Canadian Credit Card Industry Outlook - Top Canadian Financial Institutions are Strong Players in BNPL


Dublin, May 05, 2022 (GLOBE NEWSWIRE) -- The "Canadian Credit Card Market Outlook" report has been added to's offering.

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 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 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.

Key Topics Covered:

Chapter 1: Executive Summary

  • Retail Category Patterns
  • Canadian Banking is Highly Concentrated
  • Pandemic Devastated Industries Central to Credit Cards: Airlines and Hotels
  • Paydown in Credit Card Debt a Sharp Reversal Over Historic Trends
  • Payment Transactions
  • Debit Cards and Interac E-Transfers
  • Digital Payments
  • Contactless Payments
  • Canadian Consumers Use of Credit Cards

Chapter 2: Overview of Canadian Payments

  • Growth Forecast for Canadian Payments to 2025
  • Canadian Payment Ecosystem
  • In Wake of Pandemic, Consumer Financial Behaviors Are Changed
  • Canadian Banking
  • The Big Five
  • Caisse Populaire and the Desjardins Group
  • The Pandemic and Consumer Spending
  • Retail Category Patterns
  • Pandemic Created Waves of Lockdowns
  • Pandemic Devastated Industries Central to Credit Cards: Airlines and Hotels
  • Airline Industry is Still Recovering
  • Hotel Industry Hard Hit in Pandemic
  • Payments in the Pandemic
  • Cardholders With the Highest Interest Rates Were the First to Pay Off
  • Paydown in Credit Card Debt a Sharp Reversal Over Historic Trends
  • Natural Disaster and the Pandemic Affected Huge Swaths of Canada's Citizens
  • Canadians and Payment Products
  • Payment Transactions
  • Electronic Funds Transfer (EFT)
  • Online Transfers
  • Interac E-Transfers Dominate Canadian P2P Market
  • Pandemic Drove Retail Sales to E-Commerce
  • Debit Cards
  • Prepaid Cards
  • Contactless Payments

Chapter 3: Consumer Attitudes and Behavior

  • 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

Chapter 4: Canadian Credit Card Issuers

  • Canadian Tire
  • Triangle Rewards Program
  • CIBC
  • Costco Partnership Grows CIBC's Credit Card Portfolio by 30%
  • Capital One Exits Canadian Retailer Cobranded Market
  • The New CIBC
  • Costco Mastercard
  • CIBC Wins for Costco Rewards
  • Royal Bank of Canada
  • Overview
  • RBC's Summer Promotional Campaign Drive Card Value and Points Utility
  • Petro-Canada Promotion
  • Scotiabank
  • TD Bank
  • Air Canada Partnership

Chapter 5: Retailer Credit Cards

  • Costco
    • Marketing Strategy
    • The New CIBC Costco Mastercard
    • Features of New CIBC Costco Mastercard
  • The Hudson's Bay Company
    • New HBC Mastercard Partner, Neo Financial
    • Neo Financial: Eager for HBC Partnership
    • Some HBC Customer Skepticism About Card Switch
    • Why a Selfie?
  • Air Canada
    • Airline Loyalty Programs
    • From Humble Beginnings to Millions of Members
    • Co-Branding and Air Canada
    • New Card Partnership With Chase
  • Amazon Canada
  • Interchange
  • Push to Lower Interchange Fees for Smaller Businesses
  • Online and In-App Card Payments Incur Interchange Fees Twice Those of In-Store
  • E-Commerce is Costing Canadian Businesses More Than In-Store Transactions
  • Big Retailers and Card Issuers
  • Walmart Vs. Visa -- Battle of the Titans
    • First Walmart, Then Amazon
    • Amazon Introduced Visa Surcharges and Threats to Relationship With Visa
    • Canada Poised to Be Next Arena in Amazon-Visa Fight
    • Amazon-Visa Truce Announced

Chapter 6: Canada's Buy-Now, Pay-Later Industry

  • Top Canadian Financial Institutions Are Strong Players in BNPL
  • Alternative to Debit and Credit Cards
  • Focus on BYPL Providers
  • Affirm: Paybright Acquisition and Beyond
  • American Express Pay It Plan It
  • CIBC's Pace It
  • Mastercard
  • MBNA Payment Plans
  • Scotia Selectpay
  • RBC Payplan
  • Sezzle: Over 3,000 Canadian Merchants
  • Visa Installment
  • Walmart Canada

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