Canada's Cards and Payments Industry: Emerging Opportunities, Trends, Size, Drivers, Strategies, Products and Competitive Landscape

Canada's Cards and Payments Industry: Emerging Opportunities, Trends, Size, Drivers, Strategies, Products and Competitive Landscape

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The Canadian card payments channel recorded growth during the review period (2008-2012). In terms of the volume of cards in circulation, the card payments channel posted a review-period CAGR of 4.55% to reach 153.1 million cards in 2012. Growth in consumer spending, a shift in consumer preference towards cashless transactions, and the increased acceptance of cards by retailers contributed to the growth of the Canadian card payments channel. The volume of cards in circulation is expected to post a forecast-period (2013-2017) CAGR of 4.66%, to reach 190.8 million cards in 2017. The Canadian card payments channel grew substantially both in volume and value terms during the review period. In terms of the number of transactions, the channel grew from 7.2 billion in 2008 to 8.5 billion in 2012, at a review-period CAGR of 4.27%. Debit card transactions were the key driver, followed by charge cards. The growing demand for prepaid and credit cards among Canadian consumers also contributed to the growth of the number of transactions during the review period. Over the forecast period, total card transactions volume is expected to post a forecast-period CAGR of 3.57%, to reach 10.2 billion in 2017.

Report Highlights
  • Credit cards was the largest category in the card payments channel in 2012, accounting for a 51.8% share. The second-largest share was occupied by the debit card category with 24.5%. The prepaid cards category followed with 20.6% and the charge cards category accounted for 3.1%.
  • Consumers are slowly moving away from cash and adopting other modes of payment such as cards and electronic fund transfers. While cash continues to be an important part of the payments system, it is increasingly being displaced by non-cash channels. The share of cash transactions fell during the review period, from 2.3% in 2008 to 2.0% in 2012.
  • Commercial banks and retailers have been aggressively promoting contactless payment technology to increase the speed and convenience of payments for consumers. The technology also offers improved security and helps to control fraudulent transactions. The major contactless payment technologies used in Canada include Interac's Interac Flash, Visa's payWave and MasterCard's PayPass.
  • Banks and retail outlets in Canada expanded their infrastructure networks during the review period. The number of automatic teller machines (ATMs) installed increased from 57,900 in 2008 to 60,346 in 2012, at a review-period CAGR of 1.04%. The increasing acceptance of debit and credit cards at retail outlets and a consumer shift towards direct card purchases resulted in a rising number of point of sale (POS) transactions during the review period.
Report Scope
  • This report provides a comprehensive analysis of Canada's cards and payments industry.
  • It provides current values for Canada's cards and payments industry for 2012 and forecast figures for 2017.
  • It details the different macroeconomic, infrastructural, consumer and business drivers affecting Canada's cards and payments industry.
  • It outlines the current regulatory framework in the industry.
  • It details the marketing strategies used by various bankers and other institutions.
  • It profiles the major banks in Canada's cards and payments industry.
Reasons to Get this Report
  • Make strategic business decisions using historic and forecast market data related to Canada's cards and payments industry and each market within it.
  • Understand the key market trends and growth opportunities within Canada's cards and payments industry.
  • Assess the competitive dynamics in Canada's cards and payments industry.
  • Gain insights into the marketing strategies used for selling various types of cards in Canada.
  • Gain insights into key regulations governing Canada's cards and payments industry.


Table of Contents

1 Executive Summary
2 Analysis of Market Environment, Key Trends and Drivers
2.1 Payment Infrastructure and Emerging Technologies
2.1.1 ATMs
2.1.2 POS terminals
2.1.3 Internet and smartphone penetration
2.1.4 Advanced security measures
2.1.5 Network-related advancements
2.2 Business Drivers
2.2.1 Mobile payments
2.2.2 E-commerce dynamics
2.2.3 Increasing competition
2.2.4 Increased corporate and government use of prepaid cards
2.3 Economic Drivers
2.3.1 GDP per capita
2.3.2 Positive job market
2.3.3 Large economically-active population
3 Cards and Payments Industry Share Analysis
3.1 Industry Overview
3.1.1 Cash
3.1.2 Checks
3.1.3 Direct debit
3.1.4 Credit transfer
3.1.5 Cards
4 Regulatory Framework and Card Fraud Statistics
4.1 Regulatory Framework
4.1.1 Regulations pertaining to cards
4.1.2 Anti-money laundering framework
4.1.3 Foreign direct investment (FDI) regulation
4.2 Card Fraud Statistics
4.2.1 Card-not-present
4.2.2 Counterfeit cards
4.2.3 Cards lost or stolen
5 Emerging Consumer Attitudes and Trends
5.1 Market Segmentation and Targeting
5.1.1 Retail segment
5.1.2 Corporate segment
5.2 Travel and Tourism Spending
5.2.1 Outbound tourists volume
5.2.2 Outbound tourist expenditure
5.3 Retail Card Spending
5.3.1 Analysis by product categories
5.3.2 Analysis by retail channels
6 Analysis of Card Payments and Growth Prospects
6.1 Channel Share Analysis by Card Category
6.2 Size and Forecast of the Card Payments Channel
6.2.1 Analysis by volume of cards in circulation
6.2.2 Analysis by transaction value
7 Analysis of Credit Card Payments and Growth Prospects
7.1 Overall Category Size and Forecast
7.1.1 Analysis by volume of cards in circulation
7.1.2 Analysis by transaction value
7.1.3 Analysis by transaction volume
7.2 Transaction Share Analysis by Channel
7.2.1 Analysis by transaction value
7.2.2 Analysis by transaction volume
7.3 Personal Credit Cards Sub-Category Size and Forecast
7.3.1 Analysis by volume of cards in circulation
7.3.2 Analysis by transaction value
7.3.3 Analysis by transaction volume
7.4 Commercial Credit Cards Sub-Category Size and Forecast
7.4.1 Analysis by number of cards in circulation
7.4.2 Analysis by transaction value
7.4.3 Analysis by transaction volume
7.5 Competitive Landscape
7.5.1 Scheme share analysis
7.5.2 Issuer share analysis
8 Analysis of Debit Card Payments and Growth Prospects
8.1 Overall Category Size and Forecast
8.1.1 Analysis by volume of cards in circulation
8.1.2 Analysis by transaction value
8.1.3 Analysis by transaction volume
8.2 Transaction Share Analysis by Channel
8.2.1 Analysis by transaction value


Companies Mentioned:

Canadian Imperial Bank of Commerce
Royal Bank of Canada
Bank of Montreal
TD Canada Trust
Scotiabank
MasterCard
Visa
American Express
Diners Club
Moneris Solutions Corporation
First Data
Elavon
Heartland Payment Systems