Purchase dollar volume (PDV) in Canada for Visa and MasterCard has been plummeting over the past five quarters, however card issuance in the first quarter (1Q/16) for both networks remained in double-digits year-on-year (YOY).
The P&S Market Research’s “Canada Cards and Payments Market – Size, Share, Development, Growth and Forecast to 2020” report says in Canada, the credit card segment dominates the payment cards market in terms of number of cards in circulation.
The GDP per capita of Canada increased from CAD 52,775.2 in 2012 to CAD 55,641.5 in 2014. The GDP per capita is likely to increase further over the period 2015-2020, to reach CAD 65,509.6 in 2020. This growing GDP is expected to result in an increased cards usage over the forecast period.
Credit cards are being used by consumers to shop at retail outlets and make online payments. The credit card market is expected to grow over the forecast period at a CAGR of 1.6%.
MasterCard was the leading scheme in the Canadian credit card market in 2014. The credit cards in the country are primarily used at POS terminals for retail purchases, rather than for cash withdrawals at ATMs. The frequency of credit card use witnessed a CAGR of 1% during 2012-2014.
Whereas, the frequency of use of debit card increased from 194 in 2012 to 202 in 2014, at a CAGR of 2.1%. It is further expected to grow at a CAGR of 1.4% during the forecast period. In the debit card segment, RBC was the leading card issuer in terms of the number of cards in circulation, in 2014.
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