New research from the Canadian Prepaid Providers Organization (CPPO) and Datos Insights reveals that the Canadian open-loop prepaid card market continues to grow and is poised to reach $19 billion in annual loads by 2028.
Growth in the industry is evident as total loads on all Canadian prepaid card accounts surged from an estimated $10.8 billion in 2021 to approximately $11.4 billion in 2023, reflecting a 5% increase.
Canada had approximately 54 million open prepaid accounts by year-end 2021, growing to about 63 million by year-end 2023.
The report notes that prepaid programs in Canada are trendsetters in the greater financial services sectors.
In 2023, consumer general purpose reloadable (GPR) programs accounted for 44% of all Canadian prepaid account loads, totalling approximately $5.0 billion, a 21% increase from 2022.
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Consumer GPR card programs and providers now offer digital-first banking options with straightforward fee models. These options include child and teen banking, instant access to pay, as well as savings, budgeting, and credit-building features.
These innovations have caught the attention of consumers, helping to make these services mainstream, with prepaid technology leading the way.
“Prepaid continues to be the critical platform for innovation for many significant improvements in payments convenience, value and inclusivity for consumers, SMBs and governments,” said CPPO Executive Director Jennifer Tramontana.
“The research has confirmed the trends we have seen unfold over the past three years — the desire for digital payment options that are fast, flexible, affordable and accessible. Prepaid as a technology platform powers these types of financial experiences.”
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