How Prepaid Platforms Build Financial Ecosystems for More Canadians

Prepaid platforms have evolved far beyond simple payment mechanisms into comprehensive financial ecosystems that serve underbanked populations from new Canadians to gig workers and Indigenous communities.

This was among the topics discussed at the CPPO's Symposium 2025 when industry leaders from My Beacon, Mastercard, and One Feather shared how prepaid eliminates traditional banking barriers while creating new pathways to economic participation and a shift toward truly inclusive financial services.

Traditional banking systems have long excluded significant portions of the population from essential financial services. However, prepaid platforms are emerging as a powerful alternative to traditional bank accounts, reaching underbanked and underserved populations from new Canadians to small business owners by offering them accessible financial services that bypass conventional barriers.

Breaking Down Traditional Banking Barriers

During the "Prepaid Platforms for Financial Inclusion" panel the CPPO's annual thought leadership Symposium in April, Stuart Szabo, Co-Founder & CEO of My Beacon, emphasized how prepaid solutions are particularly transformative for newcomers to Canada. His company's digital wallet allows immigrants to open Canadian accounts and access financial services even before arriving in the country, eliminating traditional barriers like credit history requirements and the need for physical branch visits.

Lawrence Lewis, Founder of One Feather, spoke to the critical role prepaid technology plays in serving Indigenous communities, where up to 15% of the population remains unbanked. "We are an impact-driven company and exist to reimagine the digital interface that Indigenous people experience across the country," Lewis explained, highlighting how their partnership with Mastercard delivers Indigenous-focused banking solutions that honor cultural values while providing modern financial access.

Prepaid as an Innovation Platform

Balinder Ahluwalia, Senior Vice President of Market Development at Mastercard Canada, reinforced the company's commitment to financial inclusion through prepaid platforms. Mastercard's global experience shows that prepaid solutions are particularly effective for reaching underserved populations, including gig workers, youth, and rural residents who face barriers to traditional banking services.

Market Growth and Impact

The speakers operated within the context of a rapidly expanding market - Canada's prepaid industry now represents a $14 billion economy, projected to reach $17 billion by 2025. This growth reflects prepaid's evolution from a simple payment method to a comprehensive platform for financial innovation and inclusion.

The consensus among panelists was clear: prepaid technology is not just filling gaps in the financial system but actively creating new pathways to economic participation for previously underserved communities. As these solutions continue to evolve, they represent a crucial tool for achieving broader financial inclusion across Canada's diverse population.

Beyond Payments: Building Financial Ecosystems

The panel discussions revealed that prepaid platforms are evolving far beyond simple payment mechanisms. Speakers highlighted how these solutions are creating comprehensive financial ecosystems that address multiple barriers simultaneously—from credit building to financial literacy education. The success stories shared, including partnerships with programs like Junior Achievement and targeted solutions for Uber drivers, demonstrate prepaid's potential to serve as a foundation for broader economic empowerment.

Key Discussion Themes

• Addressing critical unbanked populations: Indigenous communities face disproportionately high unbanked rates of 22-48%, while newcomers to Canada, gig workers, and small business owners struggle with traditional banking barriers like credit checks, minimum balance requirements, and complex onboarding processes that prepaid solutions can effectively circumvent.

  
  

• Digital credentials as financial access keys: The use of digital credentials to unlock entitlements and benefits allows underserved populations, particularly Indigenous communities, to create bank accounts quickly and access financial services that were previously inaccessible, creating pathways to economic participation.

  
  

• Friction reduction through global accessibility: Prepaid platforms offer worldwide access and convenience, eliminating pain points for mobile populations like immigrants and gig workers who need immediate access to funds across borders, with real-world applications demonstrated through products like the Uber driver card.

  
  

• Financial literacy integration: Rather than treating financial education as a separate service, successful prepaid platforms are building literacy directly into the product experience itself, with examples like Junior Achievement programs using prepaid cards to teach money management skills to children and young adults.

  
  

• Community-centered economic ecosystems: Indigenous-focused prepaid solutions emphasize creating closed-loop systems where communities can conduct business with each other and retain economic resources locally, supporting wealth redistribution models that align with Indigenous values and community structures.

  
  

• Regulatory revolution and consumer protection: The industry recognizes the need for regulatory harmonization and clarity around consumer protection, pricing transparency, and clear communication about prepaid capabilities, moving away from outdated perceptions toward recognition of prepaid as sophisticated financial infrastructure.

  
  

• Credit building and wealth deployment: Modern prepaid platforms serve as stepping stones to traditional credit products while also enabling wealth deployment within underserved communities, allowing users to build financial histories and access broader economic opportunities previously unavailable to them.

  
  

• Rebranding for modern capabilities: Industry leaders acknowledged that prepaid technology has evolved far beyond its original scope, requiring updated branding and consumer education to reflect its current capabilities as comprehensive financial service platforms rather than simple payment cards.