Foreign Currency Exchange Services in Canada - Market Research Report (2014-2029)
New York, United States
Last Updated: February 2024
NAICS 52313aCARevenue
$313.1m
Past 5-Year Growth
Profit
$X.Xm
Employees
3,415
Businesses
178
Wages
$XX.Xm
Foreign Currency Exchange Services in Canada industry analysis
Pressures from external competition by banks offering foreign exchange services have limited growth. More foreign currency exchange houses provide services to financial institutions by participating in the supply chain of foreign exchange, supplying banks with banknotes wholesale, or providing the service directly as an outsourced agent. Alongside favorable economic trends during the majority of the five years and the proliferation of online services, operators have expanded demand by extending the reach of their services. Revenue is expected to decrease at a CAGR of 2.0% over the five years 2024, with a decrease of 1.0% to an estimated $313.0 million in 2024 alone, with profit decreasing to 1.1%.
Trends and Insights
- Despite lingering adverse travel conditions from the COVID-19 pandemic, revenue recovered from the pent-up travel demand endured by foreigners around the globe. Revenue is becoming less volatile as the world settles back to normalcy.
- Retail is still the largest market for exchange houses. Although trends are shifting toward online services, physical locations are still popular due to their availability at international airports.
- Canadian foreign currency exchange houses mostly follow population and tourism trends. Nearby airports, which drive the market, also track population patterns.
- Competition is very high for foreign currency exchange services. Product differentiation is often limited, so Canadian exchange houses must compete on price and reputation.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 2.0 % over the past five years, to reach an estimated $313.1m in 2024.
Trends and Insights
Despite COVID-19 travel restrictions during the peak of the pandemic, industry revenue is slowly growing
- As inbound and outbound travel declined significantly in 2020, demand for foreign currency exchange services tumbled. Since people could not travel, most currency exchange services were no longer needed, causing revenue to decline by 24.4% in 2020 alone.
- Additional trends and insights available with purchase
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Travellers will continue to improve revenue the further we get from the pandemic
- As consumers resumed regular travel after the pandemic, currency exchange houses immediately began improving from their decline during the pandemic's peak. This trend is expected to continue moving forward unless something drastic occurs again that disrupts the global economy and global travel.
Biggest companies in the Foreign Currency Exchange Services in Canada
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Currency Exchange International Corp. | 14.2 | N/A | N/A |
To view the market share and analysis for all 1 top companies in this industry, view purchase options.
Products & Services Segmentation
Foreign Currency Exchange Services in Canada
Products & Services
Industry revenue is measured across several distinct product and services lines, including Retail banking, Online foreign exchange and In-store foreign exchange. Retail banking is the largest segment of the Foreign Currency Exchange Services in Canada.
Trends and Insights
Retail banking is the industry's largest segment
- The retail banking segment includes foreign exchange at retail banks, with many of the industry's operators offering their services through traditional retail banks on a consignment basis.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Commercial Banking in Canada
Complementors
- There are no industries to display.
International industries
- Commercial Banking in the US
- Foreign Currency Exchange Services in Australia
Table of Contents
About this industry
Industry definition
The Foreign Currency Exchange Services industry in Canada includes operators that offer foreign currency exchange services to consumers and businesses as a primary source of revenue. Industry services include business-to-business payment services and traditional currency exchange. Bank holding companies that do not charge fees for exchange services are not included in the industry, while ATMs are not considered establishments.
What's included in this industry?
Providing foreign currency exchange services for consumersProviding currency exchange services for businessesProviding bulk foreign currency exchange to banksCompanies
Currency Exchange International Corp.Purchase this report to view all 1 major companies in this industry.
Related Terms
KIOSKCOMMISSION REVENUEBID-ASK SPREADIndustry Code
NAICS 523130 - Foreign Currency Exchange Services in Canada
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Despite lingering adverse travel conditions from the COVID-19 pandemic, revenue recovered from the pent-up travel demand endured by foreigners around the globe. Revenue is be...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Retail is still the largest market for exchange houses. Although trends are shifting toward online services, physical locations are still popular due to their availability at...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Canadian foreign currency exchange houses mostly follow population and tourism trends. Nearby airports, which drive the market, also track population patterns.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each province
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each province in 2024
- Number and share of revenue each province accounts for in 2024
- Number and share of wages each province accounts for in 2024
- Number and share of employees in each province in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Competition is very high for foreign currency exchange services. Product differentiation is often limited, so Canadian exchange houses must compete on price and reputation.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Large companies are increasingly relying on technology to remain competitive amid intense competition. Large currency exchange houses use technology to identify the most desi...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Currency Exchange International Corp.'s performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for Currency Exchange International Corp., and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Economic health keeps the industry’s performance afloat. Improving economic conditions will continuously increase tourism and create more demand for currency exchange service...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Foreign currency exchange services purchase costs have been relatively stable. Evolving trends have raised the price of computer systems and programs to aid operations.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Assets (2017-2022)
- Liabilities (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Canada include:
- Statistics Canada
- Industry Canada
- Canadian Business Patterns
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Foreign Currency Exchange Services industry in Canada in 2024?
The market size of the Foreign Currency Exchange Services industry in Canada is $313.1m in 2024.
How many businesses are there in the Foreign Currency Exchange Services in Canada industry in 2024?
There are 178 businesses in the Foreign Currency Exchange Services industry in Canada, which has grown at a CAGR of 1.0 % between 2019 and 2024.
Has the Foreign Currency Exchange Services industry in Canada grown or declined over the past 5 years?
The market size of the Foreign Currency Exchange Services industry in Canada has been declining at a CAGR of 2.0 % between 2019 and 2024.
What is the forecast growth of the Foreign Currency Exchange Services industry in Canada over the next 5 years?
Over the next five years, the Foreign Currency Exchange Services industry in Canada is expected to grow.
What are the biggest companies in the Foreign Currency Exchange Services market in Canada?
The biggest company operating in the Foreign Currency Exchange Services market in Canada is Currency Exchange International Corp.
What does the Foreign Currency Exchange Services in Canada include?
Providing foreign currency exchange services for consumers and Providing currency exchange services for businesses are part of the Foreign Currency Exchange Services industry.
Which companies have the highest market share in the Foreign Currency Exchange Services in Canada?
The company holding the most market share in Canada is Currency Exchange International Corp..
How competitive is the Foreign Currency Exchange Services industry in Canada?
The level of competition is high and increasing in the Foreign Currency Exchange Services industry in Canada.
