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What's Next for Prepaid in 2025 and Beyond



Prepaid, the modern payments technology platform propelling growth in Canada, is the foundation behind the launch of new digital payments and banking solutions into market for the benefit of more Canadian consumers and businesses.


But what's behind the market's growth, and what use cases exist to continue propelling this market forward? Marc Gendron, Executive Vice President - North America for CPPO Member Pine Labs shared his insights about the Canadian prepaid market, including what's next for prepaid's development.


What do you think is the biggest force propelling the prepaid market’s growth today?


The primary driver behind the rapid growth of the prepaid market is the increasing demand for frictionless, secure, and versatile payment options. Today’s consumers expect digital-first solutions that prioritize convenience and control, while businesses leverage prepaid instruments like gift cards and brand wallets to enhance customer acquisition, engagement, and retention. Prepaid solutions facilitate financial inclusion and support loyalty-driven ecosystems, making them essential to customer-centric and enterprise payment strategies. The evolution of digital commerce and the rising popularity of prepaid wallets further solidify their role as key enablers in the modern payments landscape. 


What’s one product or service that prepaid is impacting today that isn’t getting enough attention in the payments industry?


Brand wallets are revolutionizing how businesses engage with customers. While traditional prepaid options like gift cards are well-known, brand wallets enable businesses to create a seamless ecosystem for rewards, refunds, and cash back options, enhancing customer experience. This dual benefit helps to retain consumers and boost repeat purchases. Additionally, digital gift cards are becoming vital for increasing brand visibility and facilitating flexible spending, ensuring comprehensive customer engagement.


What’s the biggest prepaid innovation use case you’re seeing today?


We're seeing significant innovation in the various use cases for gift cards and brand wallets to improve customer loyalty and enhance overall customer satisfaction. Brands are utilising gift cards not just as payment tools but as experiential offerings that provide greater consumer choice, driving higher purchase conversions. The rise of brand wallets transforms transactional moments into opportunities for deeper customer engagement. These solutions keep value within the brand ecosystem, promoting repeat purchases while improving user journeys and driving greater overall utility.

 

 How can the prepaid market best position itself to navigate today’s regulatory climate?


Prepaid solution providers should prioritize transparency, compliance, and customer-centric innovation. Adhering to regulatory guidelines is essential for maintaining consumer trust. Collaboration with businesses and regulators is crucial to streamline processes while safeguarding data security and user privacy. Solutions that offer enhanced traceability and strong fraud prevention measures will not only ensure compliance but also establish industry benchmarks for reliability and consumer confidence. 


What’s new in prepaid at your company? Tell us about your latest product innovations and where it’s gaining the most traction.

We are committed to innovating our prepaid solutions to enhance impact and usability. Our platform supports various gift card formats and brand wallets, enabling businesses to address diverse needs—from boosting customer loyalty to managing seamless refunds. Gift cards remain a flagship product, providing flexible solutions for brand enhancement and revenue growth. Brand wallets, particularly in retail and e-commerce, have seen significant traction as they offer innovative ways to keep customers engaged and satisfied.


What’s next for prepaid innovation over the next 1-3 years?

The next wave of prepaid innovation will focus on delivering personalized, real-time rewards through gift cards and brand wallets. As businesses gain more insights into consumer preferences, prepaid solutions will evolve to provide hyper-targeted, data-driven offers that enhance user experiences. We foresee substantial growth in the adoption of brand wallets as businesses harness their potential to foster loyalty and improve overall customer satisfaction. Gift cards will also become more dynamic, user centric, and integrated across omnichannel platforms.

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