Stephen Yun
Senior Analyst, Market Insights, Payments Canada
Canadians desire payment options that make their lives easier, whether digital or non-digital.
Each year, Payments Canada provides an overview of the retail payment trends observed nationally through the publication of the Canadian Payment Methods and Trends report. This year’s report (available October 2024) reveals key themes around the growth of digital payment options and Canadians’ continued interest in traditional ways to pay.
Embracing innovation
Some of the innovations influencing the purchasing behaviours and preferences of Canadians include real-time payments, generative artificial intelligence (GenAI) and contactless payment technology.
The majority of Canadians (60%) would send real-time payments if the option was available. The top three payment situations for sending money in real-time include sending money to an individual or business when the payment amount exceeds their daily Interac e-Transfer amount limit (20%), paying a credit card bill (19%) and paying household expenses such as water, electricity, phone and internet (17%).
Almost one in two businesses (49%) intend to use GenAI to make their operations and processes more efficient. The top three GenAI applications perceived to benefit businesses most are cited as fraud detection and prevention (44%), automating payment processing (37%) and creating personalized customer experiences (29%).
Contactless payment options like wearables (for example, fitness trackers and smartwatches) were used to initiate 44 million payment transactions in 2023, totalling $1.1 billion. More than 1 in 10 Canadians (13%) use smart home devices and social media to make purchases.
Holding onto cash
While Canadians are embracing new payment options, they still want choice and flexibility. Despite the declining trend in cash usage, over half of Canadians (55%) indicated no desire to go completely cashless.
Cash is still a preferred payment choice because it is widely accepted (38%), fast (37%), you can use your own funds (26%), it’s easier and more convenient than other payment methods (21%) and it’s easier to control and keep track of (21%).
Finally, 63% of Canadians would still use cash if a digital Canadian dollar was introduced. Although the use of digital payments among Canadians continues to grow, the end of cash is still far off.
Building a financial future that meets the unique needs of Canadians
Canadian consumers and businesses have made it clear that when it comes to payments, convenience, efficiency, security, privacy and low costs are vital to them.
We continue to see an increased demand for more digital payment options and frictionless payment experiences that address these needs. However, Canadians also want continued access to tried and true payment options due to their ease of use and dependability.
Understanding Canadians’ unique payment attitudes and behaviours is critical to ensure we create a financial future that benefits all Canadians. To learn more about the way Canadians pay and get paid, please visit payments.ca.
