Canada Prepaid Cards Market – Growth, Trends, COVID-19 Impact and Forecast (2022-2027)

Canada Prepaid Cards Market is segmented by Offering (General purpose card, Gift card, Government benefit card, Incentive/Payroll card, and others), by Card type (Closed-loop card and Open-loop card), and by End-user (Retail, Corporate, and Government).

Market Snapshot

Canada prepaid cards market
Study Period: 2018-2027
Base Year: 2021
CAGR: >4 %

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Market Overview

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 were 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.

Scope of the Report

Prepaid card is a kind of payment card, one can use to purchase or pay for bills like credit cards or debit cards. Banks, financial institutions, and others issue these cards with loaded funds. Users can make a transaction without having to pay interest in the future. The Canadian prepaid cards market is segmented by offering (general purpose card, gift card, government benefit card, incentive/payroll card, and others), by card type (closed-loop card and open-loop card), and by end-user (retail, corporate, and government).

By Offering
General Purpose Card
Gift card
Government Benefit card
Incentive/Payroll card
Others
By Card type
Closed-loop card
Open-loop card
By End-user
Retail
Corporate
Government

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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 Canada and the United States, North America, which contributed to 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.

Canada Prepaid Cards Market

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 are also increasingly issuing Open-loop prepaid cards from nonbanks such as technology companies, e-commerce platforms, and accounting software providers, and major tech brands such as Shopify, square, and QuickBooks are issuing prepaid cards.

Canada prepaid cards market

Competitive Landscape

The report covers major players operating in the Canadian 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.,

Recent Developments

  • On April 19, 2022, EML partnered with Zayzoon. This partnership will help its employees. They can easily sign-up for a Visa prepaid card within the ZayZoon app and receive their earned wages immediately.
  • On February 24, 2022, Simplii Financial launched an industry-first digital gift card marketplace. Simplii clients can now send prepaid Visa gift cards of up to USD 250 to anyone in Canada through online and mobile banking.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS AND INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Insights on Various Regulatory Landscape

    5. 4.5 Insights on impact of technology and innovation in the market

    6. 4.6 Industry Attractiveness - Porters' Five Forces Analysis

      1. 4.6.1 Threat of New Entrants

      2. 4.6.2 Bargaining Power of Buyers

      3. 4.6.3 Bargaining Power of Suppliers

      4. 4.6.4 Threat of Substitutes

      5. 4.6.5 Intensity of Competitive Rivalry

    7. 4.7 Impact of COVID-19 on the Market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Offering

      1. 5.1.1 General Purpose Card

      2. 5.1.2 Gift card

      3. 5.1.3 Government Benefit card

      4. 5.1.4 Incentive/Payroll card

      5. 5.1.5 Others

    2. 5.2 By Card type

      1. 5.2.1 Closed-loop card

      2. 5.2.2 Open-loop card

    3. 5.3 By End-user

      1. 5.3.1 Retail

      2. 5.3.2 Corporate

      3. 5.3.3 Government

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Concetration Overview

    2. 6.2 Company Profiles

      1. 6.2.1 Berkeley Payment Solutions

      2. 6.2.2 Blackhawk Network

      3. 6.2.3 Carta Worldwide

      4. 6.2.4 Desjardins

      5. 6.2.5 Digital Commerce Bank

      6. 6.2.6 FSS Powering Payments

      7. 6.2.7 Koho

      8. 6.2.8 Mastercard

      9. 6.2.9 EML

      10. 6.2.10 Galileo

      11. 6.2.11 Incomm

      12. 6.2.12 Marqeta

      13. 6.2.13 Mogo Inc*

    3. *List Not Exhaustive
  7. 7. MARKET OPPORTUNTIES AND FUTURE TRENDS

  8. 8. DISCLAIMER AND ABOUT US

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Frequently Asked Questions

The Canada Prepaid Cards Market market is studied from 2018 - 2027.

The Canada Prepaid Cards Market is growing at a CAGR of >4% over the next 5 years.

Berkeley Payment Solutions, Blackhawk Network, Carta Worldwide, Koho, Desjardins are the major companies operating in Canada Prepaid Cards Market.

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