Prepaid cards are a versatile and convenient way to make purchases. Consumers can use them like gift cards, giving recipients the freedom to choose what they want to buy. They can reload them with funds, making them ideal for recurring expenses. And some prepaid cards can even be used for transit, providing an easy way to pay for fares.
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Data for today’s episode is provided by Mercator Advisory Group’s Report: Canadian Prepaid Market: Rapid Growth and Developing Opportunities5
Prepaid Cards by Type Purchased by Consumers in Canada
- 46% of Canadians use retailer-specific prepaid cards
- 44% of Canadians use general purpose gift cards
- 29% of Cnadians use gift cards for online services
- 28% of Canadians use general purpose reloadable prepaid cards
- 25% of Canadians use transit prepaid cards
Mercator Advisory Group’s most recent report, Canadian Prepaid Market: Rapid Growth and Developing Opportunities, pulls from both primary and secondary data to develop an overview of the Canadian market. While relatively small, the market is growing rapidly and presents significant opportunities for prepaid issuers.
The report examines the driving forces behind the industry’s remarkable growth and identifies recent market developments. After identifying some of the most compelling opportunities for involvement with the prepaid industry in Canada, the report concludes with recommendations for the reader.