Canadian prepaid segment ranks second among payment methods in terms of percentage of total payment volume growth boasting a 34.2% payment volume growth between 2015 and 2020. Canadian open-loop prepaid market is about to reach USD 7 billion in 2022, which is an 80% growth in two years. Covid-19 changed 44% of Canadians to change their payment preferences to digital and contactless long-term, and 42% are uncomfortable with handling cash.
There are 90 companies in the prepaid market in Canada in 2021, up 21% from 2020. Companies in the prepaid segment account for 1/6th of all pay techs in Canada and the majority of those are new FinTech entrants in 2021. Most of the new company launches and innovations are seen in Challenger Bank, Program Manager, and Service Provider segments. Challenger Banks has the highest percentage of the new FinTech entrants, 38% of the Challenger Banks in Canada offer prepaid cards. Out of the total 90 prepaid value chain players, 50% are headquartered in Canada and 60% of those 50 are based out of Ontario.
Kids/Teen banking is gaining traction in Canada to allow parents to easily give money to their children, track children’s spending, set tasks that need to be completed for earning an allowance, and help kids learn about savings. Real-time/early earnings access continues to grow in Canada and globally, by transferring payment to a prepaid card that can be used immediately.
Cryptocurrency marketplaces are launching prepaid cards for easier funding, withdrawing, and spending, among the many benefits of the growing prepaid industry in Canada, prepaid offers increased financial inclusion to the essential and growing gig economy, while also offering more choice and convenience to all Canadians. In support of post-pandemic economic recovery, it is anticipated that prepaid usage will ramp up quickly over the next few years in Canada.
The gift card market in Canada is expected to cross USD 7000 million in 2022, because of the increased popularity of corporate gifting cultures at special events like birthdays, incentives, festivals, and others in the Canada and United States, North America contributed the largest share in 2021. Gift cards have become one of the most lucrative revenue streams for businesses. Gift card technical innovations continue to enable significant sales and income production in businesses.
To support local businesses in Canada and to stimulate spending, which has been affected by the global pandemic, gift card companies are launching innovative programs in Canada. Downtown Sudbury Business Improvement Association (BIA) and Downtown London are also launching gift card programs to encourage consumers to visit and shop in Canada, this will support the growth of the prepaid industry in the future.
The average annual load per Canadian open-loop prepaid card account is around USD 160 per card in 2021. Open-loop prepaid cards are undergoing rapid adoption in niche Canadian markets, despite nearly all Canadians having existing banking relationships. drivers behind this growth are the gig economy, where contractors can receive wages on a prepaid card, and neo banks, where younger consumers are using app-based prepaid accounts. SMEs also increasing issuing Open-loop prepaid cards from nonbanks such as technology companies, e-commerce platforms, and accounting software providers, major tech brands such as Shopify, square and QuickBooks are issuing prepaid cards.
The report covers major players operating in the Canada Prepaid Cards Market. In terms of market share, few of the major players currently dominate the market. However, with technological advancement and service innovation, domestic to international companies are increasing their market presence by securing new contracts and tapping new markets. It has major players including Berkeley Payment Solutions, Blackhawk Network, Carta Worldwide, Master card, etc.,
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There are 90 companies in the prepaid market in Canada in 2021, up 21% from 2020. Companies in the prepaid segment account for 1/6th of all pay techs in Canada and the majority of those are new FinTech entrants in 2021. Most of the new company launches and innovations are seen in Challenger Bank, Program Manager, and Service Provider segments. Challenger Banks has the highest percentage of the new FinTech entrants, 38% of the Challenger Banks in Canada offer prepaid cards. Out of the total 90 prepaid value chain players, 50% are headquartered in Canada and 60% of those 50 are based out of Ontario.
Kids/Teen banking is gaining traction in Canada to allow parents to easily give money to their children, track children’s spending, set tasks that need to be completed for earning an allowance, and help kids learn about savings. Real-time/early earnings access continues to grow in Canada and globally, by transferring payment to a prepaid card that can be used immediately.
Cryptocurrency marketplaces are launching prepaid cards for easier funding, withdrawing, and spending, among the many benefits of the growing prepaid industry in Canada, prepaid offers increased financial inclusion to the essential and growing gig economy, while also offering more choice and convenience to all Canadians. In support of post-pandemic economic recovery, it is anticipated that prepaid usage will ramp up quickly over the next few years in Canada.
Key Market Trends
Emerging Digital Gift Card Solutions Driving the Market
The gift card market in Canada is expected to cross USD 7000 million in 2022, because of the increased popularity of corporate gifting cultures at special events like birthdays, incentives, festivals, and others in the Canada and United States, North America contributed the largest share in 2021. Gift cards have become one of the most lucrative revenue streams for businesses. Gift card technical innovations continue to enable significant sales and income production in businesses.
To support local businesses in Canada and to stimulate spending, which has been affected by the global pandemic, gift card companies are launching innovative programs in Canada. Downtown Sudbury Business Improvement Association (BIA) and Downtown London are also launching gift card programs to encourage consumers to visit and shop in Canada, this will support the growth of the prepaid industry in the future.
Significant Growth in Open-loop Prepaid Cards Boosting the Market
The average annual load per Canadian open-loop prepaid card account is around USD 160 per card in 2021. Open-loop prepaid cards are undergoing rapid adoption in niche Canadian markets, despite nearly all Canadians having existing banking relationships. drivers behind this growth are the gig economy, where contractors can receive wages on a prepaid card, and neo banks, where younger consumers are using app-based prepaid accounts. SMEs also increasing issuing Open-loop prepaid cards from nonbanks such as technology companies, e-commerce platforms, and accounting software providers, major tech brands such as Shopify, square and QuickBooks are issuing prepaid cards.
Competitive Landscape
The report covers major players operating in the Canada Prepaid Cards Market. In terms of market share, few of the major players currently dominate the market. However, with technological advancement and service innovation, domestic to international companies are increasing their market presence by securing new contracts and tapping new markets. It has major players including Berkeley Payment Solutions, Blackhawk Network, Carta Worldwide, Master card, etc.,
Additional Benefits:
- The market estimate (ME) sheet in Excel format
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Table of Contents
1 INTRODUCTION
4 MARKET DYNAMICS AND INSIGHTS
5 MARKET SEGMENTATION
6 COMPETITIVE LANDSCAPE
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Berkeley Payment Solutions
- Blackhawk Network
- Carta Worldwide
- Desjardins
- Digital Commerce Bank
- FSS Powering Payments
- Koho
- Mastercard
- EML
- Galileo
- Incomm
- Marqeta
- Mogo Inc*
Methodology
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