Consumer Finance in Canada
Euromonitor International's Consumer Finance in Canada report establishes the size and structure of the market for ATMs, credit cards, debit cards, store cards and smart cards. It looks at key players in the market (issuers and operators), number of cards in circulation, numbers transactions and value of transactions. It offers strategic analysis of sector forecasts and trends to watch.
Buy online to access strategic market analysis and an interactive statistical database of value and volume for retail and internet transactions, number of cards in circulation and company brand shares.
Tables: 151 | Publication date: Jan 2009
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Consumer lending; Financial cards and payments
Executive summary
Initial chip card trials a success
A chip card trial conducted in Canada has returned positive results. The trials were conducted in the Kitchener-Waterloo area in southern Ontario. Nearly one third of residents were issued with new chip cards to use at 2,300 POS terminals across the area. Around 65% of ATMs in Kitchener-Waterloo were converted to accept the chip format, and roughly 312,500 outstanding cards will be converted and reissued over the trial period. The trial was planned to run until October 2008, and if it continues to be successful, chip cards are expected to be fully integrated in Canada by 2010.
M-commerce on the horizon
Consumers may also soon be able to make purchases using their mobile phones. Tests are already underway for the arrival of this new technology. Visa and MasterCard, the main companies involved with developing this payment method, have taken different approaches to implementation. Visa has partnered with RBC, its second largest issuer in Canada, while MasterCard has aligned itself with Bell.
Both partnerships offer distinct advantages. RBC currently has the largest number of chip-to-chip transactions in Canada, at 25 million. Visa is testing the capabilities of m-commerce in the Kitchener-Waterloo area, and also among its own employees in the Greater Toronto Area. Bell, meanwhile, has its own infrastructure and mobile phone network, which provides MasterCard with an existing network through which to implement the technology.
Canadians are the leaders in on-line banking usage
Canada ranks first in the adoption of on-line banking. Of the 24 million Internet users in Canada, 67.1% were using on-line banking in April 2008. This percentage is much higher than other English-speaking countries, with the US having 44.4% on-line banking users, the UK 49.5%, and Australia 41.7%. Canada is also the leader in on-line banking frequency, with Canadians using on-line banking on an average of eight days and 10.5 times in April 2008. On-line banking and e-commerce remain significant opportunities for financial institutions in Canada.
Consumer spending remains strong
Despite the weak North American economy, consumers in Canada have been spending as usual thus far. Consumer expenditure rose at an estimated rate of 3.3% per annum in 2008. A strong Canadian dollar has also boosted consumer expenditure. Canadians now spend more on cheaper US goods, whilst to counteract the spending exodus to the US, domestic retailers are cutting their prices. The strong Canadian dollar has hurt exporters in certain industries, like manufacturing, but energy and commodity producers are still in a favourable position due to soaring energy and commodity prices.
Canadian banks battling DataTreasury Corp for cheque processing patent
DataTreasury Corp, a company based in Plano, Texas, holds the patent in Canada for an everyday back-office process that is worth billions of dollars. The process allows banks to process cheques electronically at a cost of pennies a day, whereas it would cost around C$2 to process manually. The Royal Bank of Canada, TD Bank and the Bank of Montreal launched a pre-emptive legal case against DataTreasury to attempt to avoid a costly settlement. They claim that the patent is too vague and are suing to have the patent ruled invalid.
DataTreasury has retaliated, claiming that the major six banks have wilfully committed patent infringement. The company is claiming damages for profits lost from cost savings related to processing billions of cheques. DataTreasury acquired the patent in January 2006.
Table of contents
CONSUMER FINANCE IN CANADA : MARKET INSIGHT
EXECUTIVE SUMMARY
Initial chip card trials a success
M-commerce on the horizon
Canadians are the leaders in on-line banking usage
Consumer spending remains strong
Canadian banks battling DataTreasury Corp for cheque processing patent
KEY TRENDS AND DEVELOPMENTS
Personal debt levels reach a record high
Chase Paymentech to dissolve by the end of 2008
Canadian banks are also looking across the border for bargains
Consumers are still not convinced about e-shopping security
Younger Canadians are bigger savers than their parents
Canadians love their rewards
Organised crime a growing concern
MARKET DATA
Table 1 Consumer Payments: Value 2003-2008
Table 2 Financial Cards: Number of Cards in Circulation 2003-2008
Table 3 Financial Cards Transactions: Value 2003-2008
Table 4 Financial Cards: Number of Transactions 2003-2008
Table 5 Financial Cards: Number of Accounts 2003-2008
Table 6 Financial Cards: Number of Cards by Issuer 2003-2007
Table 7 Financial Cards: Number of Cards by Operator 2003-2007
Table 8 Financial Cards: Card Payment Transaction Value by Operator 2003-2007
Table 9 Financial Cards: Card Payment Transactions by Acquirer 2003-2007
Table 10 Consumer Payments Forecast: Value 2008-2013
Table 11 Financial Cards Forecast: Number of Cards in Circulation 2008-2013
Table 12 Financial Cards Forecast: Value 2008-2013
Table 13 Financial Cards Forecast: Number of Transactions 2008-2013
Table 14 Financial Cards Forecast: Number of Accounts 2008-2013
MARKET INDICATORS
Table 15 Number of POS Terminals 2004-2008
Table 16 Number of ATMs 2004-2008
Table 17 Disposable Income 2003-2008
Table 18 Value Lost to Fraud 2003-2008
Table 19 Acquirer Fraud 2003-2008
Table 20 Card Expenditure by Location 2008
Table 21 Card Expenditure by Sector 2008
Table 22 Financial Cards in Circulation by Type: % Number of Cards 2004-2008
Table 23 Domestic versus Foreign Spend 2008
DEFINITIONS
Summary 1 Research Sources
CONSUMER LENDING IN CANADA
EXECUTIVE SUMMARY
Canadians now hold over C$850 billion in mortgage debt
Legislative changes protect retirement savings
Revisions to Bank Act make down-payments easier
Housing market looking to slow
Canadian Tire enters mortgage market
KEY TRENDS AND DEVELOPMENTS
The rise and fall of 40-year mortgages
Rising tuition with less return on investment leaves students in greater debt
More 60-year-olds still have mortgages to pay
Canadians are increasingly paying their bills on time
Bank of Canada is content with current interest rate
Car sales “defy gravity”
Canadian dollar returns to below parity
MARKET DATA
Table 24 Consumer Lending By Sector: Outstanding Balance: Value 2003-2008
Table 25 Consumer Lending By Sector: Outstanding Balance: % Value Growth 2003-2008
Table 26 Consumer Lending By Sector: Gross Lending: Value 2003-2008
Table 27 Consumer Lending By Sector: Gross Lending: % Value Growth 2003-2008
Table 28 Consumer Lending: Non-performing vs Other Loans 2003-2008
Table 29 Mortgages/Housing: Non-performing vs Other Loans 2003-2008
Table 30 Consumer Credit: Non-performing vs Other Loans 2003-2008
Table 31 Forecast Consumer Lending By Sector: Outstanding Balance: Value 2008-2013
Table 32 Forecast Consumer Lending By Sector: Outstanding Balance: % Value Growth 2008-2013
Table 33 Forecast Consumer Lending By Sector: Gross Lending: Value 2008-2013
Table 34 Forecast Consumer Lending By Sector: Gross Lending: % Value Growth 2008-2013
DEFINITIONS
Summary 2 Research Sources
LOCAL COMPANY PROFILES - CANADA
BANK OF MONTREAL FINANCIAL GROUP - FINANCIAL CARDS AND PAYMENTS - CANADA
STRATEGIC DIRECTION
KEY FACTS
Summary 3 Bank of Montreal: Key Facts
Summary 4 Bank of Montreal: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 5 Bank of Montreal: Competitive Position 2007
BANK OF NOVA SCOTIA, THE - FINANCIAL CARDS AND PAYMENTS - CANADA
STRATEGIC DIRECTION
KEY FACTS
Summary 6 The Bank of Nova Scotia: Key Facts
Summary 7 The Bank of Nova Scotia: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 8 The Bank of Nova Scotia: Competitive Position 2007
CANADIAN IMPERIAL BANK OF COMMERCE (CIBC) - FINANCIAL CARDS AND PAYMENTS - CANADA
STRATEGIC DIRECTION
KEY FACTS
Summary 9 Canadian Imperial Bank of Commerce: Key Facts
Summary 10 Canadian Imperial Bank of Commerce: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 11 Canadian Imperial Bank of Commerce: Competitive Position 2007
DESJARDINS GROUP - FINANCIAL CARDS AND PAYMENTS - CANADA
STRATEGIC DIRECTION
KEY FACTS
Summary 12 Desjardins Group: Key Facts
Summary 13 Desjardins Group: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 14 Desjardins Group: Competitive Position 2007
TD FINANCIAL GROUP - FINANCIAL CARDS AND PAYMENTS - CANADA
STRATEGIC DIRECTION
KEY FACTS
Summary 15 TD Financial Group: Key Facts
Summary 16 TD Financial Group: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 17 TD Financial Group: Competitive Position 2007
ATM TRANSACTIONS IN CANADA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 35 ATM Cards Sector Performance: 2003-2008
Table 36 ATM Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 37 ATM Cards Sector Performance: % Growth 2003-2008
Table 38 ATM Cards in Circulation Sector Performance: % Growth 2003-2008
Table 39 ATM Cards Forecast Sector Performance: 2008-2013
Table 40 ATM Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 41 ATM Cards Forecast Sector Performance: % Growth 2008-2013
Table 42 ATM Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
DEBIT TRANSACTIONS IN CANADA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 43 Debit Cards Sector Performance: 2003-2008
Table 44 Debit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 45 Debit Cards Sector Performance: % Growth 2003-2008
Table 46 Debit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 47 Debit Cards: Number of Cards by Issuer 2003-2007
Table 48 Debit Cards: Number of Cards by Operator 2003-2007
Table 49 Debit Cards Transactions by Acquirer 2003-2007
Table 50 Debit Cards Payment Transaction Value by Operator 2003-2007
Table 51 Debit Cards Forecast Sector Performance: 2008-2013
Table 52 Debit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 53 Debit Cards Forecast Sector Performance: % Growth 2008-2013
Table 54 Debit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
CREDIT CARD TRANSACTIONS IN CANADA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 55 Credit Cards Sector Performance: 2003-2008
Table 56 Credit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 57 Credit Cards Sector Performance: % Growth 2003-2008
Table 58 Credit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 59 Personal Credit Cards Sector Performance: 2003-2008
Table 60 Personal Credit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 61 Personal Credit Cards Sector Performance: % Growth 2003-2008
Table 62 Personal Credit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 63 Commercial Credit Cards Sector Performance: 2003-2008
Table 64 Commercial Credit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 65 Commercial Credit Cards Sector Performance: % Growth 2003-2008
Table 66 Commercial Credit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 67 Credit Cards: Number of Cards by Issuer 2003-2007
Table 68 Credit Cards: Number of Cards by Operator 2003-2007
Table 69 Credit Cards Transactions by Acquirer 2003-2007
Table 70 Credit Cards Payment Transaction Value by Operator 2003-2007
Table 71 Personal Credit Cards Payment Transaction Value by Operator 2003-2007
Table 72 Commercial Credit Cards Payment Transaction Value by Operator 2003-2007
Table 73 Credit Cards Forecast Sector Performance: 2008-2013
Table 74 Credit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 75 Credit Cards Forecast Sector Performance: % Growth 2008-2013
Table 76 Credit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 77 Personal Credit Cards Forecast Sector Performance: 2008-2013
Table 78 Personal Credit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 79 Personal Credit Cards Forecast Sector Performance: % Growth 2008-2013
Table 80 Personal Credit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 81 Commercial Credit Cards Forecast Sector Performance: 2008-2013
Table 82 Commercial Credit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 83 Commercial Credit Cards Forecast Sector Performance: % Growth 2008-2013
Table 84 Commercial Credit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
CHARGE CARD TRANSACTIONS IN CANADA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 85 Charge Cards Sector Performance: 2003-2008
Table 86 Charge Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 87 Charge Cards Sector Performance: % Growth 2003-2008
Table 88 Charge Cards in Circulation Sector Performance: % Growth 2003-2008
Table 89 Personal Charge Cards Sector Performance: 2003-2008
Table 90 Personal Charge Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 91 Personal Charge Cards Sector Performance: % Growth 2003-2008
Table 92 Personal Charge Cards in Circulation Sector Performance: % Growth 2003-2008
Table 93 Commercial Charge Cards Sector Performance: 2003-2008
Table 94 Commercial Charge Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 95 Commercial Charge Cards Sector Performance: % Growth 2003-2008
Table 96 Commercial Charge Cards in Circulation Sector Performance: % Growth 2003-2008
Table 97 Charge Cards: Number of Cards by Issuer 2003-2007
Table 98 Charge Cards: Number of Cards by Operator 2003-2007
Table 99 Charge Cards Transactions by Acquirer 2003-2007
Table 100 Charge Cards Payment Transaction Value by Operator 2003-2007
Table 101 Personal Charge Cards Transaction Value by Operator 2003-2007
Table 102 Commercial Charge Cards Payment Transaction Value by Operator 2003-2007
Table 103 Charge Cards Forecast Sector Performance: 2008-2013
Table 104 Charge Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 105 Charge Cards Forecast Sector Performance: % Growth 2008-2013
Table 106 Charge Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 107 Personal Charge Cards Forecast Sector Performance: 2008-2013
Table 108 Personal Charge Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 109 Personal Charge Cards Forecast Sector Performance: % Growth 2008-2013
Table 110 Personal Charge Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 111 Commercial Charge Cards Forecast Sector Performance: 2008-2013
Table 112 Commercial Charge Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 113 Commercial Charge Cards Forecast Sector Performance: % Growth 2008-2013
Table 114 Commercial Charge Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
GENERAL PURPOSE PRE-PAID CARD TRANSACTIONS IN CANADA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 115 General Purpose Pre-paid Cards Sector Performance: 2003-2008
Table 116 General Purpose Pre-paid Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 117 General Purpose Pre-paid Cards Sector Performance: % Growth 2003-2008
Table 118 General Purpose Pre-paid Cards in Circulation Sector Performance: % Growth 2003-2008
Table 119 General Purpose Pre-paid Cards by Type: % Number of Cards 2004-2008
Table 120 General Purpose Pre-paid Cards: Number of Cards by Operator 2003-2007
Table 121 General Purpose Pre-paid Cards Transaction Value by Operator 2003-2007
Table 122 General Purpose Pre-paid Cards Forecast Sector Performance: 2008-2013
Table 123 General Purpose Pre-paid Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 124 General Purpose Pre-paid Cards Forecast Sector Performance: % Growth 2008-2013
Table 125 General Purpose Pre-paid Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
STORE CARD TRANSACTIONS IN CANADA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 126 Store Cards Sector Performance: 2003-2008
Table 127 Store Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 128 Store Cards Sector Performance: % Growth 2003-2008
Table 129 Store Cards in Circulation Sector Performance: % Growth 2003-2008
Table 130 Store Cards: Number of Cards by Issuer 2003-2007
Table 131 Store Cards Forecast Sector Performance: 2008-2013
Table 132 Store Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 133 Store Cards Forecast Sector Performance: % Growth 2008-2013
Table 134 Store Cards in Circulation Forecast Sector Performance: % Growth 2008-2013