Canadians want faster, simpler and safer payments
Author
Stephen Yun
Senior Analyst, Product and Market Research
Stephen's areas of focus include the Canadian Payment Methods and Trends and Payment Behaviour Tracker studies, and leveraging research insights to create a consumer/business payment narrative and drive business action for his business partners. Stephen has more than 20 years of experience leading marketing and customer experience research. He holds MBA and BBA degrees from the Schulich School of Business (York University) specializing in marketing and finance.
For over ten years, Payments Canada has provided a holistic view of Canada’s payment market and its influence on consumer and business behaviour through the publication of the Canadian Payment Methods and Trends report.
This year’s report (available October 2025) reveals key themes around the growth of digital payment usage and the demand for speed and convenience.
Preferences shift to new technologies
People in Canada want faster, easier payment experiences, and are turning to newer digital payment options to make them a reality.
Contactless payments are becoming more widespread, accounting for 58 per cent of total payment volume in 2024. Contactless growth has largely been driven by higher limits on contactless credit and debit card transactions, and the increase in contactless payment terminals at the point of sale. Wearables, such as fitness trackers and smart watches, were used to make 43 million of these transactions, a 10 per cent increase from 2023. Contactless payments will continue to rise as this option is accepted by a range of merchant categories (e.g., gas stations, entertainment venues, transit).
Fintechs are becoming a more mainstream method of international transfers. For the first time, a fintech (PayPal) was the most widely used method for sending money internationally (21 per cent). People in Canada are developing a greater comfort level and trust with using fintechs and big tech companies for making international payments, representing a behavioural shift away from mainly using banks. This shift can be attributed to lower costs, greater speed and transparency, and an overall simpler consumer payment experience.
Readiness to embrace the future
Tech-forward innovations like real-time payments and artificial intelligence (AI) are reshaping how payments in Canada are made, and consumers are ready to take advantage of what’s next.
Nearly one-half (49 per cent) of people in Canada find real-time payments appealing, and over one-third (36 per cent) would likely switch from their current payment methods to real-time payments, citing speed and convenience as key factors. The top three payment situations in which they want to send or receive money in real-time are to receive government payments (20 per cent), send money to an individual or business when the payment amount exceeds their daily Interac e-Transfer amount limit (20 per cent) and pay a credit card bill (19 per cent).
With the rise of AI-enabled solutions, like agentic commerce, the e-commerce space is set for further growth. More than a quarter of Canadians (28 per cent) are interested in AI-enhanced shopping experiences, like AI agents with capabilities to search, compare and complete purchases on a shopper’s behalf. These services will undoubtedly change how consumers and businesses interact with financial institutions and payment service providers. Incidentally, they will also change how fraudsters operate, introducing new and more complex challenges for institutions of any size.
Desire for both new and current methods to coexist
People in Canada want the flexibility to choose among both emerging payment innovations and longstanding methods they’ve grown comfortable using.
Despite its long-term decline, cash is frequently used by nearly half (48 per cent) of Canadians, as they consider it a fast and widely accepted payment option. Cash was used, on average, 3.5 times in a given week by those still using it. The most popular uses for cash are to pay for low-value ($20 or less) purchases (71 per cent), pay a tip (55 per cent) and repay borrowed money (38 per cent).
Half of all people in Canada are concerned that stores will become completely cashless, and 47 per cent believe that this will be a reality in the next 10 years. These concerns stem from a desire for a reliable, safe and secure backup payment option that is physical and accepted by all.
Preparing for the future of payments
Today, Canada’s payment ecosystem is more dynamic than ever before, shaped by new technologies and shifting consumer expectations driven by the need for speed and convenience. Understanding these shifts helps to anticipate what Canadians need today and prepare for what they will expect tomorrow.
Through a confluence of events, like the introduction of real-time payments and legislative changes that broaden access to Canada’s payment systems, the ecosystem is poised for further growth and innovation, ultimately leading to more inclusive, accessible and affordable payments for everyone in Canada.
To learn more about payment trends in Canada, read the upcoming 2025 Canadian Payment Methods and Trends report, which will be released this fall, on our research page.
