Market Trends of Canada Prepaid Cards Industry
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.
