From Tradition to Seamless Innovation: The Surge in Gift Card Popularity Among Young Saudi Consumers
YOUGotaGift, the leading marketplace for digital gift cards in the Middle East, cites that the MENA region’s e-commerce market is expected to reach 213.75 billion Saudi Riyals (SAR) by 2026[1].
Gen Z and Millennials are leading the transformation, with mobile commerce being a major driver, specifically via online retail in Saudi Arabia. These generations, which represent 50.9% of the Saudi population[2], are not only reshaping traditional retail but are also leveraging digital platforms to make more personalized and convenient purchases. Their shift towards mobile commerce and digital payments has grown rapidly, with 60% of Gen Z in Saudi Arabia expected to adopt new digital experiences, including mobile gift cards, by 2025[3].
As part of this shift, brands are increasingly leveraging data to offer more personalized experiences, transforming digital gift cards from one-size-fits-all solutions into highly customized tools for engagement[4]. By offering tailored gift options, brands can meet the specific needs of their customers, enhancing the overall shopping experience. Gen Z and Millennials, in particular, are drawn to these curated experiences that reflect their preferences and provide flexibility. This emphasis on customization is becoming a key driver for brands looking to foster deeper engagement with these younger, digitally savvy consumers.
In response to Vision 2030, Saudi Arabia’s ambitious plan to diversify its economy and accelerate digital transformation, brands in the Kingdom are increasingly tapping into the preferences of Gen Z and Millennials. The growing popularity of digital gifting solutions reflects the broader trend toward mobile-first experiences, which younger consumers expect as part of their seamless shopping journeys[5].
With this market data in mind, YOUGotaGift has recently entered into a partnership with Panda, Saudi Arabia’s largest grocery retailer and one of the Middle East’s leading retail chains. This partnership reaffirms YOUGotaGift’s commitment to the gift card processing & program management market in Saudi Arabia, enhancing its offerings in addition to its well-established gift card distribution network capabilities.
YOUGotaGift’s expanding portfolio now includes partnerships with notable brands, such as eXtra—Saudi Arabia’s foremost consumer electronics and home appliance retailer; Salam Telecom—a rapidly growing telecommunications provider offering fixed-line and mobile services; and Giordano—a prominent international retailer of apparel and accessories. Through these collaborations, YOUGotaGift leverages its latest technology stack and extensive MENA region expertise to manage gift card operations for its partners, addressing Saudi consumers’ increasing preference for digital gift cards.
These partnerships are aimed at providing consumers with a seamless and flexible shopping experience, adapting to the Kingdom’s evolving digital landscape. By incorporating digital gift cards into loyalty programs and mobile commerce strategies, brands are aligning with Saudi Arabia’s Vision 2030 agenda, which emphasizes a digitally advanced economy. Consumers in the Kingdom, especially younger demographics, place high value on convenience and flexibility in their shopping and brand interactions.
Coinciding with YOUGotaGift’s recent participation at Seamless, a leading industry event, this partnership underscores the company’s role in the ongoing shift toward e-commerce and digitalization. As YOUGotaGift celebrates its 11th year of operations, several announcements are in the pipeline, promising further innovation and growth in the coming months.
Last Updated on 1 month by News Desk 1
