Payment Cards in Canada by niusheng11


									Payment Cards in Canada
Payment Cards in Canada

Date: Jan, 2011
Pages: 103
Price: US$ 4,495.00
ID: P94581121DEEN


Payment Cards in Canada is an invaluable guide to one of world's largest payment card markets. The report
provides statistics on market size, competitor market shares and forecasts. It also provides an overview of
regulations, competitor activities, issuer strategy and product innovation including developments in
contactless, mobile, and online payments as well as prepaid cards.

Features and benefits

       • Detailed market sizing, competitor shares and forecasts are an invaluable guide for any cards player
         building a business case for activity in Canada.
       • In-depth insight into contactless, mobile, prepaid and online payments highlights future opportunities
         for all industry stakeholders.
       • Detailed analysis of Canada's regulatory framework assists potential market entrants in understanding
         current and possible future legislation.


Canada has a well developed payment cards market with the highest card penetration in the Americas at 3.7
cards per person. The payment cards sector in Canada remains heavily influenced by regulations which dictate
to what extent a bank can operate in the market.

The "big five" Canadian banks account for 61% of the credit cards market. However, Bank of America and
Capital One have grown to become major players with 15% of the market. Retailers such as Canadian Tire
and Walmart are increasing in importance with over 9% of the market while Credit Unions remain very
popular in some regions such as Quebec.

The greatest contactless opportunities lie in the petrol station market although coffee shops and fast food
restaurants have led the way so far. Prepaid cards are becoming more popular and issuers are marketing the
cards to specific consumer segments. Zoompass is Canada's sole mobile payments operator well developed in
mobile money transfer.

Your key questions answered

       • Which card segments are showing the fastest growth in the Canadian payments market and why?
       • Who are the key players in Canada and what is their market share?
       • How do Canadian regulatory authorities impact the payment cards sector?
       • How extensive are mobile and contactless payments and where does future growth lie?

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Payment Cards in Canada - Table of Content

Executive Summary
Sizing and forecasting the payment card market in Canada
Competitor and product developments in Canada
Online, contactless, prepaid, and mobile payments
Sizing and Forecasting the Payment Card Market in Canada
Key macroeconomic and consumer data
Macroeconomic trends and performance
Demographic and consumer trends
Regulation of the Canadian payment cards sector
Key institutions and players
Banks operating in Canada fall into three categories, known as schedules
Recent and future legislation aims to increase both transparency and competition, while also decreasing fees
Acquiring and processing landscape
The Interac network monopoly has made the Canadian debit card market unique
Moneris Solutions is the largest acquirer in Canada, although other players are developing similar
Sizing the payment card market in Canada
Size and performance of the payment card market
Forecasting the payment card market in Canada
Forecasting the pay now card market
Forecasting the revolving credit card market
Forecasting the charge card market
Competitor and Product developments in Canada
The competitive landscape
Categorization of players in the Canadian payment cards market
Competition levels vary between products, with Schedule III banks unable to issue debit cards
Credit Unions are major competitors in Quebec, Saskatchewan and the greater Vancouver area
Retailer cards are seeing a surge in popularity and are increasing competition with traditional issuers
The Big Five Canadian banks dominate the payment cards landscape
The "Big Five" banks
Other significant Canadian players
International banks with a significant presence in Canada
Card issuer market shares and performance
Credit card market shares
Pay now card market shares
Charge card market shares
Leading loyalty programmes
Credit card product strategy
Frequency of use by brand
BMO is the only Big Five issuer not offering a low interest card
Card scheme market shares and developments
Pay now card scheme shares
Charge card scheme shares
Online, Contactless, Prepaid, and Mobile Payments

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Online payments in Canada
E-payment methods
Interac e-Transfer transfers money securely but is limited to participating financial institutions
The introduction of Interac Online allows online payments by debit card but only 7.4% choose this method
Comfort and security drive consumer payment tool use
Canada is the second largest market in terms of potential opportunity in the Americas, worth $22.7bn
The petrol market offers the biggest opportunity for contactless payment methods, but has witnessed few
Convenience stores also offer numerous opportunities, but no large retailers have yet embraced contactless
Coffee shops and fast food chains have lead the way in contactless payments in Canada
Monoline issuers such as MYPLASH are investing heavily in the youth and travel markets
Only two of the "Big Five" Canadian banks offer prepaid cards and both target different consumers
SelectCore launched Canada's first reloadable prepaid card sold at retail
RBC and Consorteum Holdings Inc have both launched prepaid card schemes aimed at different segments of
those on benefits
Developments in mobile payments
Zoompass has developed rapidly, with domestic and international P2P mobile money transfers
Zoompass Tag has undergone trials with the aim of introducing it to mobile devices in 2011


Cards and payments database
Financial Services Consumer Insight is new to our offering, providing new and valuable insight
Forecasting methodology
Further reading
Ask the analyst
Datamonitor consulting


Figure 1: Canada is the second largest economy in the Americas
Figure 2: Recessionary forces led to a contraction of real GDP
Figure 3: Inflation, as measured by consumer price index, plummeted to 0.3% in 2009
Figure 4: Canadian unemployment stood at over 8% in 2009
Figure 5: CIBC Visa Advantage card is the first debit card which does not only use the Interac network
Figure 6: The Interac Association provides a network for debit card payments
Figure 7: Canada has the highest card penetration rate in the Americas
Figure 8: Canada has a higher penetration of pay later cards than pay now cards, 2009
Figure 9: Canada is second only to the US in terms of pay now card penetration, 2009
Figure 10: Canada leads in terms of pay later card penetration
Figure 11: The number of pay later cards in issue is higher than pay now cards, and is growing fast
Figure 12: Pay now cards accounted for the majority of transactions in Canada
Figure 13: Canadians prefer transacting at POS to ATM withdrawals
Figure 14: Food and drink accounts for the largest share of the pay later card market in Canada

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Figure 15: Pay now cards are the most frequently used card payment option in Canada
Figure 16: Frequency of use is higher at POS than at ATMs across all card types
Figure 17: Pay now and credit cards are almost equal in terms of total transaction values
Figure 18: Value of transaction at POS was over four times that at ATM
Figure 19: Food and drink accounted for the highest payment transaction value in Canada
Figure 20: Charge cards recorded the highest average transaction value in Canada
Figure 21: Average transaction values are higher at ATMs than at POS in Canada
Figure 22: Canada has the highest average pay now POS transaction value in the Americas
Figure 23: Canada has the highest turnover per pay now card in America
Figure 24: Average transaction value and frequency of use for pay later cards at POS is highly dispersed
Figure 25: Canada has the highest average POS turnover for pay later cards
Figure 26: Food and drinks account for the highest average pay later transaction value in Canada
Figure 27: 49% of all credit cards in Canada are used as primary cards by consumers
Figure 28: More than one-third of credit cards in Canada are used all the time
Figure 29: Canada has lower revolve rates and balances outstanding than the US
Figure 30: 58% of consumers in Canada pay off their balance in full each month
Figure 31: The number of ATM terminals in Canada grew at a CAGR of 4.8% over 2005-09
Figure 32: The number of POS terminals grew at a CAGR of 3.5% in Canada over 2005-09
Figure 33: The number of pay now cards in issue is expected to increase by 7.5% over 2010-14
Figure 34: The credit card market in Canada is expected to grow at a CAGR of 7.2% over 2010-14
Figure 35: The charge card market is expected to grow the fastest over 2010-14f
Figure 36: Bank of Montreal has the largest number of credit cards in issue in Canada, 2009
Figure 37: Bank of Montreal is the largest player in terms of the number of cards issued
Figure 38: TDS Canada occupies 16.1% of the charge cards market in Canada
Figure 39: 80% of National Bank cards were reported to be of standard branding
Figure 40: 67% of Scotiabank cards were used as primary cards
Figure 41: Scotiabank had the most used credit cards with 60% of consumers using them all the time
Figure 42: Interac has a monopoly in the pay now cards market in Canada
Figure 43: The total value of transactions through Interac grew by a CAGR of 5% over 2005-09
Figure 44: MasterCard branded cards dominate the credit card market in Canada
Figure 45: Visa accounts for more than half of the total credit card transaction values in Canada
Figure 46: American Express has the most charge cards in circulation in Canada
Figure 47: The total value of charge and deferred debit card transactions was highest for American Express
Figure 48: Over 80% of Canadians are Internet users
Figure 49: Only 9.2% of Canadian cardholders use e-payment methods
Figure 50: Only 7.4% of online shoppers use their debit cards for at least one type of purchase
Figure 51: 55.5% of PayPal users stated security as a reason for using the payment method
Figure 52: Contactless payments present a $22.7bn opportunity in Canada
Figure 53: Petrol stations offer the greatest potential in the contactless market at $7.7bn
Figure 54: MYPLASH uses popular culture to target the youth prepaid card market


Table 1: Canada - macroeconomic indicators
Table 2: Canada - demographics and consumer trends
Table 3: Datamonitor's forecast for the pay now card market, 2010-14f
Table 4: Datamonitor's forecast for the credit card market, 2010-14f
Table 5: Datamonitor's forecast for the charge card market, 2010-14f
Table 6: Credit card benefits by bank
Table 7: Credit card benefits by bank continued

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Table 8: Information on popular credit cards
Table 9: Current relevant publications

Payment Cards in Canada - Table of Content     5
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