The Canadian Prepaid Providers
Organization (CPPO), the leading voice of the prepaid industry in Canada,
hosted a one-day symposium in May to discuss the changing nature of the
Canadian prepaid market.
Like much of the world, prepaid is the fastest-growing
electronic payment tool in Canada. New research from Mercator Advisory Group,
which was previewed at the symposium, showed that prepaid card loads reached CAD$3.4B
in 2016. Canada offers consumer-, corporate- and government-funded prepaid
cards across 17 current market segments and the top segments are general-purpose
reloadable, open-loop prepaid and RAN gift cards.
The CPPO Prepaid Symposium included leaders from Canada and
around the globe discussing innovative prepaid technology, the future of
identity and KYC, prepaid’s role in Canadian citizens’ financial health and
budgeting activities, and how and why corporations should move to electronic
Five takeaways about
the Canadian prepaid market from the CPPO Prepaid Symposium:
payments drive prepaid growth in Canada. Unlike the U.S., prepaid has not
grown by meeting the needs of the underbanked in Canada. Current growth is
anchored in corporate payments. Prepaid products are helping businesses get
paid quicker, improving tracking and controls and becoming a more competitive replacement
solution for cheques and direct deposits in some situations.
products provide a great opportunity for businesses to distribute payroll
to employees and streamline operations by achieving a 100 percent electronic
payroll program. Compared to direct deposit, prepaid products give employees
flexible access to their wages with reduced settlement–all via an easy-to-use
mobile app that is especially attractive to younger employees. While 99 percent
of Canadians have bank accounts, some large banks have eliminated mobile
banking and consumers still have to wait until payday or beyond to actually
access their money. Prepaid products give businesses
a competitive recruiting advantage and are a common-sense tool for
on-demand labor or shift workers.
payment tools are on the rise. Payments industry experts are exploring the
financial habits of Canadians, how they budget, spend and save and why being “banked” does not equate to
financial health. Additionally, rising alternative payments tools - like
the Koho Visa Prepaid Card and mobile app -
offer transparency, budgeting, enhanced functionality and personalization that help
Canadians reach true financial health versus just being banked.
regulators are dealing with the modernization of the Canadian payments system
to encompass new digital tools, clearing and settlement times and identity and
KYC. There are also tax laws and prepaid regulations in progress
that will affect payments companies directly. With so much provincial and
federal regulation movement, Canada needs a strong voice for prepaid to ensure
that lawmakers understand the nuances of the industry.
providing a model to the world of fintechs and financial institutions working together to successfully
launch new and innovative financial tools. During the CPPO Prepaid Symposium
and the Payments Canada Summit that proceeded, attendees learned about the
active collaboration model that has successfully launched several Canadian prepaid
The 2017 CPPO Prepaid Symposium tapped the minds of top
payments and prepaid leaders in Canada to deliver a wealth of takeaways about
the great opportunity within the growing Canadian prepaid market. We look
forward to doing it again at the 2018 CPPO Prepaid Symposium in May 2018.