Canada reaches $12.2 trillion in payment transactions in 2024, with credit cards accounting for 1 in 3 transactions. This, according to a recent update shared by Payments Canada.
Some of the main research report highlights are as follows:
- Digital payments represented 86 per cent of total payment volume and 77 per cent of total payment value.
- Contactless payments accounted for 58 per cent of transactions.
- E-commerce transactions totalled $77 billion, representing 6 per cent of retail sales.
- Thirteen per cent of Canadians used smart home devices or social media for purchases in any given month.
- Number of credit cards in circulation reached 112 million, a 5 per cent increase year-over-year.
- More than a quarter (28 per cent) of Canadians find AI-generated online shopping support appealing.
- Sixty-four per cent of business leaders are exploring agentic AI, a form of ‘self-thinking’ artificial intelligence.
Some of the key growth and trends identified by Payments Canada among payment methods over the past five years:
- Online transfers led growth in volume and value at 175 per cent and 219 per cent, respectively.
- Credit cards led all other payment cards in growth, increasing by 14 per cent in volume and 32 per cent in value.
- Prepaid cards ranked second behind credit cards in growth, increasing by 13 per cent in volume and 31 per cent in value.
- EFT value continues to rise, increasing by 48 per cent.
- Cheque value continues to fall, declining by -24 per cent.
In addition to this report, Payments Canada has recently noted that it submitted its response to the federal government’s pre-budget consultation, emphasizing the critical “role of Payments Canada’s national infrastructure in powering Canada’s economy.”
The submission calls for continued collaboration with the Government of Canada and identifies opportunities to “support Budget 2025 priorities, including specific recommendations toward modernizing Canada’s payment infrastructure to boost competition, economic growth and prosperity.”
Payments Canada said that it currently maintains a strong partnership with the Government of Canada in order to promote “openness and competition in Canada’s financial sector, leveraging its expertise to inform policies and keep the national critical payment infrastructure resilient and innovative.”