The prepaid market is one of the fastest and most innovative growing payment segments in Canada (see source). According to a study commissioned by the CPPO, as of the end of 2019 open-loop cards such as prepaid Visa or Mastercard have achieved 3 consecutive years of 25% growth to the previous year. This amounts to Canadians loading a staggering $4.8 billion dollars onto these prepaid cards. According to Theodore Iacobuzio, vice president of research and director of the Prepaid Advisory Service at Mercator Advisory Group, we can expect to see continued evolution as prepaid cards in Canada are only in the early stages of their life cycle.
But did you know the prepaid industry is made up of more than just prepaid cards? It has grown and evolved to meet the unique needs of the Canadian marketplace. As a prepaid product and service provider we have expanded our prepaid product portfolio to provide our merchants with a wide variety of payment solutions to meet their consumers’ needs:
In-Person Payments: Using a QR or Barcode, customers can make a payment or add money to their mobile wallet or account such as Amazon Cash, Paytm, HPIBet, and paysafe:cash. These are great solutions for people who want to make purchases online but do not have access to a credit card.
Online Payment Products: Provide those consumers who prefer not to use their own credit card with an alternate method to purchase products or services online. Payment Vouchers can be redeemed at online retailers that accept the voucher as a method of payment.
General Purpose Reloadable Cards (GPR): GPR cards are used just like a traditional credit card, where the card is registered to the user. Purchases are completed once funds have been loaded on the card and it can be reloaded for future use. These cards are a great product for the security conscious consumer to use online reducing the risk of fraud and greater loss than traditional credit cards.
Gift Cards: These are prepaid cards that contain a specific amount of money available for use at specific retailers, online or in-person. Recently we introduced “Happy Card” gift cards which offer more flexibility and are prefixed with a denomination for multiple retailers. Gift cards are a popular choice for gift giving, with 87 percent of Canadians both purchasing and receiving gift cards each year (see source).
With the continuous growth of the prepaid market, c-store owners and operators should ensure they have a diverse product mix to help grow their business. For more information on our prepaid product portfolio and how you can join our 15,000 merchant network, contact us today.