The Nigerian gift card market is projected to grow 12.8% annually, reaching $2.34 billion in 2025, after a strong performance from 2020-2024. The growth trend continues, with expected CAGR of 11.3% through 2029. Key drivers include digital payment adoption and the rise of reselling platforms. Notable players include JumiaPay and KongaPay.
The new report titled “Nigeria Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) – Q1 2025 Update” anticipates that Nigeria’s gift card market will grow by 12.8% annually, reaching $2.34 billion in 2025. The market has shown robust growth from 2020 to 2024 with a CAGR of 14.4%. This trend is expected to persist, with projections indicating an additional growth rate of 11.3% from 2025 to 2029, ultimately reaching approximately $3.59 billion by 2029.
The report details over 100 KPIs at the country level related to the gift card market, offering insights into various dynamics such as digital and e-gift card sales, retail distribution channels, consumer demographics, and spending habits. Understanding these KPIs in both value and volume terms provides a comprehensive picture of market dynamics.
Rapid transformation is evident in Nigeria’s gift card sector, spurred by rising digital transactions and robust secondary markets. Integration into corporate reward programs is increasing, prompting retailers to diversify their offerings. Consequently, gift cards are becoming a mainstream option for payments and gifting, reflecting the evolving needs of consumers.
Market growth is projected to continue over the next few years, supported by corporate adoption and changing regulatory landscapes. Companies that adopt technological innovations and form strategic partnerships will better accommodate rising demand, ensuring sustainable growth in Nigeria’s gift card sector.
Nigeria’s gift card market exhibits significant expansion driven by digital adoption and a growing demand for flexible payment solutions. The integration of gift cards into financial transactions presents a viable alternative amid the country’s foreign exchange and banking limitations. The rise in usage of multi-brand and digital gift cards caters to consumers’ preferences for versatility.
Major players in the market include JumiaPay, KongaPay, Patricia, and Cardtonic, offering local and international gift card services. The demand for enhanced transaction efficiency has prompted these platforms to innovate, also attracting new entrants like fintech startups that introduce competitive pricing and improved user experiences.
The market has seen strategic partnerships to enhance gift card offerings, with JumiaPay collaborating with various retail brands. Although no significant acquisitions have been noted recently, ongoing industry consolidation hints at potential future mergers for enhanced service reach.
Retailers in Nigeria are actively expanding gift card selections to meet increasing demand for flexible payment solutions. The e-commerce boom is driving this trend, resulting in seamless payment options that benefit both consumers and retailers alike, addressing the need for convenience.
Emerging reselling platforms are gaining traction, allowing consumers to buy or exchange gift cards competitively. These platforms help monetize unused gift cards, tapping into the financial solutions sector in Nigeria. As fintech adoption rises, these platforms are expected to play a larger role in national financial systems.
Corporate usage of gift cards is surging as companies leverage them for employee rewards and marketing campaigns. This trend signifies a strategic move towards flexible incentives that enhance customer loyalty and employee recognition. Anticipated corporate demand for gift cards will likely further market growth, emphasizing tailored solutions for specific corporate needs.
The Nigerian gift card market is on a rapid growth trajectory driven by digital adoption, expanding retail offerings, and increasing consumer preference for flexible payment options. With significant forecasts predicting continued expansion through 2029, the market is set for further innovations and strategic partnerships. Companies that successfully navigate regulatory changes and embrace digital transformations will be positioned for success in this evolving landscape.
Original Source: www.globenewswire.com
