Amazon, e-bay, and Alibaba in the market. This trend is creating growth opportunities for gift cards. Furthermore, both domestic gift card issuers such as Isracard and international companies have a strong presence in the Israeli gift card market.

The demand for e-gift cards is showing significant growth due to due to wider acceptance of digital ecosystem which is leading consumers towards alternative gifting solutions such as e-gift cards. The trend is also supported by the current coronavirus pandemic. The fear of spreading the virus has forced individuals to become more cautious about what they touch, making them choose e-gifts over physical ones. Furthermore, the economic slowdown and restricted movement due to COVID-19 is also changing consumer’s gifting pattern.

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Facebook for instance, partnered with Rise.ai, an Israel startup offering AI-driven customer re-engagement solutions, in July 2020, to provide Rise.ai’s gift cards on Facebook and Instagram. This deal is aimed at SMEs selling digital gift cards, offering improved traffic, loyalty, and sales. Similarly, Google collaborated with Rise.ai in August 2020, to enable businesses offer digital gift cards on Google My Business (GMB) page.

Corporate spending on gift cards is also increasing in the country. The trend has created growth opportunities for fintech companies such as Snappy App and gift card issuers. The rising consumer interest in cryptocurrencies is also driving the gift card market growth. In Israel, consumers can buy bitcoins and other altcoins through gift cards or vice-versa. This has also created scope for third party players such as paxful.com and bitrefill.com to allow consumers to trade with bitcoins for gift cards.

This report provides a detailed data…