​ Prepaid has emerged as the modern payments technology platform flourishing in Canada, driving consumer-friendly competition and providing the gateway for exciting new ways to bank, transact, get paid and grow inclusive access to financial services.

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Open-loop prepaid products are a valuable financial tool offering benefits to consumers, businesses and governments. Prepaid has grown to become a valuable part of Canada’s financial services ecosystem. The prepaid industry is a CA$12 billion market comprising an extensive value chain. This includes networks, regulated banks and financial institutions, challenger banks and program managers.

Prepaid issuers are investing more in prepaid as it supports the growing challenger bank sector and the transformation to digital B2B payments for enterprise and SMEs. Even governments have increased their adoption of prepaid as a tool to quickly deliver stimulus and emergency payments with ease and greater efficiency.

Prepaid is ensuring access to the digital economy, bringing down the cost of banking and payments and promoting financial health and equitable access for all Canadians.

Prepaid solutions:

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• Have been instrumental in displacing cheques, leading to economic benefits for governments and businesses.

• Are used to drive financial inclusion, providing an initial point of access to financial systems to those who are currently underserved by traditional products.

• Are being used as a foundation for digital financial services enabling fintechs and traditional FIs to push the boundaries of what a “card” can do.

• Enable firms to bring new and innovative solutions to market and allowing fintech partnerships to quickly launch and scale.

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"As consumers move toward a more convenient, cashless, contactless payment method, prepaid is really providing both those incumbent banking organizations, as well as those new fintech entrants, a way to introduce new products and services — while still adhering to our stringent regulatory requirements here in Canada.”

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- Jennifer Tramontana, CPPO Executive Director

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How prepaid works

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Open-loop prepaid products are tied to a payment network and provide consumers, businesses and government with an efficient, secure and flexible online payment option that does not have to be tied to a bank account. Prepaid products are also less expensive to administer and more secure than cheques. ​

Because prepaid funds can easily be added or transferred to an open-loop prepaid card, prepaid is also increasingly being used as a platform to boost financial health. For instance, fast access to funds helps consumers get away from payday lenders and can ease the financial burdens associated with a high credit debt load.

Open-loop prepaid products are a valuable financial tool offering benefits to consumers, businesses and governments. Prepaid has grown to become a valuable part of Canada’s financial services ecosystem.

Prepaid bridges the gap for non-financial businesses looking to support their employees and customers through new, innovative digital payment and payout methods — including real-time access to pay via digital apps.

Prepaid’s capacity to boost financial inclusion among gig workers – and its ability to embed payments that disappear into the background of a solution being offered to a consumer – has attracted everyone from tech giants and big retailers to first-time e-commerce players.​​​​