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Pandemic Created Many Challenges and Opportunities within Canadian Open-Loop Prepaid Card Market, Says Aite-Novarica Group


Pandemic Created Many Challenges and Opportunities within Canadian Open-Loop Prepaid Card Market, Says Aite-Novarica Group

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.” 

preview of the report is available online, and desk copies are available to qualified media. Please contact [email protected] or call Kaitlyn Labbe at +1.857.327.9442 for more information.

About Aite-Novarica Group:
Aite-Novarica Group is an advisory firm providing mission-critical insights on technology, regulations, strategy, and operations to hundreds of banks, insurers, payments providers, and investment firms—as well as the technology and service providers that support them. Comprising former senior technology, strategy, and operations executives as well as experienced researchers and consultants, our experts provide actionable advice to our client base, leveraging deep insights developed via our extensive network of clients and other industry contacts. Visit us on the web and connect with us on Twitter and LinkedIn.

Press Contact:
Kaitlyn Labbe
Public Relations
[email protected]