Canadian open-loop prepaid card growth will be driven by a broader transition away from cash and toward digital platforms—a trend heightened by the COVID-19 pandemic and remaining sticky thereafter.
The COVID-19 pandemic’s volatility and uncertainty affected all aspects of banking within Canada and globally. While the pandemic has undoubtedly created many challenges, it has also created significant opportunity within financial services. The Canadian open-loop prepaid card market—representing a diversity of market participants that deliver everything from open-loop gift cards to digital-first bank account alternatives and B2B commercial cards—was no exception.
Canadian Open-Loop Prepaid Card Market: 2021 Results and Forecast Update is the second iteration of research conducted by research and advisory firm Aite-Novarica Group and commissioned by Canadian Prepaid Providers Organization (CPPO), summarizing the Canadian open-loop prepaid card market’s resiliency through the COVID-19 pandemic, as well as sizing and forecasting the Canadian open-loop prepaid card market through 2025.
“Total loads on all Canadian open loop prepaid card accounts grew to an estimated CA$8.5 billion in 2021, up 18% since 2020 and 76% since 2019” said Francisco Alvarez-Evangelista, Advisor at Aite-Novarica Group and author of the new report. “Issuers and program managers should continue to explore new use cases for prepaid cards and look for opportunities to innovate with new digital-first card programs and other emerging payment forms that use prepaid card rails, while recognizing that in-person type transactions are also likely to rebound throughout 2022.”
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