Market Size of Canada Prepaid Cards Industry
| 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 |
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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.
