Prepaid cards aren’t just gift cards anymore. They’ve become one of the fastest-growing ways Canadians and consumers worldwide choose to pay, save, and manage their money. From buying a coffee to receiving a paycheck, prepaid is showing up everywhere.
The Canadian market tells the story. Total loads on prepaid accounts grew from CA$8.9 billion in 2021 to about CA$11.4 billion in 2023, a 27% increase in just two years. And the momentum isn’t slowing. Forecasts show the market could surpass CA$17.4 billion in annual loads by 2028, with growth across both open-loop and restricted access network (RAN) prepaid accounts, from consumer gift cards to corporate-funded payroll and incentive programs.
So what’s fueling the shift? Consumers want payment methods that are fast, secure, and flexible. Prepaid delivers all three while opening the door to new innovations like digital wallets, earned wage access, and buy-now-pay-later programs. For financial institutions, fintechs, and brands, prepaid could just be the next big strategic opportunity.
The rise of prepaid is a structural shift in how people and businesses move money. Globally, prepaid adoption continues to accelerate, with consumers turning to prepaid for everything from online shopping to international travel. In Canada, the market has shown particularly strong momentum over the past several years.
According to Payments Canada, prepaid card transaction volume and value both grew in 2022, reaching 330 million transactions worth $21.5 billion. The number of cards in circulation climbed to nearly 84 million, a 10% year-over-year increase. Much of that growth has come from open-loop prepaid cards (branded Visa or Mastercard products that can be used anywhere those networks are accepted). Open-loop cards grew by 54% over the past five years, compared with 31% growth for closed-loop prepaid cards (merchant- or service-specific cards, like Starbucks or transit passes for example).
And the outlook is even stronger. One report by the Canadian Prepaid Providers Organization (CPPO) and Datos Insights projects steady growth ahead, with total loads on prepaid accounts expected to rise from CA$11.4 billion in 2023 to more than CA$17.4 billion by 2028.
That growth will be fueled by new use cases, from corporate payroll and incentives to government disbursements, gig worker pay, and digital-first banking alternatives.
For retailers, fintechs, and financial institutions, this paints a clear picture: prepaid is becoming an essential part of Canada’s payments mix, not a niche category.
Consumers, not businesses, are leading the charge in prepaid adoption. Why? Canadians increasingly see prepaid as a payment option that offers more control, security, and convenience than traditional cards.
Research from a CPPO report highlights the top reasons:
These motivations extend across demographics, but adoption is particularly strong among younger Canadians, international students, gig workers, and those from underbanked communities. For these groups, prepaid provides an accessible and flexible alternative to traditional banking.
But despite the many reasons consumers are choosing prepaid, one thing is certain: this modern payment method is solving real consumer pain points around security, control, and convenience, which makes prepaid cards a powerful platform for business innovation.
Where consumers go, businesses follow. The rapid adoption of prepaid cards in Canada creates a clear opening for financial institutions, fintechs, and brands to build stronger customer relationships and unlock new revenue streams.
Prepaid has evolved far beyond gift cards. Today, it’s a versatile platform that supports payroll and corporate incentives, government disbursements, gig economy wages, loyalty programs, and even buy-now-pay-later services. Each of these use cases ties into a broader shift away from cash and cheques toward digital-first solutions.
The business case is compelling. Prepaid programs generate revenue through transaction fees, interchange, and premium card services, while also driving customer acquisition and retention. And because prepaid is perceived as both secure and convenient, it builds trust—a critical differentiator in a competitive payments landscape.
The opportunity doesn’t stop with consumer-based businesses. B2B payments remain one of the most inefficient corners of finance, with manual processes, paper cheques, and reconciliation delays slowing down entire industries. According to the 2025 Amex Trendex survey, more than a quarter of decision-makers say they’ve stopped working with a buyer or supplier due to late or slow payments. Other studies show nearly half of all B2B invoices in North America are still paid late.
This is where virtual prepaid cards come in. By tokenizing transactions and automating settlement, virtual cards reduce fraud risk, eliminate manual errors, and help both buyers and suppliers get paid faster. Research shows the B2B virtual card segment is on track to grow fourfold in the next seven years, and more than three-quarters of middle-market CFOs are interested in accepting them. Yet adoption today remains relatively low, meaning businesses that embrace virtual prepaid cards now can gain a first-mover advantage.
So what does this look like in practice?
These kinds of use cases highlight why prepaid is gaining traction not just with consumers, but also with CFOs and finance teams who are under pressure to modernize payments, reduce friction, and strengthen supplier relationships.
Tapping into the prepaid opportunity requires the right infrastructure to scale securely, efficiently, and with the customer experience in mind. That’s where DCGroup comes in.
As a leading Canadian provider of prepaid card programs, we deliver Visa®, Mastercard®, and Interac® solutions with everything under one roof—from issuing and sponsorship to processing and payments. With an in-house development team, optional white-label customer support, and a dedicated project manager assigned to each program, you can avoid wasted time and costs on outsourcing while offering a seamless, branded experience.
Here’s what sets our prepaid platform apart:
With flexible APIs, robust reporting, and full account transparency, DCGroup empowers organizations to design prepaid programs that fit their unique needs, whether that’s payroll, incentives, consumer spending, or cross-border payments.
The rise of prepaid isn’t slowing down. From consumers seeking speed and security, to businesses modernizing outdated payment processes, prepaid cards are embedding themselves in the Canadian payments landscape.
DCGroup makes it easy to bring these solutions to life with virtual card issuance, white-label portals, and 24/7 customer support, all backed by secure, scalable technology.
Ready to create your own custom card program? Learn more today and see how DCGroup can help you design a prepaid solution that works for your customers, your business, and your future.