Wonder

Research Outline

Prepared for Hemanth | 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%).