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Canadas Cards and Payments Industry: Emerging Opportunities, Trends, Size, Drivers, Strategies, Products and Competitive Landscape

Published By :

Timetric

Published Date : Nov 2013

Category :

Banking

No. of Pages : 103 Pages


Synopsis

The report provides market analysis, information and insights into Canada’s cards and payments industry, including:

  • Current and forecast values for each category of Canada’s cards and payments industry including debit cards, credit cards, prepaid cards and charge cards
  • Comprehensive analysis of the industry’s market attractiveness and future growth areas
  • Analysis of various market drivers and regulations governing Canada’s cards and payments industry
  • Detailed analysis of the marketing strategies adopted for selling debit, credit, charge and prepaid cards used by various bankers and other institutions in the market
  • Comprehensive analysis of consumer attitudes and their buying preferences for cards
  • Competitive landscape of Canada’s cards and payments industry

Executive summary

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.

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 buy

  • 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.

Key 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.
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
8.2.2 Analysis by transaction volume
8.3 Competitive Landscape
8.3.1 Scheme share analysis
8.3.2 Issuer share analysis

9 Analysis of Charge Card Payments and Growth Prospects
9.1 Overall Category Size and Forecast
9.1.1 Analysis by volume of cards in circulation
9.1.2 Analysis by transaction value
9.1.3 Analysis by transaction volume
9.2 Transaction Share Analysis by Channel
9.2.1 Analysis by transaction value
9.2.2 Analysis by transaction volume
9.3 Personal Charge Cards Sub-Category Size and Forecast
9.3.1 Analysis by number of cards in circulation
9.3.2 Analysis by transaction value
9.3.3 Analysis by transaction volume
9.4 Commercial Charge Cards Sub-Category Size and Forecast
9.4.1 Analysis by volume of cards in circulation
9.4.2 Analysis by transaction value
9.4.3 Analysis by transaction volume
9.5 Competitive Landscape

10 Analysis of Prepaid Card Payments and Growth Prospects
10.1 Overall Category Size and Forecast
10.1.1 Analysis by volume of cards in circulation
10.1.2 Analysis by transaction value
10.2 Open-Loop Prepaid Cards Segment Size and Forecast
10.2.1 Analysis by number of cards in circulation
10.2.2 Analysis by transaction value
10.3 Closed-Loop Prepaid Cards Segment Size and Forecast
10.3.1 Analysis by volume of cards in circulation
10.3.2 Analysis by transaction value

11 Merchant Acquiring
11.1 Merchant Acquirers

12 Company Profiles of Card Issuers
12.1 CIBC
12.1.1 Key financials
12.1.2 Card portfolio
12.1.3 Strategies
12.2 RBC
12.2.1 Key financials
12.2.2 Card portfolio
12.2.3 Strategies
12.3 BMO
12.3.1 Key financials
12.3.2 Card portfolio
12.3.3 Strategies
12.4 TD Canada Trust
12.4.1 Card portfolio
12.4.2 Strategies
12.5 Scotiabank
12.5.1 Key financials
12.5.2 Card portfolio
12.5.3 Strategies

13 Appendix
13.1 Methodology
13.2 Contact Timetric
13.3 About Timetric
13.4 Timetric’s Services
13.5 Definitions
13.6 Disclaimer

List of Table


Table 1: Canadian Payment Channels (CAD Billion), 2008–2012
Table 2: Market Entry Strategies of Foreign Banks
Table 3: Canadian Card Fraud (CAD Million), 2008–2012
Table 4: Canadian Cards For Travelers by Bank, 2013
Table 5: Canadian Cards for Retail Customers by Bank, 2013
Table 6: Canadian Corporate Cards by Bank, 2013
Table 7: Canadian Consumer Expenditure through Cards by Product Category (CAD Million), 2008–2012
Table 8: Canadian Consumer Expenditure through Cards by Retail Channel (CAD Million), 2008–2017
Table 9: Canadian Card Payments Channel by Card Category (Million), 2008–2017
Table 10: Canadian Card Payments Channel Size by Volume of Cards (Million), 2008–2017
Table 11: Canadian Card Payments Channel Size by Transaction Value (CAD Billion), 2008–2017
Table 12: Canadian Card Payments Channel Size by Transaction Value (US$ Billion), 2008–2017
Table 13: Canadian Credit Cards Category Size by Volume of Cards (Million), 2008–2017
Table 14: Canadian Credit Cards Category Size by Transaction Value (CAD Billion), 2008–2017
Table 15: Canadian Credit Cards Category Size by Transaction Value (US$ Billion), 2008–2017
Table 16: Canadian Credit Card Category Size by Transaction Volume (Billion), 2008–2017
Table 17: Canadian Personal Credit Cards Sub-Category Size by Volume (Million), 2008–2017
Table 18: Canadian Personal Credit Cards Sub-Category Size by Transaction Value (CAD Billion), 2008–2017
Table 19: Canadian Personal Credit Cards Sub-Category Size by Transaction Value (US$ Billion), 2008–2017
Table 20: Canadian Personal Credit Cards Sub-Category Size by Transaction Volume (Billion), 2008–2017
Table 21: Canadian Commercial Credit Cards Sub-Category Size by Volume (Million), 2008–2017
Table 22: Canadian Commercial Credit Cards Sub-Category Size by Transaction Value (CAD Billion), 2008–2017
Table 23: Canadian Commercial Credit Cards Sub-Category Size by Transaction Value (US$ Billion), 2008–2017
Table 24: Canadian Commercial Credit Cards Sub-Category Size by Transaction Volume (Million), 2008–2017
Table 25: Canadian Debit Cards Category Size by Volume (Million), 2008–2017
Table 26: Canadian Debit Cards Category Size by Transaction Value (CAD Billion), 2008–2017
Table 27: Canadian Debit Cards Category Size by Transaction Value (US$ Billion), 2008–2017
Table 28: Canadian Debit Cards Category Size by Transaction Volume (Million), 2008–2017
Table 29: Canadian Charge Cards Category Size by Volume (Million), 2008–2017
Table 30: Canadian Charge Cards Category Size by Transaction Value (CAD Billion), 2008–2017
Table 31: Canadian Charge Cards Category Size by Transaction Value (US$ Million), 2008–2017
Table 32: Canadian Charge Cards Category Size by Transaction Volume (Million), 2008–2017
Table 33: Canadian Personal Charge Cards Sub-Category Size by Volume (Million), 2008–2017
Table 34: Canadian Personal Charge Cards Sub-Category Size by Transaction Value (CAD Billion), 2008–2017
Table 35: Canadian Personal Charge Cards Sub-Category Size by Transaction Value (US$ Billion), 2008–2017
Table 36: Canadian Personal Charge Cards Sub-Category Size by Transaction Volume (Million), 2008–2017
Table 37: Canadian Commercial Charge Cards Sub-Category Size by Volume (Million), 2008–2017
Table 38: Canadian Commercial Charge Cards Sub-Category Size by Transaction Value (CAD Billion), 2008–2017
Table 39: Canadian Commercial Charge Cards Sub-Category Size by Transaction Value (US$ Million), 2008–2017
Table 40: Canadian Commercial Charge Cards Sub-Category Size by Transaction Volume (Million), 2008–2017
Table 41: Canadian Prepaid Cards Category Size by Volume (Million), 2008–2017
Table 42: Canadian Prepaid Cards Category Size by Transaction Value (CAD Billion), 2008–2017
Table 43: Canadian Prepaid Cards Category Size by Transaction Value (US$ Billion), 2008–2017
Table 44: Canadian Open-Loop Prepaid Cards Segment Size by Volume (Thousands), 2008–2017
Table 45: Canadian Open-Loop Prepaid Cards Segment Size by Transaction Value (CAD Million), 2008–2017
Table 46: Canadian Open-Loop Prepaid Cards Segment Size by Transaction Value (US$ Million), 2008–2017
Table 47: Canadian Closed-Loop Prepaid Cards Segment Size by Volume (Million), 2008–2017
Table 48: Canadian Closed-Loop Prepaid Cards Segment Size by Transaction Value (CAD Billion), 2008–2017
Table 49: Canadian Closed-Loop Prepaid Cards Segment Size by Transaction Value (US$ Billion), 2008–2017
Table 50: CIBC’s Key Financial Indicators (CAD Million), October 2011 and 2012
Table 51: CIBC – Card Product Offerings and Key Features
Table 52: RBC’s Key Financial Indicators (CAD Million), October 2011 and 2012
Table 53: RBC – Card Product Offerings and Key Features
Table 54: RBC – Co-Branded Cards
Table 55: BMO’s Key Financial Indicators (CAD Million), October 2011 and 2012
Table 56: BMO – Card Product Offerings and Key Features
Table 57: BMO – Cards Offered
Table 58: RBC – Card Product Offerings and Key Features
Table 59: Scotiabank’s Key Financial Indicators (CAD Million), October 2011 and 2012
Table 60: Scotiabank – Card Product Offerings and Key Features
Table 61: Key Definitions

List of Chart


Figure 1: Benchmarking the Canadian Card Payments Channel Against Other Regional Markets, 2012
Figure 2: Canadian Card Category Share by Volume of Cards in Circulation (%), 2012 and 2017
Figure 3: Canadian Card Transactions at ATM and POS Terminals (%), 2012 and 2017
Figure 4: Canadian ATM Penetration Per 100,000 Inhabitants, 2008–2017
Figure 5: Canadian POS Terminal Penetration Per 100,000 Inhabitants, 2008–2017
Figure 6: Canadian Internet Penetration (%), 2008–2012
Figure 7: Canadian M-Payments (Million), 2008–2017
Figure 8: Canadian Banking Landscape, Volume of Branches, September 2013
Figure 9: Canadian GDP Per Capita (US$), 2008–2017
Figure 10: Canadian Employment Rate (Percentage of Total Population), 2008–2017
Figure 11: Canadian Population Distribution by Age Group (%), 2008–2012
Figure 12: Canadian Payment Channels as a Percentage of the Industry (%), 2008 and 2012
Figure 13: Canadian Card Fraud by Type (%), 2008 and 2012
Figure 14: Canadian Card-not-Present Card Fraud by Value (CAD Million), 2008–2012
Figure 15: Canadian Counterfeit Card Fraud by Value (CAD Million), 2008–2012
Figure 16: Canadian Card Fraud by Cards Lost or Stolen (CAD Million), 2008–2012
Figure 17: Canadian Cards and Payments Industry Segmentation by Card Type, 2013
Figure 18: Canadian Population Segmentation (%), 2012
Figure 19: Canadian Volume of Outbound Departures (Million), 2008–2012
Figure 20: Canadian Outbound Tourist Expenditure (CAD Billion), 2008–2017
Figure 21: Canadian Retail Consumer Card Expenditure by Product Category (%), 2012
Figure 22: Canadian Retail Consumer Card Expenditure by Retail Channel (%), 2012
Figure 23: Canadian Card Payments Channel by Card Category (%), 2008–2017
Figure 24: Canadian Card Payments Channel Size by Volume of Cards (Million), 2008–2017
Figure 25: Canadian Card Payments Channel Size by Transaction Value (CAD Billion), 2008–2017
Figure 26: Canadian Credit Card Volume and Penetration (Million), 2008–2017
Figure 27: Canadian Credit Cards Category Size by Volume of Cards (Million), 2008–2017
Figure 28: Canadian Credit Cards Category Size by Transaction Value (CAD Billion), 2008–2017
Figure 29: Canadian Card Category Size by Transaction Volume (Billion), 2008–2017
Figure 30: Canadian Credit Card Transactions Value by Channel (CAD Billion), 2008–2017
Figure 31: Canadian Credit Card Transaction Volume by Channel (Million), 2008–2017
Figure 32: Canadian Personal Credit Cards Sub-Category Size by Volume (Million), 2008–2017
Figure 33: Canadian Personal Credit Cards Sub-Category Size by Transaction Value (CAD Billion), 2008–2017
Figure 34: Canadian Personal Credit Cards Sub-Category Size by Transaction Volume (Billion), 2008–2017
Figure 35: Canadian Commercial Credit Cards Sub-Category Size by Volume (Million), 2008–2017
Figure 36: Canadian Commercial Credit Cards Sub-Category Size by Transaction Value (CAD Billion), 2008–2017
Figure 37: Canadian Commercial Credit Cards Sub-Category Size by Transaction Volume (Million), 2008–2017
Figure 38: Canadian Credit Cards Category Share, by Scheme (%), 2012
Figure 39: Canadian Credit Cards Category Share, by Bank (%), 2012
Figure 40: Canadian Debit Cards Volume and Penetration (Million), 2008–2017
Figure 41: Canadian Debit Card Category Size by Volume (Million), 2008–2017
Figure 42: Canadian Debit Cards Category Size by Transaction Value (CAD Billion), 2008–2017
Figure 43: Canadian Debit Cards Category Size by Transaction Volume (Million), 2008–2017
Figure 44: Canadian Debit Cards Category Transaction Value Share Analysis by Channel (CAD Billion), 2008–2017
Figure 45: Canadian Debit Card Transaction Volume Share Analysis by Channel (Million), 2008–2017
Figure 46: Canadian Debit Cards Category Share by Scheme (%), 2012
Figure 47: Canadian Debit Cards Category Share by Bank (%), 2012
Figure 48: Canadian Charge Cards Volume and Penetration, 2008–2017
Figure 49: Canadian Charge Card Category Size by Volume (Million), 2008–2017
Figure 50: Canadian Charge Cards Category Size by Transaction Value (CAD Billion), 2008–2017
Figure 51: Canadian Charge Cards Category Size by Transaction Volume (Million), 2008–2017
Figure 52: Canadian Charge Card Transactions Value Share Analysis by Channel (CAD Million), 2008–2017
Figure 53: Canadian Charge Card Transaction Volume Share Analysis by Channel (Million), 2008–2017
Figure 54: Canadian Personal Charge Cards Sub-Category Size by Volume (Million), 2008–2017
Figure 55: Canadian Personal Charge Cards Sub-Category Size by Transaction Value (CAD Billion), 2008–2017
Figure 56: Canadian Personal Charge Cards Sub-Category Size by Transaction Volume (Million), 2008–2017
Figure 57: Canadian Commercial Charge Cards Sub-Category Size by Volume (Million), 2008–2017
Figure 58: Canadian Commercial Charge Cards Sub-Category Size by Transaction Value (CAD Billion), 2008–2017
Figure 59: Canadian Commercial Charge Cards Sub-Category Size by Transaction Volume (Million), 2008–2017
Figure 60: Canadian Charge Cards Category Share by Scheme (%), 2012
Figure 61: Canadian Prepaid Cards Volume and Penetration, 2008–2017
Figure 62: Canadian Prepaid Cards Category Size by Volume (Million), 2008–2017
Figure 63: Canadian Prepaid Cards Category Size by Transaction Value (CAD Billion), 2008–2017
Figure 64: Canadian Open-Loop Prepaid Cards Segment Size by Volume (Thousands), 2008–2017
Figure 65: Canadian Open-Loop Prepaid Cards Segment Size by Transaction Value (CAD Million), 2008–2017
Figure 66: Canadian Closed-Loop Prepaid Cards Segment Size by Volume (Million), 2008–2017
Figure 67: Canadian Closed-Loop Prepaid Cards Segment Size by Transaction Value (CAD Billion), 2008–2017
Figure 68: Canadian Key Acquirers Share of Card Payment Transactions (%), 2012

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