Canadian Credit Card Market Outlook
Description
Canadian Credit Card Market Outlook
The characteristics of the Canadian payments industry are determined by more than the competition among credit card and debit card issuers, the financial institutions and retailers, and consumer demographics. Payment trends also reflect consumer demands for transformative digital purchasing experiences and real-time payments, as well as the shifting pressures on card reward programs as consumers dialed down their in-store shopping and travel behaviors because of COVID-19.
Two years after the onset of the pandemic, total Canadian consumer spending has recovered to 2019 levels and the overall economy is on the road to full recovery, but the payments landscape remains altered with regard to where consumers spend their money, the channels used for spending money, and how consumers choose and interact with their payment products.
Canadian payment product and their rewards/loyalty program trends also track the Federal government’s efforts to both push down interchange fees to benefit merchants and retain current levels of rewards to appease consumers. The government’s push to move industry income in only one direction contravenes the historical pattern of card issuers collecting less in interchange and thereby lowering the value of rewards programs commensurately.
This all-new Packaged Facts report reviews and analyzes the Canadian credit card market within the context of the $9 trillion Canadian payments market, covering transaction volumes and transaction values across product types and usage channels. It also examines emerging credit products, payment strategies, and buy-now, pay-later (BNPL) offerings of the Big Five banks, as well as those from financial technology companies (fintechs) and the card networks. The report also provides analysis of the partnerships between the big Canadian banks and their credit card co-branding partners, including retailers and airlines.
Report Methodology
The information in Canadian Credit Card Market Outlook was obtained from primary and secondary research. Primary research included an extensive English/French proprietary Packaged Facts online consumer survey – fielded in February 2022 – that assessed Canadian consumers use of payment products by type, frequency of use, demographics as well as the psychographics drivers of consumer choices. The survey is census representative of the primary demographic measures of age, gender, geographic region, race/ethnicity, and household income. Within the report, additional consumer surveys from other market research firms and payment providers are referenced and cited.
Secondary research also includes general business and trade publications, management consulting reports, investment analyst reports, company financial filings, and vendor-generated survey findings. Research also relied on Canadian and international governmental, non-profit, and not-for-profit trade reports; country profiles; and payment system analysis.
Please note: Unless otherwise specified, all dollar figures are in Canadian dollars.
Two years after the onset of the pandemic, total Canadian consumer spending has recovered to 2019 levels and the overall economy is on the road to full recovery, but the payments landscape remains altered with regard to where consumers spend their money, the channels used for spending money, and how consumers choose and interact with their payment products.
Canadian payment product and their rewards/loyalty program trends also track the Federal government’s efforts to both push down interchange fees to benefit merchants and retain current levels of rewards to appease consumers. The government’s push to move industry income in only one direction contravenes the historical pattern of card issuers collecting less in interchange and thereby lowering the value of rewards programs commensurately.
This all-new Packaged Facts report reviews and analyzes the Canadian credit card market within the context of the $9 trillion Canadian payments market, covering transaction volumes and transaction values across product types and usage channels. It also examines emerging credit products, payment strategies, and buy-now, pay-later (BNPL) offerings of the Big Five banks, as well as those from financial technology companies (fintechs) and the card networks. The report also provides analysis of the partnerships between the big Canadian banks and their credit card co-branding partners, including retailers and airlines.
Report Methodology
The information in Canadian Credit Card Market Outlook was obtained from primary and secondary research. Primary research included an extensive English/French proprietary Packaged Facts online consumer survey – fielded in February 2022 – that assessed Canadian consumers use of payment products by type, frequency of use, demographics as well as the psychographics drivers of consumer choices. The survey is census representative of the primary demographic measures of age, gender, geographic region, race/ethnicity, and household income. Within the report, additional consumer surveys from other market research firms and payment providers are referenced and cited.
Secondary research also includes general business and trade publications, management consulting reports, investment analyst reports, company financial filings, and vendor-generated survey findings. Research also relied on Canadian and international governmental, non-profit, and not-for-profit trade reports; country profiles; and payment system analysis.
Please note: Unless otherwise specified, all dollar figures are in Canadian dollars.
Table of Contents
100 Pages
- Scope & Methodology
- Executive Summary
- Introduction
- Canadian Banking
- The Pandemic and Consumer Spending
- Payments in the Pandemic
- Canadians and Payment Products
- Pandemic Sparked Changes in Payment Product Preferences
- Canadian Consumers Use of Credit Cards
- Why Consumers Use Specific Credit Cards
- Value and Choice of Primary Card
- Consumers' Satisfaction with Primary Credit Card
- Canadians Feeling Positive About Their Own Finances and the Economy
- Consumers Respond Positively to Issuer Communications During the Pandemic
- Financially Vulnerable Cardholders Are Least Satisfied with Their Issuers
- Rewards Redemptions Were Down, But Rewards Satisfaction Was Up
- No Annual Fee Cardholders Are the Most Satisfied
- Call Centers Remains the Industry's Weakest Spot
- Debit Card Use
- What Consumers Value About Debit Cards
- Retail Rewards Drive Prepaid Card Use
- Online Purchasing
- Prepaid Cards
- Primary Research: Packaged Facts 2022 Survey of Canadian Consumer Payment Patterns
- Primary Research: Packaged Facts 2022 Survey of Canadian Consumer Payment Patterns
- Primary Research: Packaged Facts 2022 Survey of Canadian Consumer Payment Patterns
- Primary Research: Packaged Facts 2022 Survey of Canadian Consumer Payment Patterns - Psychographics
- Canadian Tire
- CIBC
- Royal Bank of Canada
- Scotiabank
- TD Bank
- Overview
- Costco
- The Hudson's Bay Company
- Air Canada
- Amazon Canada
- Top Canadian Financial Institutions Are Strong Players in BNPL
- Alternative to Debit and Credit Cards
- Focus on BYPL Providers
Pricing
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