Opportunities for the Public and Private Sectors in the Canadian Prepaid Market

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Prepaid payment markets around the world are expanding and becoming more developed. Canada's payment card market is also exhibiting growth in its prepaid segment and offering a wider variety of products. Canadian consumers are highly familiar with prepaid gift cards, which were initially offered by only a limited number of retailers during the holiday season. However, as merchants and consumers realized their benefits, gifts cards are now offered year round by almost all retailers. Similarly, the advantages of prepaid products and programs are becoming more evident to other segments of the Canadian payment market, in both the public and private sector. The issuance of paychecks on prepaid cards can be beneficial for employers as well as employees in Canada. Likewise, issuing government benefits payments on prepaid cards can reduce costs for the government of Canada as well as provide more convenience for benefits recipients. There are certainly many potential opportunities for growth in Canada's prepaid market and numerous benefits to be reaped.

Opportunities for the Public and Private Sectors in the Canadian Prepaid Market, a new research report by Mercator Advisory Group.

Prepaid payment markets around the world are expanding and becoming more developed. Canada's payment card market is also exhibiting growth in its prepaid segment and offering a wider variety of products. Canadian consumers are highly familiar with prepaid gift cards, which were initially offered by only a limited number of retailers during the holiday season. However, as merchants and consumers realized their benefits, gifts cards are now offered year round by almost all retailers. Similarly, the advantages of prepaid products and programs are becoming more evident to other segments of the Canadian payment market, in both the public and private sector. The issuance of paychecks on prepaid cards can be beneficial for employers as well as employees in Canada. Likewise, issuing government benefits payments on prepaid cards can reduce costs for the government of Canada as well as provide more convenience for benefits recipients. There are certainly many potential opportunities for growth in Canada's prepaid market and numerous benefits to be reaped.                

Report Highlights:

  • An overview and analysis of current prepaid market segments in Canada
  • A review of the Canadian gift card market: recent trends and developments
  • A discussion of payroll cards in Canada: available products, potential benefits for employers and employees
  • An examination of prepaid and government benefits payments in Canada: annual volume, potential programs, international examples
  • A review of selected prepaid products and programs in the Canadian market, including transit and campus cards

"In Canada, gift cards currently dominate the prepaid market, however, there is certainly potential for growth across other segments. Opportunities exist for retailers, banks, financial institutions, third-party companies, and many other players," notes Elisa Athonvarangkul, Analyst, International Advisory Service. "As Canadian consumers become increasingly aware of the variety and benefits of prepaid payment products ... the high potential for growth is irrefutable."

The most recent report from Mercator's International Advisory Service provides an overview of current prepaid market segments in Canada. The report presents a review of recent trends and development in the gift card market, a discussion of payroll cards in Canada, an examination of potential prepaid government benefits payments programs, and a review of selected prepaid products and programs in the Canadian market, including electronic toll passes, transit fare cards and campus cards.

Members of Mercator Advisory Group have access to these reports as well as the upcoming research for the year ahead, presentations, analyst access and other membership benefits. Please visit us online at http://www.mercatoradvisorygroup.com.

For more information call Mercator Advisory Group's main line: 781-419-1700 or send email to info@mercatoradvisorygroup.com.

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ROBERT MISASI
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