Market Trends of Canada Prepaid Cards Industry
The Rising Use of Gifts Cards is Driving the Market
Canada's gift card market is growing, fueled by the surge in corporate gifting practices at events ranging from birthdays to festivals. Businesses increasingly turn to gift cards as a robust revenue source, bolstering their sales and overall income. This uptick in the market's value directly translates into higher holiday season spending by Canadians. Technological advancements are reshaping the landscape, allowing Canadians to purchase and receive digital gift cards seamlessly, primarily through prominent mobile wallets. Furthermore, major e-commerce players, including Amazon, amplify the appeal of gift and prepaid cards by offering enticing deals, particularly during festive periods.
The Rising Demand for Open Loop Card
Open-loop prepaid cards, encompassing credit, debit, gift, and prepaid cards, are versatile payment options accepted wherever their brand is recognized. Their adoption in Canada has been swift. Ownership of open-loop cards in Canada has steadily risen, translating into a surge in transaction volumes. Canada's credit card penetration exceeded 82% last year, bolstering user purchasing power. Concurrently, as Canada's employment levels rise, so does access to the banking system, further amplifying the market reach of open-loop cards. These dynamics propel open-loop cards to the forefront as a dominant segment in Canada's prepaid card market.
