Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Canada’s Retail Payments Boom: $11.9 Trillion Growing Fast
Payments Report | Oct 4, 2024
Image: Canada Payments Payment Methods and Trends Report 2024
Canada's Retail Payments Surge: $11.9 Trillion in Transactions in 2023
Payments Canada recently published it's 'Canadian Methods and Trends Report 2024' (91 page PDF report; see release). In 2023, Canada’s retail payments saw 6% growth over the previous year (significant) totalling $11.9 trillion across 21.7 billion transactions. The main takeaway is that digital payments are leading the way, cash use is changing, contactless payments are becoming more popular, and online and international payments are on the rise.
Digital Payments Lead the Way
- 86% of the total payment volume was digital
- 75% of the total payment value was made digitally
Payment Method Breakdown
- Credit Cards made up 33% of total transaction volume
- Debit Cards accounted for 30% of payment volume
- Electronic Funds Transfer was 15% of the payment volume
Canadians are increasingly adopting digital solutions due to their speed, convenience, and efficiency across a wide range of transaction types.
Image: Canada Payments 2024 Trends report figure 1
See last year's report: Insights Into Canada’s Evolving Payments Landscape
Cash Transactions
- 15% increase in cash transaction volume year-over-year
- 11% of all transactions were made in cash
- While digital payments continue to grow, cash still remains important for budgeting and managing day to day spending, and also ensuring privacy and fee-free transactions
Contactless Payments and E-commerce Boom
- 53% of all retail payments were contactless (includes both tap-to-pay cards and mobile payments)
- E-commerce transactions grew 5.5% year over year in value for a total of $71.6 billion
- Consumers have a preference for touch-free, fast, and convenient shopping experiences in both online and in-store
Prepaid Cards Fastest Growing Card Option
- 10% increase in transaction value from the previous year
- $69 average transaction value
- Convenience and speed with rewards tied to prepaid card usage
See: Feds Promise Open Banking Laws in 2024 and to Broaden Access to Payments Canada
Online Transfers Surpass Cheques
- 14% increase in the number of transactions.
- 20% increase in transaction value.
- Online transfers like Interac e-Transfer are preferred for speed, flexibility, ease of use, and security
Smart Devices and Global Payments Gain Traction
- 13% of Canadians used smart devices or social media to make purchases. Includes platforms like Alexa, Google Home, and social media sites like Instagram and Facebook
- 20% of Canadians sent money abroad, marking a 33% increase from 2022
- Average transfer value was $1,125 for personal payments sent abroad
- Canadians are becoming more comfortable using technology for sending global payments
See: New Bank of Canada Case Scenarios for Retail Payments
Generative AI Adoption by Businesses
- 49% of Canadian businesses plan to leverage AI for operational improvements
- Top AI applications include:
- 44% of businesses see AI helping with fraud detection and prevention
- 37% automated payment processing (reducing errors and improves efficiency)
- 29% aim to create personalized payment options and experiences.
Conclusion
Payments in Canada are moving towards contactless, digital, and AI-driven solutions. Traditional payment methods like cash and checks are still used in some cases, so a good mix of payment options. Canadians value a range of payment methods that offer convenience, security, and ease of use.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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