Canada's prepaid industry reaches USD 5 bln in loads in 2019; drives fintech sector

Tuesday 14 July 2020 12:33 CET | News

In Canada, prepaid has been harnessed by incumbents and new fintech entrants as a platform to introduce new and innovative digital banking and payment products and services.

According to a study commissioned by the Canadian Prepaid Providers Organization (CPPO), the collective voice of the open-loop prepaid payments industry in Canada, and conducted by Mercator Advisory Group, in 2019 USD 4.8 billion in total dollars were loaded onto open-loop prepaid across corporate, government, and consumer-funded cards, a 12% increase from 2018.

General Purpose Reloadable (GPR) cards—used as a bank account alternative—recorded 10% growth in 2019, driven by new fintech companies offering digital banking and payment solutions on the prepaid platform.

Market trends spotted by the report include:

  • Prepaid is enabling real-time pay for gig workers.
  • Canada’s challenger banks continue to gain traction, with over 2 million accounts to date.
  • SME solutions offered by challenger banks provide a big market opportunity for Canadian players.
  • Fintech companies are harnessing the power of Digital ID companies to speed KYC/AML compliance processes when onboarding open-loop prepaid cards.
  • Prepaid support business processes such as automated insurance claim adjudication and employee benefit payments.
  • Amid the COVID-19 crisis, governments, and charities all over the world turned to prepaid for an immediate, inclusive means to distribute benefits and emergency funds.

More: Link

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Keywords: prepaid cards, SMEs, fintechs, cards, banks, gig workers, challenger banks, Canada, Canadian Prepaid Providers Organization, CPPO
Categories: Banking & Fintech
Countries: Canada
This article is part of category

Banking & Fintech