Australian digital gift card sales surge to AUD $10.9 billion
Australian digital gift card sales have reached AUD $10.9 billion in the past year as new research shows the country's overall gift card market is on track to grow to AUD $16.8 billion by 2028.
The findings, released by Blackhawk Network in its annual NAPCO research, reflect a near 10% compound annual growth rate for the sector between 2020 and 2028. Digital gift cards now account for a substantial proportion of the market and are expected to represent 43% of all gift card sales in Australia by 2028.
Personalisation and business demand
The research, which analysed 50 leading Australian retailers, identified personalisation and flexibility as major drivers of growth, with a 24% increase in merchants offering customisable features. These include tailored faceplates and options for personalised messages, allowing consumers to create more meaningful gifting experiences.
Business-to-business (B2B) programs are another expanding segment. According to Blackhawk Network, 62% of merchants now provide bulk gift card purchasing options to corporate customers, a sharp rise from the 40% reported in 2022. This enables businesses to use gift cards for employee recognition, customer rewards, or marketing incentives. There has also been a notable 30% increase in retailers offering self-use options for gift cards, as more consumers purchase them for personal budgeting or convenience.
Despite these positive trends, researchers noted that achieving success in digital gift cards requires more than just availability. Standout programs are characterised by easy discoverability, efficient checkout, and a smooth recipient experience.
RedBalloon ranks as a market leader
Among those evaluated, RedBalloon was highlighted for its strong digital gift card program, ranking in the top five with a 90% overall score for its recipient experience and 81% for its B2B offering. These results have translated into significant business growth, with RedBalloon reporting a 21% year-on-year increase in gift card revenue and a 3.4% uptick in average order values. Broadening distribution with Blackhawk Network has further enhanced RedBalloon's profile, positioning it as a popular choice for workplace recognition and festive gifting alongside traditional occasions.
At RedBalloon, we understand that gifting is deeply personal, with customers spending months finding the perfect experience, so our focus has always been on providing seamless digital delivery, effortless redemption, and tailored options that allow every customer to give a truly meaningful gift.
Being recognised as a leader in this fast-evolving space is a testament to our team's dedication to innovation and customer satisfaction. We're excited to continue working with partners like Blackhawk Network to set new standards for digital gifting in Australia, ensuring that every experience we offer leaves a lasting impression.
Industry perspectives on growth
Blackhawk Network Australia Head of Retail Kieran Nolan commented on the rise of digital-first solutions and outlined how merchants adopting personalisation, self-use, and business-oriented initiatives are benefiting from increased demand.
As Australians increasingly embrace digital-first solutions, our research shows that merchants investing in personalisation, self-use options, and robust B2B programs are reaping the rewards. The rapid growth of digital gift cards is transforming the market, offering consumers and businesses unprecedented flexibility and convenience.
We're proud to see Australian merchants with whom we partner closely, like RedBalloon, leading the way in delivering exceptional digital gift card experiences. Their commitment to innovation and customer satisfaction sets a benchmark for the industry and demonstrates the true potential of digital gifting. By focusing on seamless user journeys and tailored solutions, these merchants are not only driving growth for their businesses but also raising the standard for the entire market. We look forward to continuing our partnership with forward-thinking brands as the gift card sector evolves and expands.
Market outlook
The Blackhawk Network research draws from sources, including the PayNXT360 Australia Gift Card Country Intelligence Report and broader retail spending analysis. As digital gifting becomes more integrated into business strategies, the Australian gift card market is expected to maintain its double-digit growth trajectory, driven by ongoing innovation in digital programmes and changing consumer and business preferences.