• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

Fintech.ca

 
 
  • News
  • Events
  • Interviews
  • Thought Leaders
  • Techtalent.ca
  • About

Canadians Shift Toward Digital Banking with Eye on Security and Value

June 29, 2023 by Knowlton Thomas Leave a Comment

Although awareness of tech-forward banking remains low in Canada, recent research conducted by the Canadian Prepaid Providers Organization suggests a consumer shift among younger Canadians toward digital payments and banking, exposing a growing digital divide across demographic lines.

The study examined the usage and satisfaction levels of traditional payment methods—such as credit, debit, prepaid, and cash—compared to emerging digital solutions like mobile payments and digital wallets.

It found that those under 55 are transitioning toward non-traditional, digital financial services at a faster rate than older Canadians.

“We are pleased to see the shift in consumer satisfaction toward a wide array of digital financial services and tools,” Jennifer Tramontana, Executive Director of the CPPO, stated.

This shift in consumer behaviour manifests a preference for a multi-banked approach, where Canadians use various payment and transaction methods for different aspects of their lives while also seeking non-traditional financial services that offer more mobile payment options.

“Prepaid is a driver of this trend, providing a secure, nimble platform to build and innovate financial services upon,” Tramontana says.

Canadians aged 54 and under use credit and cash less frequently, opting for digital wallets, prepaid options, and other digital payment methods, according to the report. In digital alternatives, Canadians prize choice, security, and value.

The prepaid industry is a $9 billion market in Canada, with an extensive value chain that includes networks, regulated banks and financial institutions, challenger banks and program managers. As prepaid issuers invest in prepaid solutions, they are supporting the government in delivering stimulus payments with more efficiency.

When Canadians use digital banking services they are typically satisfied.

As part of the modern payments technology platform in Canada, prepaid solutions have proven their value by displacing cheques, leading to economic benefits for governments and businesses, and serving as a foundation for digital financial services that allow fintechs and traditional institutions to push the boundaries of what a “card” can do.

“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,” noted Tramontana.

Open-loop prepaid products, which are tied to a payment network and provide a secure and flexible online payment option, are increasingly being used as a platform to boost financial health.

This is particularly true for gig workers who are seeking quick access to pay through digital apps to improve their financial well-being, CPPO’s report points out.

Filed Under: News Tagged With: Canadian Prepaid Providers Organization

 
 

About Knowlton Thomas

Knowlton Thomas is Editor-in-Chief of The Midway Advance and Senior Writer for Fintech.ca. Over more than a decade of journalism, he has penned thousands of articles and dozens of essays on technology, health, and culture across a variety of publications.

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

 
 

Email Newsletter

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Founding Sponsors

Recent Posts

  • TerraPay and Paramount Commerce Partner to Enable Real-Time Remittances to Canada
  • Alexi Launches Private Cloud AI Platform for Law Firms
  • Conquest Planning Raises $100M to Expand AI-Powered Financial Planning Platform
  • XRP Enters the National Mainstream as Canadian Firms Launch Crypto ETFs
  • Canadian Insurance Firms ‘Punch Above Weight’ in Global AI Adoption Index

Copyright © 2025 Incubate Ventures | Techtalent.ca · Techcouver.com · Calgary.tech · Decoder.ca · CleanEnergy.ca | Privacy