As the payment landscape evolves, a recent update from Payments Canada reveals that security understandably remains the top priority for Canadians when evaluating emerging payment technologies.
Innovations like generative artificial intelligence (GenAI), social commerce, and pay-by-bank are poised to transform how Canadians shop and pay, but hesitancy persists due to concerns over privacy and fraud.
This cautious approach underscores the need for a balance between convenience and robust security measures to foster trust in these new systems.
The Payments Canada study highlights that while Canadians value ease and efficiency, security and privacy are non-negotiable.
For instance, pay-by-bank, a method allowing direct account-to-account (A2A) transfers without sharing card details, is appealing to 29% of Canadians, with 32% citing its enhanced security as the primary draw.
By redirecting users to their secure online banking platforms, pay-by-bank minimizes the risk of data breaches, addressing a key concern for online shoppers.
This method is particularly popular among newcomers to Canada (53%) and gig workers (47%), who see it as a safer alternative to traditional card payments.
Social commerce, where purchases are made directly on platforms like Instagram or TikTok, is gaining traction, with 13% of Canadians having made such transactions.
However, security concerns deter widespread adoption, with 48% of those uninterested citing risks as their main reason.
Despite the convenience (noted by 40% of enthusiasts), the fear of fraud or data exposure remains a significant barrier.
Only 18% of Canadians find social commerce appealing, reflecting a broader wariness about sharing financial details on social platforms.
Generative AI, with applications in fraud detection, personalized discounts, and virtual shopping assistants, also elicits mixed reactions.
While 43% of Canadians are interested in leveraging GenAI, 44% are not, and 13% remain undecided.
Younger Canadians (18–34) show greater enthusiasm (56%) compared to those over 55 (31%), but the technology’s potential to enhance security—particularly in fraud prevention (valued by 45%)—is a strong selling point.
Still, unfamiliarity and skepticism about AI’s reliability in handling sensitive financial data contribute to reluctance.
The study also notes that many Canadians are reserving judgment, waiting for greater familiarity with these technologies before embracing them.
This cautious stance is evident across demographics, with 38% neutral on pay-by-bank and 36% on social commerce.
Incentives like cashback or rewards could sway 60% of Canadians toward pay-by-bank, suggesting that trust-building measures could accelerate adoption.
Payments Canada’s findings, detailed in their upcoming SUMMIT conference (May 6–8, 2025), emphasize that security is the lens through which Canadians view payment innovations.
As Jon Purther, Director of Research at Payments Canada, states, Canadians prioritize security and privacy while “expecting ease and convenience.”
To gain traction, new technologies must now be able to prove their safety without compromising user experience.
With $107 trillion cleared through Payments Canada’s systems in 2024, it is vital to ensure these innovations meet Canadians’ security expectations, paving the way for a secure, frictionless payment ecosystem.