Table of Contents
Scope and Themes
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- Scope of this report
- What you need to know
- Data sources
- Consumer survey data
- Advertising Creative
- Abbreviations and terms
- Abbreviations
- Terms
- Companies mentioned in this report
Executive Summary
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- Industry highlights
- Changing landscape
- Consumer attitudes towards credit cards
Insights and Opportunities
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- Breaking Canadians’ bias against credit cards
- Asians represent a compelling demographic niche
- Duality creates new opportunities for issuers and brands
Inspire Insights
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- My Financial Service
- What’s it about?
- What we’ve seen
- Specifics
Market Size and Characteristics
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- Key points
- Total market size and top players
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- Figure 1: Top Canadian credit card issuers ranked by receivables, year ending April 2008 and April 2009
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- Figure 2: Canadian credit card banks, card service revenue, three months and six months ending April 2008 and April 2009
Competitive Context – Banking Overview
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- Key points
- Bank regulation in Canada
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- Figure 3: Big five Canadian banks, April 2009
Leading Issuers
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- Key points
- CIBC (Canadian Imperial Bank)
- Royal Bank of Canada (RBC)
- Scotiabank
- TD Bank (Toronto-Dominion)
- MBNA Canada Bank
- BMO (Bank of Montreal)
- Desjardins Group (Fédération des Caisses Desjardins du Québec)
- Canadian Tire
- Capital One Bank Canada
- J.P. Morgan Chase Canada
- Citigroup
- American Express
Canadian Payments Landscape
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- Key points
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- Figure 4: Credit Card payment rate (percentage of outstanding balance paid), March 2000 through March 2009
- Interac Association
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- Figure 5: Top five countries in debit use, 2007
- Figure 6: Interac Direct Payment transactions, merchants, terminals, C$ value, and users per year, 1997-2008
- Figure 7: Payment method used most among ABM cardholders, 1997-2008
- Credit card share is growing
- Visa vs. MasterCard share
- MasterCard is growing faster but is still well behind
- MasterCard leads in cards and accounts
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- Figure 8: Visa vs. Mastercard in Canada, 2008-07
- Figure 9: Credit card statistics, VISA and MasterCard, 1990-2008
Market Drivers
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- Key points
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- Figure 10: Credit card delinquency and loss statistics, VISA and MasterCard, 2004-09
- Economic forecast: Stronger growth expected in Canada
- Strong growth in disposable incomes
- Significant differences between Canada and U.S. housing markets
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- Figure 11: Subprime mortgage default rates, U.S. and Canada, 2001-08
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- Figure 12: Prime mortgage default rates, U.S. and Canada,1998-2008
Canadian Population and Immigration Trends
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- Key points
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- Figure 13: Canadian population, by province, 2004-08
The Regulatory Environment and Duality
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- Key points
- Duality and debit cards
- What’s likely to happen next
- Consumer awareness of credit card duality
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- Figure 14: Awareness of ending of duality ban, by gender, June 2009
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- Figure 15: Awareness of ending of duality ban, by province, June 2009
- Figure 16: Has recently been offered another card brand, by gender, June 2009
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- Figure 17: Has recently been offered another card brand, by income, June 2009
- Figure 18: Has recently been offered another card brand, by race, June 2009
Credit Card Regulation and Legislation – Other Developments
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- Key points
Innovations and Innovators
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- Capital One’s guaranteed MasterCard for newcomers
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- Figure 19: Capital One Guaranteed Mastercard for newcomers direct mail advertisement, 2009
Advertising and Promotion
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- Key points
- Direct mail volume plunges in first quarter 2009
- New and notable credit card direct mail campaigns
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- Figure 20: MBNA direct mail advertisement, 2009
- Figure 21: Scotiabank direct mail advertisement, 2009
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- Figure 22: Scotiabank direct mail advertisement, 2008
- Figure 23: Citibank direct mail advertisement, 2009
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- Figure 24: CIBC direct mail advertisement, 2008
- Figure 25: CIBC direct mail advertisement, 2009
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- Figure 26: American Express direct mail advertisement, 2009
- Television advertising
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- Figure 27: RBC television advertisement using Andy Kim celebrity endorsement, 2009
- Figure 28: RBC small business television advertisement, 2009
- Figure 29: TD Bank television advertisement with Kelly and Regis, 2009
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- Figure 30: TD Banknorth television advertisement with Kelly and Regis, 2009
- Figure 31: TD Banknorth television advertisement with Kelly and Regis, 2009
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- Figure 32: TD Banknorth television advertisement with Kelly and Regis, 2009
The Consumer
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- Key points
- Miles, points, or cashback?
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- Figure 33: Credit card types owned, by gender, June 2009
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- Figure 34: Credit card types owned, by age, June 2009
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- Figure 35: Credit card types owned, by HH income, June 2009
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- Figure 36: Reasons for using credit cards, by gender, June 2009
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- Figure 37: Credit card types used, by HH income, June 2009
- Credit, debit, or cash?
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- Figure 38: Payment methods used, by gender, June 2009
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- Figure 39: Payment methods used, by age, June 2009
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- Figure 40: Payment methods used, by HH income, June 2009
- Credit cards preferred for big-ticket items
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- Figure 41: Credit card usage preference by category, averages of a 5 point scale where 1=never and 5=always, by gender, June 2009
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- Figure 42: Credit card usage preference by category, ranked, by age, June 2009
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- Figure 43: Credit card usage preference by category, by HH income, June 2009
- Canadians are aggressive about paying off balances
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- Figure 44: Card payment activity, by gender, June 2009
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- Figure 45: Card payment activity, by age, June 2009
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- Figure 46: Card payment activity, by HH income, June 2009
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- Figure 47: Credit card balances, by gender, June 2009
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- Figure 48: Credit card balances, by age, June 2009
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- Figure 49: Credit card balances, by HH income, June 2009
- Canadians stick to one or two cards
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- Figure 50: Number of cards used each month, by gender, June 2009
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- Figure 51: Number of cards used each month, by age, June 2009
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- Figure 52: Number of cards used each month, by HH income, June 2009
- Canadians read direct mail, but are leery of e-mail
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- Figure 53: Attitudes towards credit card advertising, by gender, June 2009
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- Figure 54: Attitudes towards credit card advertising, by age, June 2009
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- Figure 55: Credit card mail solicitations received, by gender, June 2009
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- Figure 56: Credit card mail solicitations received, by age, June 2009
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- Figure 57: Credit card mail solicitations received, by HH income, June 2009
- Building credit is a major influence on choosing a card
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- Figure 58: Major influences on credit card choice, by gender, June 2009
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- Figure 59: Major influences on credit card choice, by age, June 2009
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- Figure 60: Major influences on credit card choice, by HH income, June 2009
- Debit is preferred over credit cards; the internet still worries many
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- Figure 61: Opinions about credit cards, by gender, June 2009
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- Figure 62: Opinions about credit cards, by age, June 2009
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- Figure 63: Opinions about credit cards, by HH income, June 2009
- Recent penalty actions taken by credit card issuers
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- Figure 64: Recent actions by credit card issuer, gender, June 2009
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- Figure 65: Recent actions by credit card issuer, by age, June 2009
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- Figure 66: Recent actions by credit card issuer, by HH income, June 2009
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- Figure 67: Recent actions by credit card issuer, by province, June 2009
- Canadians not loyal when it comes to credit cards
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- Figure 68: Recent credit card related activities, by gender, June 2009
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- Figure 69: Recent credit card related activities, by age, June 2009
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- Figure 70: Recent credit card related activities, by HH income, June 2009
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- Figure 71: Recent credit card related activities, by province, June 2009
- Recent credit card behavior
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- Figure 72: Recent credit card behavior, by gender, June 2009
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- Figure 73: Recent credit card behavior, by age, June 2009
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- Figure 74: Recent credit card behavior, by HH income, June 2009
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- Figure 75: Credit card use compared to one year ago, by gender, June 2009
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- Figure 76: Credit card use compared to one year ago, by age, June 2009
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- Figure 77: Credit card use compared to one year ago, by province, June 2009
The Consumer – Focus on Asian Newcomers
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- Key points
- Asians are highly desirable credit card customers
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- Figure 78: Opinions about credit cards, by race/ethnicity, June 2009
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- Figure 79: Recent credit card behavior, by race/ethnicity, June 2009
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- Figure 80: Credit card usage preference, by category, ranked, by race/ethnicity, June 2009
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- Figure 81: Recent actions by credit card issuer, by race/ethnicity, June 2009
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- Figure 82: Credit card types used, by race/ethnicity, June 2009
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- Figure 83: Major Influences on credit card choice, by race/ethnicity, June 2009
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- Figure 84: Attitudes towards credit card advertising, by race/ethnicity, June 2009
Cluster Analysis
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- Unrewarded, debit-carders
- Informed, offer-readers
- Rewarding, full pay-offers
- Characteristic tables
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- Figure 85: Credit card user clusters, June 2009
- Figure 86: Type of credit card(s) owned, by credit card user clusters, June 2009
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- Figure 87: Reason(s) for using credit cards, by credit card user clusters, June 2009
- Figure 88: Type of purchases for which respondent uses credit cards, by credit card user clusters, June 2009
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- Figure 89: Payment behavior, by credit card user clusters, June 2009
- Figure 90: Attention paid to marketing materials, by credit card user clusters, June 2009
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- Figure 91: Features influential in choice of credit card, by credit card user clusters, June 2009
- Figure 92: Credit and debit preferences, by credit card user clusters, June 2009
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- Figure 93: Awareness of duality, by credit card user clusters, June 2009
- Figure 94: Interest in receiving different card brand, by credit card user clusters, June 2009
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- Figure 95: Recent credit card company activity impacting resondent, by credit card user clusters, June 2009
- Figure 96: Credit card user activity, by credit card user clusters, June 2009
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- Figure 97: Volume of credit card solicitations received, by credit card user clusters, June 2009
- Demographic tables
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- Figure 98: Credit card user clusters, by gender, June 2009
- Figure 99: Credit card user clusters, by age group, June 2009
- Figure 100: Credit card user clusters, by household income group, June 2009
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- Figure 101: Credit card user clusters, by marital status, June 2009
- Figure 102: Credit card user clusters, by education group, June 2009
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- Figure 103: Credit card user clusters, by employment status, June 2009
Custom Consumer Groups
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- Key points
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- Figure 104: Credit card types owned, by gender and income, June 2009
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- Figure 105: Credit card types used, by marital status, June 2009
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- Figure 106: Credit card types used, by marital status and children, June 2009
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- Figure 107: Card payment activity, by gender and income, June 2009
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- Figure 108: Payment methods used, by education, June 2009
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- Figure 109: Payment methods used, by gender and age, June 2009
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- Figure 110: Credit card usage preference by category, ranked, by education, June 2009
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- Figure 111: Credit card usage preference by category, ranked, by gender and income, June 2009
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- Figure 112: Opinions about credit cards, by education, June 2009
Appendix: Trade Associations
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