Canada Cards and Payments - Opportunities and Risks to 2024

Canada Cards and Payments - Opportunities and Risks to 2024

  • April 2021 •
  • 89 pages •
  • Report ID: 6026622 •
  • Format: PDF
Canada Cards and Payments - Opportunities and Risks to 2024

Summary
’Canada Cards and Payments - Opportunities and Risks to 2024’ report provides detailed analysis of market trends in the Canadian cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including cash, cards, credit transfers, direct debits, mobile wallets, and cheques during the review-period (2016-20e).

The report also analyzes various payment card markets operating in the industry, and provides detailed information on the number of cards in circulation, transaction values and volumes during the review-period and over the forecast-period (2020e-24f). It also offers information on the country’s competitive landscape, including the market shares of issuers and schemes.

The report brings together research, modeling, and analysis expertise to allow banks and card issuers to identify segment dynamics and competitive advantages. The report also covers details of regulatory policy and recent changes in the regulatory structure.

This report provides top-level market analysis, information and insights into the Canadian cards and payments industry, including -
- Current and forecast values for each market in the Canadian cards and payments industry, including debit, credit and charge cards.
- Detailed insights into payment instruments including cash, cards, credit transfers, direct debits, mobile wallets, and cheques. It also includes an overview of the country’s key alternative payment instruments.
- E-commerce market analysis.
- Analysis of various market drivers and regulations governing the Canadian cards and payments industry.
- Detailed analysis of strategies adopted by banks and other institutions to market debit, credit and charge cards.

Scope
- The outbreak of COVID-19 has resulted in a significant shift in preference for consumers towards the use of contactless payment methods. According to the results of a survey conducted by Payments Canada in November 2020, approximately 47% of Canadians surveyed report using their contactless debit and credit cards more often than pre-COVID, and 50% of Canadians tried not to exceed the contactless limit when buying something in-store. To capitalize on the growing adoption of contactless payments, in February 2021, Ottawa-based public transit agency OC Transpo introduced the acceptance of contactless Mastercard and Visa credit cards as well as mobile payment apps and smartwatches that use Apple Pay or Google Pay loaded with Visa or Mastercard to make payments for train fares.
- Buy-now-pay-later (BNPL) services are widely used in the country’s payments market, with several payment providers now offering this service. In January 2021, US-based BNPL service provider Affirm expanded into the Canadian payment market by acquiring PayBright, a Canadian BNPL provider. Affirm offers BNPL services on online transactions and charges zero late fees, prepayment fees, or annual fees but the payments may include a small interest component depending on the transaction value of the purchase. Customers can choose a repayment duration that ranges from three to 12 months. Earlier in August 2020, Afterpay, an Australian BNPL service provider, expanded its services to Canada. The provider enables its users to make interest-free credit payments in four instalments for both in-store and online transactions.
- To cater to the rapidly changing preferences of consumers as a result of the increasing adoption of technological advancements, in 2016, Payments Canada launched the Modernization Program, a multi-year initiative to develop a payments system that is fast, flexible, secure, and strengthens Canada’s competitive position. As part of this initiative, Payments Canada is currently developing multiple payment systems, the first being Lynx, which is a high-value payments system replacing the existing large-value transfer system. The improved system will enable banks and credit unions to make large value transfers in a faster and more secure manner and is scheduled to launch in September 2021. The second innovation includes the development of a real-time payment system for retail customers known as Real-Time Rail, which is expected to go live in 2022.

Reasons to Buy
- Make strategic business decisions, using top-level historic and forecast market data, related to the Canadian cards and payments industry and each market within it.
- Understand the key market trends and growth opportunities in the Canadian cards and payments industry.
- Assess the competitive dynamics in the Canadian cards and payments industry.
- Gain insights into marketing strategies used for various card types in Canada.
- Gain insights into key regulations governing the Canadian cards and payments industry.
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