Market Size of Canada Credit Cards Industry
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 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 Size Summary
The Canadian credit card market is characterized by its significant role in consumer transactions, with credit cards being the preferred payment method for many Canadians, especially in e-commerce. The market is marked by a diverse range of offerings from numerous institutions, including banks, credit unions, and retailers, providing options such as standard, premium, and low-rate cards. The pandemic accelerated the shift towards electronic payments, with credit cards serving as a crucial tool for both online and in-store transactions, offering benefits like interest-free credit, rewards, and enhanced security features. The market's growth is further supported by strategic collaborations between credit card companies and e-commerce platforms, which enhance the appeal of credit cards through various offers and discounts.
The competitive landscape of the Canadian credit card market is intense, with both international and regional players striving to differentiate their products and expand their market share. Major players like Visa, MasterCard, American Express, and Discover dominate the market, with Visa maintaining a strong presence due to its wide acceptance and reliable services. The market remains relatively balanced between Visa and the domestic scheme Interac, a unique feature compared to other countries. Companies such as Canadian Tire Corporation, CIBC, and Scotiabank are key participants, actively engaging in strategic acquisitions and technological advancements to enhance their offerings. Recent developments, such as HSBC Holdings' sale of its Canadian unit to Royal Bank of Canada and Desjardins Group's partnership with Finserv Inc., highlight ongoing efforts to streamline operations and introduce innovative solutions in the credit card sector.
Canada Credit Cards Market Size - Table of Contents
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1. MARKET DYNAMICS AND INSIGHTS
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 Usage of Credit Card and Bonus and Reward Points Associated
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1.2.2 Easy Re-payment Option such as EMI
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1.3 Market Restraints
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1.3.1 High Interest Rates on Credit Card
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1.3.2 Rising Fraud and Security issues of Credit Cards
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1.4 Market Opportunities
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1.4.1 Digital Payments and Online Portals Usage of Credit Cards
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1.4.2 Partnership and Co-branding with Companies for Discounts and Bonus Points
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1.5 Industry Value Chain Analysis
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1.6 Industry Attractiveness - Porters' Five Forces Analysis
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1.6.1 Threat of New Entrants
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1.6.2 Bargaining Power of Buyers
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1.6.3 Bargaining Power of Suppliers
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1.6.4 Threat of Substitutes
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1.6.5 Intensity of Competitive Rivalry
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1.7 Insights on Technology Innovation in the Market
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1.8 Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By Card Type
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2.1.1 General Purpose Credit Cards
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2.1.2 Specialty & Other Credit Cards
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2.2 By Application
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2.2.1 Food & Groceries
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2.2.2 Health & Pharmacy
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2.2.3 Restaurants & Bars
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2.2.4 Consumer Electronics
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2.2.5 Media & Entertainment
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2.2.6 Travel & Tourism
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2.2.7 Other Applications
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2.3 By Provider
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2.3.1 Visa
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2.3.2 MasterCard
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2.3.3 Other Providers
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Canada Credit Cards Market Size 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.