Canada Credit Cards Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 574.36 Billion |
| Market Size (2029) | USD 744.99 Billion |
| CAGR (2024 - 2029) | 5.34 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Canada Credit Cards Market Analysis
The Canada Credit Cards Market size in terms of transaction value is expected to grow from USD 574.36 billion in 2024 to USD 744.99 billion by 2029, at a CAGR of 5.34% during the forecast period (2024-2029).
Credit cards hold immense value for consumers and retailers alike, with most Canadians utilizing them for payments rather than borrowing. These cards offer interest-free credit from the time of purchase until the end of the billing cycle. Over 70% of Canadians diligently clear their monthly credit card balances, enjoying a zero interest rate. With nearly 90% of adult Canadians possessing at least one credit card, it is the go-to payment method for most e-commerce transactions. Banks give consumers various options, including standard cards sans annual fees, premium cards with rewards, and low-rate cards for those prioritizing interest rates. Canada boasts a diverse credit card landscape, with offerings from hundreds of institutions, including banks, credit unions, and retailers.
During the pandemic, Canadians leaned heavily on electronic payments, but a notable proportion still clung to cash. Credit cards emerged as a lifeline, serving as a credit source in emergencies and a preferred payment mode as online transactions surged. Even as physical stores shuttered, credit cards retained their significance, enabling smooth transactions, rewarding consumers, and providing robust safeguards like liability limitations and heightened security.
Canada Credit Cards Market Trends
Offers and Discounts are Steadily Increasing the Usage of Credit Cards
In Canada, consumers pay for transactions using several payment methods, including cash, debit, and credit cards. Since a payment method can be used if accepted at the point of sale, the merchant has an important role in the fast growth of cash and other payment methods. Credit cards have remained Canada's most used payment method. Canada has a relatively high credit card usage penetration in the market. Credit cards have various offers, discounts, and EMI options, making them a better choice for consumers to pay for multiple products. The credit card companies have tie-ups and collaborations with various e-commerce websites and other payment portals. This boosts the growth of the credit card market in Canada.
Visa Holds the Majority Share in Payment System
Visa is a significant processing network, and businesses accept their cards in more than 200 countries and territories worldwide. Other payment processing companies owning networks include MasterCard, American Express, and Discover. Visa is a solid choice, as it ensures wide acceptance and access to various programs and products. The market distribution between Visa and the domestic scheme Interac in Canada remained relatively unchanged over the years. This balance is unique to Canada, as in most other countries, the market shares of card brands did change notably during the observed timeframe. Visa-branded cards offer a secure and reliable way to pay for all needs anywhere in the world. Also, with a Visa-branded card, one can access cash at over 2.5 million ATMs worldwide.
Canada Credit Cards Industry Overview
The Canadian credit card market exhibits intense competition and fragmentation, with international and regional players introducing new technologies to cater to diverse end-use sectors. Key market participants actively enhance their offerings, leverage low-interest rates, and focus on product differentiation. Additionally, these players are pursuing strategic acquisitions and expansions to bolster their portfolios and transaction volumes. The Canadian credit card market includes companies such as Canadian Tire Corporation, Triangle Rewards, CIBC, Royal Bank of Canada, and Scotiabank.
Canada Credit Cards Market Leaders
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Canadian Tire Corporation
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Triangle Rewards
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CIBC
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Royal Bank of Canada
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Scotiabank
*Disclaimer: Major Players sorted in no particular order
Canada Credit Cards Market News
- March 2024: HSBC Holdings successfully concluded the sale of its Canadian unit, HSBC Bank Canada, to Royal Bank of Canada (RBC) for a total transaction value of CAD 13.5 billion (equivalent to USD 9.96 billion).
- January 2023: Desjardins Group, North America's largest financial cooperative, announced its intention to shift its credit card processing operations to Finserv Inc. Finserv, a prominent global player in payments and financial services technology, will consolidate Desjardins' management of various card portfolios, including consumer, commercial, prepaid, and business lines of credit, onto a unified platform. This move is expected to generate synergies, enabling Desjardins to introduce enhanced offerings for both its consumer members and business clients.
Canada Credit 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
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4.2 Market Drivers
- 4.2.1 Usage of Credit Card and Bonus and Reward Points Associated
- 4.2.2 Easy Re-payment Option such as EMI
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4.3 Market Restraints
- 4.3.1 High Interest Rates on Credit Card
- 4.3.2 Rising Fraud and Security issues of Credit Cards
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4.4 Market Opportunities
- 4.4.1 Digital Payments and Online Portals Usage of Credit Cards
- 4.4.2 Partnership and Co-branding with Companies for Discounts and Bonus Points
- 4.5 Industry Value Chain Analysis
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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 Insights on Technology Innovation in the Market
- 4.8 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
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5.1 By Card Type
- 5.1.1 General Purpose Credit Cards
- 5.1.2 Specialty & Other Credit Cards
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5.2 By Application
- 5.2.1 Food & Groceries
- 5.2.2 Health & Pharmacy
- 5.2.3 Restaurants & Bars
- 5.2.4 Consumer Electronics
- 5.2.5 Media & Entertainment
- 5.2.6 Travel & Tourism
- 5.2.7 Other Applications
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5.3 By Provider
- 5.3.1 Visa
- 5.3.2 MasterCard
- 5.3.3 Other Providers
6. COMPETITIVE LANDSCAPE
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6.1 Company Profiles
- 6.1.1 Canadian Tire Corporation
- 6.1.2 Triangle Rewards
- 6.1.3 CIBC
- 6.1.4 Royal Bank of Canada
- 6.1.5 Scotiabank
- 6.1.6 TD Bank
- 6.1.7 Costco Mastercard
- 6.1.8 Air Canada Partnership
- 6.1.9 BMO
- 6.1.10 Tangerine Bank
- 6.1.11 Desjardins Group*
- *List Not Exhaustive
7. MARKET FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
Canada Credit Cards Industry Segmentation
A credit card, typically a thin rectangular piece made of plastic or metal, is issued by banks or financial services firms. It enables cardholders to borrow funds for purchases at merchants accepting card payments. The report on the Canadian credit card market offers a comprehensive analysis. It delves into the economic backdrop, presents a market overview, estimates segment-wise market sizes, highlights emerging trends, explores market dynamics, and profiles key companies.
The market is segmented by card type, application, and provider. By card type, the market is further segmented into general-purpose credit cards and specialty & other credit cards. By application, the market is further segmented into food & groceries, health & pharmacy, restaurants & bars, consumer electronics, media & entertainment, travel & tourism, and other applications. By provider, the market is further segmented into Visa, MasterCard, and other providers. The report offers market size and forecasts in value terms (USD) for all the above segments.
| By Card Type | General Purpose Credit Cards |
| Specialty & Other Credit Cards | |
| By Application | Food & Groceries |
| Health & Pharmacy | |
| Restaurants & Bars | |
| Consumer Electronics | |
| Media & Entertainment | |
| Travel & Tourism | |
| Other Applications | |
| By Provider | Visa |
| MasterCard | |
| Other Providers |
Canada Credit Cards Market Research FAQs
How big is the Canada Credit Cards Market?
The Canada Credit Cards Market size is expected to reach USD 574.36 billion in 2024 and grow at a CAGR of 5.34% to reach USD 744.99 billion by 2029.
What is the current Canada Credit Cards Market size?
In 2024, the Canada Credit Cards Market size is expected to reach USD 574.36 billion.
Who are the key players in Canada Credit Cards Market?
Canadian Tire Corporation, Triangle Rewards, CIBC, Royal Bank of Canada and Scotiabank are the major companies operating in the Canada Credit Cards Market.
What years does this Canada Credit Cards Market cover, and what was the market size in 2023?
In 2023, the Canada Credit Cards Market size was estimated at USD 543.69 billion. The report covers the Canada Credit Cards Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Canada Credit Cards Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Canada Credit Cards Industry Report
Statistics for the 2024 Canada Credit Cards market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Canada Credit Cards analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
