Abstract
Boston, MA --The proximity and cultural similarities between the United
States and Canada have made the Canadian market one of the first expansion
opportunities for that singular American creation: the credit card. After
developing a mature payment card market over the past half century, Canada is
witnessing a new influx of interest from payments industry players from
outside its borders.
These players are drawn by a variety of reasons including Canada's relatively
stable and well-regulated financial system, solid long-term economic
performance even through the recent global recession, low business bankruptcy
rates, and a populace relatively skilled at managing its debt. Others have
sought market entry because of the current phase of transition in technical
standards within the payments system.
Mercator Advisory Group's new report, ‘Payment Acquiring and Merchant
Services in Canada’, gives those seeking initial or expanded access
to the Canadian market a view into the current dynamics at play. It also
provides established operators with a summary of points on which they must
compete to maintain and grow market share within the broader payments space,
and specifically in the merchant services and payment acquiring sectors.
“Canada's migration to EMV is creating shifts in business activity
within the payments space, as a slew of vendors have rushed in from Europe and
other markets that have already moved to chip cards,” David Fish,
senior analyst at Mercator Advisory Group and author of the report comments.
“The nexus of EMV and e-commerce trends has another stable of providers
moving to expand their scope of services and customers -- fraud solutions
vendors. As EMV cards become more mainstream, fraudsters will be forced to
abandon card counterfeiting and turn increasingly to card-not-present fraud.
As e-commerce gateway providers and payment security vendors also pursue
global expansion, Canada and other markets migrating to EMV will be vitally
important.”
Highlights of this report include:
- Market sizing and landscape review for payments in Canada
- Examination of the merchant market, merchant payment method acceptance
preferences, and segments of opportunity
- Major acquirer market share and target industries
- Discussion of the merchant acquiring value chain in Canada and how various
entities engage with the market
- A review of the broad trends affecting the payments industry in Canada
One of 13 exhibits in this report:
This report is 24 pages long and has 13 exhibits.
Companies mentioned in this report include: American Express, Bank of
Montreal, Beanstream, Caledon Card Services, Canadian Imperial Bank of
Commerce, Canadian Payments Association, CardWorks, Chase Paymentech, China
Union Pay, Citibank, Collective POS, Collis, Costco, Desjardins, Diners Club,
Discover, Elavon, Emeris (TELUS), eWise, First Data, Gemalto, Giesecke &
Devrient, Global Payments, Heartland Payment Systems, Home Trust, HSBC,
Ingenico, Interac, JCB, MasterCard, Merrick Bank, Moneris, Monex, National
Bank of Canada, NXGEN, Optimal Payments, Payment Processing Inc. (PPI),
PayPal, Peoples Trust, Pivotal Payments, Precidia, PSiGate, Royal Bank of
Canada, Scotiabank, Squirrel, Toronto Dominion, VersaPay, and Visa.
About Mercator Advisory Group
Mercator Advisory Group is the leading, independent research and
advisory services firm exclusively focused on the payments and banking
industries. We deliver pragmatic and timely research and advice designed to
help our clients uncover the most lucrative opportunities to maximize revenue
growth and contain costs. Our clients range from the world's largest payment
issuers, acquirers, processors, merchants and associations to leading
technology providers and investors.
Table of Contents
Executive Summary
Introduction
The Canadian Payments Space
- Methods of Payment
- Top Payment Brands
- Shifting Trends and Expansion Opportunities
The Merchant Market Landscape in Canada
Merchant Acquirers in Canada
- Moneris
- Chase Paymentech
- TD Merchant Services
- Global Payments
- Dejardins
- Elavon
- First Data
- Other Providers
The Acquiring Value Chain in Canada
Conclusion - Strategic Concerns for Merchant Acquirers and Service Providers in Canada
- Duality - Not Much of an Issue for Acquirers
- Debit - Competing Interests
- The Code of Conduct - Transparency as a Differentiator?
- E-commerce, Mobile, and New Technology
- Endnotes
Table of Figures
- Figure 1: Payments Effected by Payment Instruments in Canada 2009
- Figure 2: Method of Payment Market Share 2010
- Figure 3: Major Card Payment Brands in Canada - Stat Snapshot
- Figure 4: Big Four Provinces Account for 84 Percent of Interac Card Usage
and 85 Percent of Cardholders
- Figure 5: Debit Volumes Increasing in E-commerce
- Figure 6: Retail, Hospitality, Travel Services, and Transit Comprise
Roughly Half of Canada's PCE
- Figure 7: Merchant Segment Population
- Figure 8: Mercator Survey: Canadian Small Business Method of Payment
Acceptance
- Figure 9: Merchant Acquirers in Canada - The Top Eight
- Figure 10: ISOs and Smaller Providers Starting to Play a Larger Role
- Figure 11: The Merchant Acquiring Value Chain and Canadian Examples
- Figure 12: Merchant Services Coalesce Around Three Main Roles - Sales,
Technology, and Service
- Figure 13: Selected Value Chain Participants in Canada and Their Various
Roles
