Canada Prepaid Cards Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 4.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Canada Prepaid Cards Market Analysis
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.
Canada Prepaid Cards Market Trends
This section covers the major market trends shaping the Canada Prepaid Cards Market according to our research experts:
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.
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 Industry Overview
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.,
Canada Prepaid Cards Market Leaders
Berkeley Payment Solutions
Blackhawk Network
Carta Worldwide
Koho
Desjardins
*Disclaimer: Major Players sorted in no particular order
Canada Prepaid Cards Market News
- 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.
Canada Prepaid Cards Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Insights on Various Regulatory Landscape
4.5 Insights on impact of technology and innovation in the market
4.6 Industry Attractiveness - Porters' Five Forces Analysis
4.6.1 Threat of New Entrants
4.6.2 Bargaining Power of Buyers
4.6.3 Bargaining Power of Suppliers
4.6.4 Threat of Substitutes
4.6.5 Intensity of Competitive Rivalry
4.7 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Offering
5.1.1 General Purpose Card
5.1.2 Gift card
5.1.3 Government Benefit card
5.1.4 Incentive/Payroll card
5.1.5 Others
5.2 By Card type
5.2.1 Closed-loop card
5.2.2 Open-loop card
5.3 By End-user
5.3.1 Retail
5.3.2 Corporate
5.3.3 Government
6. COMPETITIVE LANDSCAPE
6.1 Market Concetration Overview
6.2 Company Profiles
6.2.1 Berkeley Payment Solutions
6.2.2 Blackhawk Network
6.2.3 Carta Worldwide
6.2.4 Desjardins
6.2.5 Digital Commerce Bank
6.2.6 FSS Powering Payments
6.2.7 Koho
6.2.8 Mastercard
6.2.9 EML
6.2.10 Galileo
6.2.11 Incomm
6.2.12 Marqeta
6.2.13 Mogo Inc*
- *List Not Exhaustive
7. MARKET OPPORTUNTIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
Canada Prepaid Cards Industry Segmentation
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 |
Canada Prepaid Cards Market Research FAQs
What is the current Canada Prepaid Cards Market size?
The Canada Prepaid Cards Market is projected to register a CAGR of greater than 4% during the forecast period (2024-2029)
Who are the key players in Canada Prepaid Cards Market?
Berkeley Payment Solutions, Blackhawk Network, Carta Worldwide, Koho and Desjardins are the major companies operating in the Canada Prepaid Cards Market.
What years does this Canada Prepaid Cards Market cover?
The report covers the Canada Prepaid Cards Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Canada Prepaid Cards Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Canada Prepaid Cards Industry Report
Statistics for the 2024 Canada Prepaid Cards market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Canada Prepaid Cards analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
