Canada Prepaid Cards Market Size (2024 - 2029)

The Canadian prepaid cards market is experiencing significant growth, driven by a shift towards digital and contactless payment preferences, accelerated by the Covid-19 pandemic. The market's expansion is characterized by the increasing number of companies, particularly new FinTech entrants, and the rising popularity of prepaid cards among Challenger Banks. This growth is further supported by the demand for financial products that cater to the gig economy and enhance financial inclusion. The market's trajectory indicates a rapid increase in prepaid card usage as part of Canada's post-pandemic economic recovery.

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Market Size of Canada Prepaid Cards Industry

Canada prepaid cards market
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

Canada Prepaid Cards Market Major Players

*Disclaimer: Major Players sorted in no particular order

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 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
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Canada Prepaid Cards Market Size Summary

The Canadian prepaid cards market is experiencing significant growth, driven by a shift towards digital and contactless payment methods. This transition has been accelerated by the COVID-19 pandemic, which prompted a substantial portion of the population to prefer digital transactions over cash. The market is characterized by a diverse range of players, including Challenger Banks, Program Managers, and Service Providers, with a notable increase in FinTech entrants. The market's expansion is further supported by the growing popularity of prepaid cards among children and teenagers, as well as the integration of real-time earnings access. Additionally, the cryptocurrency sector is contributing to the market's growth by offering prepaid cards for easier transactions.

The gift card segment within the prepaid market is also thriving, fueled by the corporate gifting culture and innovative programs aimed at supporting local businesses post-pandemic. Open-loop prepaid cards are gaining traction, particularly in the gig economy and among neo banks, where younger consumers prefer app-based solutions. Major technology companies and e-commerce platforms are increasingly issuing these cards, enhancing their appeal and accessibility. The market is dominated by a few key players, but technological advancements and service innovations are enabling both domestic and international companies to expand their presence. Partnerships and new product offerings, such as digital gift card marketplaces, are further driving the market's growth and adoption.

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Canada Prepaid Cards Market Size - Table of Contents

  1. 1. MARKET DYNAMICS AND INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 Insights on Various Regulatory Landscape

    5. 1.5 Insights on impact of technology and innovation in the market

    6. 1.6 Industry Attractiveness - Porters' Five Forces Analysis

      1. 1.6.1 Threat of New Entrants

      2. 1.6.2 Bargaining Power of Buyers

      3. 1.6.3 Bargaining Power of Suppliers

      4. 1.6.4 Threat of Substitutes

      5. 1.6.5 Intensity of Competitive Rivalry

    7. 1.7 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Offering

      1. 2.1.1 General Purpose Card

      2. 2.1.2 Gift card

      3. 2.1.3 Government Benefit card

      4. 2.1.4 Incentive/Payroll card

      5. 2.1.5 Others

    2. 2.2 By Card type

      1. 2.2.1 Closed-loop card

      2. 2.2.2 Open-loop card

    3. 2.3 By End-user

      1. 2.3.1 Retail

      2. 2.3.2 Corporate

      3. 2.3.3 Government

Canada Prepaid Cards Market Size FAQs

The Canada Prepaid Cards Market is projected to register a CAGR of greater than 4% during the forecast period (2024-2029)

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

Canada Prepaid Cards Market Report Snapshots

Canada Prepaid Cards Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)