Abstract
Prospects for the Chip Card Market in Canada: 2007 is the most comprehensive and authoritative strategic market analysis and forecast available on the Canadian smart card market. Based on interviews with more than 85 key executives in the industry as well as extensive secondary research, the report provides subscribers with the essential information that they need to succeed in this rapidly developing market. The Canadian smart card market is unique, both in the way in which the market is developing, and in how the supply structure is adapting to meet expected surge in demand for smart cards, terminals and related systems. This report positions the Canadian market in the context of global smart card market developments, examines important technology trends influencing the Canadian market, and provides subscribers with an in-depth assessment of the opportunities for smart cards in Canada in different applications sectors, together with insightful analysis of the challenges facing the deployment of smart card systems in these areas. Published by Technology Surveys International Inc. (TSI), this detailed 209 page report is a complete update of the 2000 edition of the study.
Why buy this report:
Subscribers will have access to essential information needed to tailor their strategies to the needs of the rapidly changing Canadian market. They will gain insight into market needs, market prospects, important trends, key drivers and critical issues affecting market development. The report includes an in-depth assessment of which smart card applications are most likely to succeed, how the market will evolve and which segments to target or invest in. Subscribers will be in a unique position to avoid costly and misguided marketing initiatives based on hype and conjecture. Subscribers will be able to make well-founded, research-based, strategic decisions about how best to steer their business in the highly dynamic Canadian smart card market.
Companies wishing to succeed in the Canadian market need to understand the key growth drivers and opportunities in the market, as well as some of the dramatic changes taking place in order to position themselves for success. Companies that purchase this report will be able to identify the most realistic opportunities in the Canadian market and avoid costly marketing programs associated with targeting clients that are unlikely to adopt smart cards over the next five years Card issuers, acquirers and merchants will be in a unique position to understand the opportunities for convergence that are unfurling in the Canadian market, and how to address the considerable challenges associated with implementing smart card programs in their application sectors.
Who should buy this report?
Senior executives planning their business development strategies in the Canadian smart card market, including:- Suppliers of contact and contactless smart cards, point-of-sale terminals and card acceptance devices, ABMs and automatic fuel dispensers, NFC devices, transit solutions and high-security solutions
- Professional services and consulting firms hoping to leverage their international experience base in smart card systems through providing services to the lucrative Canadian market, a market that is suffering from a severe skills shortage for the implementation of smart card systems
- Card issuers, transaction acquirers, merchants and white-label ATM owners
Market summary
- The Canadian market is on the eve of dramatic expansion, with the number of cards in circulation forecast to grow at a rate of more than 50% per year for the next five years.
- By 2011, more than 110 million smart cards will be in circulation in Canada.
- The surge in demand for smart cards is being led by Canada' s EMV migration program, implementation of automatic fare collection systems by a number of transit authorities, and the use of smart cards for secure electronic travel documents (e-passports)
- The number of payment cards in Canada will exceed 132 million units by 2011 (including smart cards and magstripe cards)
- GSM SIM cards and smart cards used for conditional access for satellite television will remain important market segments
- Demand for terminals and card acceptance devices will accompany the proliferation of cards in Canada, as large scale card issuance programs are rolled out
- Wireless payments is an important growth area that may overtake the planned rollout of EMV contact smart cards
- There are a number of important opportunities for convergence with EMV-based payment applications emerging on the Canadian market
- Suppliers are gearing up for the surge in Canadian smart card demand with new entrants emerging at all levels in the value chain
Application sectors covered in this report:
- Financial (debit, credit and stored value)
- Loyalty, gift cards and closed payments
- Mobile communications
- Satellite TV
- Transit
- Campus
- Government
- Other
Technologies:
- Contact and contactless microprocessor and memory cards
- SIM cards, including high capacity SIM cards
- EMV-compliant cards
- EMV standards and processes
- Card materials
- New magstripe card technologies
- NFC (Near Field Communications)
- Converged appliances
- Biometrics
- Card Acceptance Devices and terminals (including ATMs, point-of-sale terminals and automatic fuel dispensers)
Research Methodology
The report is based on interviews with more than 85 key-decision-makers and experts from Canada and globally, supported by extensive desk research, TSI' s own internal databases on the Canadian and global smart card markets, and TSI' s expert analyst insight.
Number of Interviews by Sector
- Sector: Financial Services(20)
- Sector:Retail(15)
- Sector:Telecommunications and Broadcast (5)
- Sector:Transit(5)
- Sector:Colleges and Universities(6)
- Sector:Government(5)
- Sector:Suppliers(10)
- Sector:Associations, Consultants and Industry Experts(7)
- Sector:International Experts(6)
- Sector:Other(8)
Table of Contents
EXECUTIVE SUMMARY
INTRODUCTION
- Objectives of the Study
- Frame of Reference
- Research Methodology
- A Note on Forecasts
- Currency
- Structure of the Report
- Acknowledgements
THE WORLD CHIP CARD MARKET
- The Global Plastic Card Market
- Plastic Card Market Forecast
- Prospects for the Global Chip Card Market
- Application Segments
- Telecommunications
- Financial services
- Other Application Segments
- Regional Demand for Chip Cards
- Forecast Demand for Chip Cards
- The Canadian Chip Card Market in a Global Context
TECHNOLOGY TRENDS
- Introduction
- Developments in Chip Card Technology
- Magstripe Technology
- Memory Technology
- Microprocessor Cards
- High Capacity SIM Cards
- Active Cards and Supersmart Cards
- Contactless Cards
- Near Field Communications (NFC)
- RFID
- Card Materials
- Developments in Terminals and Card Readers
- Point of Sale Terminals
- Automated Banking Machines (ABMs)
- Converged Appliances
- Biometrics
- Standards
PROSPECTS FOR CHIP CARDS IN OPEN PAYMENT SYSTEMS
- Introduction
- Payments in Canada
- Cash Payments
- Debit Card Payments
- Credit Card Payments
- Cheques
- Online Payments
- Canadian Payments in Perspective
- The History of Chip Cards in Open Payment Systems in Canada
- Stored-value Cards
- The Mondex Guelph Pilot
- The Exact Pilot in Kingston
- The VisaCash Barrie Pilot
- The Mondex Coup
- Mid-Course Correction
- The Mondex Sherbrooke Pilot
- Dexit
- IMVCCP
- CCMP
- EMV Migration
- EMV Overview
- CCD and CPA
- Processes in a Typical EMV Transaction
- SDA, DDA and CDA
- Cardholder Verification
- The Case for EMV Migration in Canada
- Fraud as a Key Driver
- Credit Card Fraud
- Debit Card Fraud
- Securing and Modernizing the Payments System
- Keeping up with International Developments
- Multi-application Cards and Future Functionality
- EMV Migration Challenges
- Issuers
- Acquirers
- Merchants
- Merchants Views on EMV Migration
- Terminal Infrastructure
- POS
- ABMs
- Fuel Pumps
- The Impact on Consumers
- Implementing EMV in Canada
- Timelines for EMV Migration
- The Kitchener-Waterloo Trial
- Assessing the Investment Required
- Migration Window
- Wireless payments
- Market Forecast
PROSPECTS FOR CHIP CARDS IN OTHER APPLICATION SECTORS
- Introduction
- Mobile Communications
- Market Overview
- Market Prospects
- Satellite Television
- Market Overview
- Market Prospects
- Loyalty, Gift Cards and Closed Payments
- Introduction
- Gift Cards
- Loyalty
- Closed Payments
- Market Prospects
- Transit
- Market Overview
- Market Prospects
- Campus Applications
- Market Overview
- Market Prospects
- Government
- Health
- Driverün Driver' s Licenses
- Government ID
- Market Prospects
- Other Applications
- Market Forecast
THE SUPPLY STRUCTURE IN CANADA
- Introduction
- The Payment Systems Value Chain
List of Figures
- Global Plastic Card Shipments
- Global Plastic Card Revenues
- Forecast Global Plastic Card Shipments
- Regional Card production Forecast
- Global Plastic Card Shipment Forecast (by Card Type)
- Global Plastic Card Revenue Forecast (by Card Type)
- Global Chip Card Shipments
- Global Chip Card Shipments by Technology
- Global Chip Card Shipments by Application
- Chip Cards by Application Segment (2006)
- Historical Demand for Chip Cards by Application Segment (excluding Telecommunications)
- Growth in Demand for Chip Cards by Application Segment
- Chip Cards in Telecommunications Applications by Technology
- Regional Demand for Chip Cards
- Global Chip Card Shipment Forecast
- Forecast Number of Chip Cards in Circulation in Canada
- Forecast Annual Shipments of Chip Cards in Canada
- Mobile Phone Handset Configurations for Near Field Communications
- Canadian Retail Sales by Sector (2005)
- Average Annual Growth in Retail Sales by Sector (2001 - 2005)
- Canadian Banknotes and Coin in Circulation
- Number of ABMs in Canada by Type
- Volume and Value of Cash Withdrawals at ABMs in Canada
- Cash-based Retail Payment Transaction Volumes in Canada
- Annual Volume and Value of Interac Direct payment Transactions
- Debit Card Payment Transactions by Sector
- Share of Number of Transactions at Retail Outlets (1996 - 2005)
- Share of Transaction Values at Retail Outlets (1996 - 2005)
- Number of Visa and MasterCard Credit Cards Issued in Canada
- Net Retail Dollar Volume and Transaction Volumes (Visa & MasterCard)
- Relative Shares of Visa and MasterCard in Canada
- Number of Merchant Outlets Accepting Visa and MasterCard
- Volume and Value of Cheques Cleared through the ACSS in Canada
- Share of Personal Consumption Expenditure (PCE) by Payment Type in Canada
- Payment Transaction on PCE by Payment Instrument
- Consumer Preferences for Payment Method
- EMV Transaction Flow
- Credit Card Fraud in Canada
- Credit Card as a Percentage of Retail and Cash Advance Dollar Volumes
- Breakdown of Credit Card Fraud by Type (2005)
- Credit and Debit Card Fraud in Canada
- Forecast Number of Credit Cards in Circulation in Canada
- Forecast of Credit Cards Issued Annually in Canada by Type
- Forecast Number of Debit Cards in Circulation in Canada
- Forecast of Debit Cards Issued Annually in Canada by Type
- Forecast of EMV Cards Issued Annually in Canada
- Forecast of Installed Base of POS Terminal in Canada
- ABM EMV Migration Forecast in Canada
- The Mobile Phone Market in Canada
- Forecast Number of Mobile Phone Subscribers in Canada
- Forecast Number of SIM Cards in Circulation in Canada
- Television Subscribers in Canada by Type and Service
- Forecast Number of Bell ExpressVu Subscribers in Canada
- Forecast Number of Non-EMV Chip Cards in Circulation in Canada
- Forecast Annual Shipments of Non-EMV Chip Cards in Canada
- Interlinked Value Chains: Payments
List of Tables
- Number of Interviews by Sector
- Global Chip Card market Forecast, by Segment
- Forecast Number of Chip Cards in Circulation in Canada, by Application
- Forecast Annual Shipments of Chip Cards in Canada by Application
- Different Types of Biometrics
- Approaches to Multi-Biometrics
- Some Important Standards in Chip Cards and Related Areas
- Debit Card payments by Retail and Business Sector
- Primary Issuers of Visa and MasterCard in Canada
- Key Features of the Mondex Guelph Pilot
- Key Features of the Exact Kingston Pilot
- Key Features of the VisaCash Barrie Pilot
- Key Features of the Mondex Sherbrooke Pilot
- EMV 4.1 Structure (EMV 2000)
- EMV Compliance Assessment in Europe (mid-2006)
- Summary of Merchants' Perspectives on EMV Migration
- Key Features of Payment Organization EMV Migration Policies in Canada
- Interac' s EMV Migration Targets
- Visa' s Liability Shift
- Attributes that make Kitchener-Waterloo an Attractive Trial Location
- Number of Retail and Service Establishments by Sector
- Canadian EMV Investment Requirements
- Canadian Mobile Phone Operators
- Percentage of Large Retail Stores Offering Gift Cards, by Trade Group
- Selection of Smart Card Gift Certificate Initiatives in Canada
- Selection of Chip Card Loyalty Initiatives in Canada
- Transit Smart Card Projects in Canada
- Characteristics of the GTA Fare Card Scheme
- Forecast Number of Non-EMV Chip Cards in Circulation by Application
- Forecast Annual Shipments of Non-EMV Chip Cards in Canada by Application
