new research from CPPOThe nonprofit fueling the growth of the $14 billion open-loop prepaid economy shows canadians They are expanding the way they manage, move and grow their money by combining traditional and digital-first providers that better align with their lifestyles.
This shift reflects significant growth in Canada’s fintech sector. The Canadian fintech market is projected to reach $18.84 billion by 2033 as consumers seek more personalized, digital-first financial tools; This demonstrates the pace of innovation across payments, banking and embedded financial services. The research shows that growth is being driven by consumers who are more cost-conscious and more focused on day-to-day money management.
Research findings reveal a clear increase in “multi-banking,” with 47% of Canadians using online or challenger banks and 41% having relationships with both traditional and digital providers. Among consumers aged 18-64, the rate of those using digital banks increases to 52 percent.
Canadians cite practical benefits as a key motivation for using neobanks, including lower fees or better rates (42%) and stronger mobile experiences (29%). Similarly, 48% said they prefer financial apps that help them budget and manage money better.
In parallel, Canadians want public sector payments to reflect the way they currently operate. Almost seven in 10 (69%) believe governments should stop mailing checks and modernize payment and payment methods; 81% say direct deposit is the preferred way to receive government payments. Respondents see modernization as an opportunity to increase efficiency, equity, and accessibility.
“As Canadians create a multi-bank lifestyle, prepaid technology has emerged as the key infrastructure that makes this possible.” in question Jennifer TramontanaExecutive director of the CPPO. “Consumers are creating a financial system that works for them by choosing tools that prioritize convenience, lower costs and stronger money management. The opportunity now is to continue the momentum by supporting the right environment for Canada’s fintech developers to continue building these products for Canadians.”
Basic CPPO findings
Economic pressure is shaping financial behavior: 80% say better money management tools are important given economic uncertainty, and 75% say avoiding banking fees has become more important in the past year.
Canadians are reducing reliance on credit: 44% are actively trying to use their credit cards less for daily purchases.
Young Canadians are leading the way in adoption: Adults aged 18-34 are more likely to increase their use of reloadable prepaid compared to older Canadians.
CPPO found that consumers strongly support the practical value of prepaid service for consumers managing their finances:
- 45% of prepaid users find spending limits or budgeting tools to be the most useful feature;
- 40% cite convenience as their main reason for use, 39% cite the ability to set spending limits, and 33% cite security; And
- 44% prefer prepaid cards over credit or debit cards for online purchases.
