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Research Outline

Prepared for Hemanth S. | Delivered May 28, 2020

Market Size For Corporate Payments In Canada

Goals

We provide a preliminary analysis of the market size for corporate payments in Canada and further analysis of charged fees, both direct (transaction fees) and indirect (staff/tech-related costs), for corporate-size payments (transactions over CAN$50K).

Early Findings

  • In 2015, The entire global payments market was estimated to be USD$1 trillion, growing at 8% CAGR.
  • In 2018, a global payments revenue of USD$2.9 trillion was anticipated by 2022, representing a significant share of overall banking revenues.
  •  North America region's market share is estimated to be 17%, of which approximately 9.5% corresponds to Canada, and 90.5% to USA region (21% of the global commercial opportunity). Thus, all the above represents an anticipated revenue of USD$46.8 billion in Canada by 2022.
  • The cost of sending and receiving payments varies from financial to financial institution but usually fees not apply in Canada. For example, HSBC and OFX are not charging over CAN$50K, but Canada Trust typically charges CAN$80 in operations over CAN$50K.
  • A further break down of direct (ie. transaction fees) and indirect (ie. related staff/tech costs) costs of corporate payments in Canada is not readily available but we attempted to estimate these numbers based on an analysis of competitors: offices and running costs (12%), operations and customer support teams (14%), margin and growing (18%), building products (20%), and banking partners & money-moving costs (36%).