The Canadian card industry has unique features distinct from U.S. payments. This research report describes six industry-shaping trends that fit the market well and provide a strong foundation for the future.
The report draws from survey data in the Canadian edition of the North American Payments Insights, a powerful research asset, which recently expanded into Europe. Readers will also get a glimpse at the global payments database, which provides analytics for more than 100 countries.
Canada has a long history of innovation in payments with differences from the United States card market. Innovations include Interac, which was originally a domestic debit payment scheme that ran outside the traditional branded network payment scheme.
The non-profit model converted to a profit-making venture similar to the path Mastercard and Visa took in the early 2000s. The market also has a progressive Code of Conduct that better positions merchants in the payment scheme.
Non-traditional lenders and technology play an important role in Canada.
Highlights of the research report include:
Number of cards in circulation and number of active accounts in Canada
Canadian credit card transaction volume
Canadian consumers' credit preferences by age cohort
Requirements of the Code of Conduct for the Credit and Debit Card Industry in Canada
A discussion of the uneven success of U.S. card issuers in Canada
Canada's strategies for voluntary reduction of interchange
Ontario's push to increase minimum-due payments
Key Topics Covered
Payment Card Markets in Canada and the U.S.: The Same but Different
Debit and Credit Cards in Canada and the U.S.: Different Launchpoints, Different Worlds
Credit Card Transaction Volume
Consumer Usage Trends
Six Industry Trends Shaping the Future of Canadian Payments
Code of Conduct Protects Merchants
Non-Canadian Issuers Are Welcome, but Entrance Will Not Be Easy
Reducing Interchange, Gracefully
Ontario Takes a Stand to Reduce Card Debt. Will Other Provinces Follow?
Non-traditional Credit Card Issuers Bring Competition and Innovation
The Canadian Market Has Been Quick to Embrace Technology
Figures & Tables Figure 1: Active Mastercard and Visa accounts in Canada will approach 50 million by 2023 Figure 2: Credit card transactions in Canada will double or more than double between 2012 and 2023 Figure 3. With few exceptions, patterns of shoppers' payment type preferences in stores are similar in Canada and U.S. Table 1: An interpretation of the Code of Conduct for the Credit and Debit Card Industry in Canada