New research highlights the “remarkable” growth of the Australian gift card market, fuelled predominantly by the surge in digital gift card sales.

The comprehensive study from Blackhawk Network Australia, which analysed the digital gift card programs of 50 Australian-based merchants, reveals key trends shaping the industry and identifies market leaders who are setting the standard for success.

The research forecasts that the total Australian gift card market, encompassing both digital and physical cards, is projected to grow at a CAGR of 10% between 2020 and 2028, reaching $16.8 billion by 2028. Digital gift cards are at the forefront of this expansion, with sales valued at $10.9 billion last year and expected to represent 43% of the total market by 2028.

From the analysis, three significant trends have emerged, driving digital gift card sales:

• Personalisation and flexibility have become critical, with a 24% increase in merchants offering options such as customisable faceplates and the ability to add personal messages in 2025 compared to 2024.
• Business-to-business (B2B) programs have expanded substantially, with 62% of surveyed merchants now offering bulk purchase options for companies to distribute to their customers or employees, up from 40% in 2022.
• There has been a 30% rise in companies providing self-use capabilities, allowing customers to purchase gift cards for their own budgeting or convenience.

Despite these encouraging trends, Blackhawk Network Australia says the research emphasises that not all gift card programs are equally successful.

“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,” says Blackhawk Network Australia Head of Retail Kieran Nolan.

“The rapid growth of digital gift cards is transforming the market, offering consumers and businesses unprecedented flexibility and convenience.”

Top performers

Among the top performers in the study was RedBalloon, which ranked in the top five for its outstanding digital gift card program. RedBalloon stood out for its recipient experience, scoring 90% overall for a friendly mobile wallet recipient experience well as 81% for its B2B program.

“We’re proud to see Australian merchants with whom we partner closely, like RedBalloon, leading the way in delivering exceptional digital gift card experiences,” says Mr Nolan.  

“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.”