Canada Digital Payment Market Overview, 2029

Canada Digital Payment Market Overview, 2029

The landscape of digital payments in Canada is fast changing, with old means such as cash and debit cards under threat from innovative technology. The introduction of Interac in the 1980s paved the way for safe debit card transactions, but in recent years, there has been an increase in contactless payment methods such as mobile wallets like Apple Pay and Android Pay. Canadians are increasingly using digital payment methods, owing to simplicity, security, and the expanding popularity of e-commerce. Payment methods in Canada have evolved significantly, with a considerable trend toward digital alternatives, albeit at a slower rate than in other regions. The Bank of Canada's 2021 poll highlighted the continued prevalence of traditional payment methods, such as cash and debit cards, while also demonstrating an increasing customer preference for digital wallets. This trend gained traction with the implementation of the Real-Time Rail system in 2022, a big step toward modernising interbank transfers and improving transaction efficiency across the financial sector. As a result, Canada's payment ecosystem has seen substantial advances in speed and accessibility, setting the framework for future digitalization. The growth in e-commerce transactions in 2023 highlighted the growing demand for secure and convenient digital payment methods. Despite Canada's early lag behind the United States in digital payment usage, the gap has gradually narrowed, thanks to deliberate efforts to embrace technical improvements and match changing customer expectations. This trend is projected to continue, with Canada positioned to reduce the gap and potentially outperform its competitors in the near future.

According to the research report ""Canada Digital Payment Market Research Report, 2029,"" published by Actual Market Research, the Canada Digital Payment market was valued more than USD 7 Billion in 2023. Several factors are driving the expansion of digital payments in Canada. First, the country's increasing internet penetration improves online purchases and encourages the use of mobile wallet solutions. Furthermore, government measures such as the inauguration of the Real-Time Rail system in 2022 aim to speed up interbank transfers, hence promoting the expansion of digital transactions. Furthermore, as consumers' security concerns grow, they choose secure digital payment options over cash transactions. Despite the encouraging growth trajectory, Canada's digital payment industry is not without obstacles. Established players face intense competition from global behemoths, needing ongoing innovation to remain market relevant. Building customer trust in new payment systems is also crucial for widespread adoption, since concerns about security and reliability linger among certain populations. Furthermore, infrastructure development, notably increasing access to high-speed internet in distant locations, is critical to enabling accessible digital payment options throughout the country. Addressing these issues will be critical in determining the future of digital payments in Canada.

The provision of solutions and services in the realm of digital payments encompasses a comprehensive array of technologies and processes designed to facilitate electronic transactions, money transfers, and financial activities across digital channels such as the internet or mobile networks. These solutions are instrumental in creating an ecosystem that ensures secure, convenient, and efficient digital payments. Transactions can be categorised based on their type, with domestic payments referring to transactions conducted within a country's borders, while cross-border payments extend beyond national boundaries. Payment modes offer diverse options for users, including cards (plastic or virtual), ACH transfers, digital wallets (e-wallets or mobile wallets), and other methods like contactless payments, biometric payments, and bank transfers. These modes cater to various preferences and needs of users, ensuring flexibility and accessibility in conducting financial transactions. Moreover, digital payment solutions serve a wide range of industries and end-user verticals, including Banking, Financial Services, and Insurance (BFSI), healthcare, IT & telecom, media & entertainment, retail & ecommerce, transportation, and others. Each industry sector benefits from tailored digital payment services that streamline transactions and enhance operational efficiency. In essence, the digital payment landscape thrives on the diversity and adaptability of its solutions and services, catering to the evolving needs of users and industries alike in an increasingly digital world.

The Canadian government is supportive of digital payments, with Payments Canada in charge of regulating and developing infrastructure to facilitate innovation and security in the ecosystem. This strategy fosters an atmosphere in which new entrants can bring novel products suited to specific consumer needs. Furthermore, the thriving e-commerce sector in Canada provides fertile ground for digital payment expansion. As online purchasing becomes more popular, there is an increased demand for secure and efficient payment solutions. This trend benefits established businesses while also providing chances for newcomers to develop novel payment solutions that meet the changing needs of online consumers. Financial inclusion is another area of opportunity for the Canadian digital payment sector. The market can help to increase financial inclusion by providing more access to digital payment services, particularly for unbanked or underbanked people. Payment technology innovations and outreach activities can help bridge the divide, allowing more people to access convenient and secure financial services. This not only benefits consumers, but it also helps to boost economic growth by bringing more people into the official banking system.

In terms of pricing and segmentation, the Canadian digital payment market has a variety of pricing structures that cater to different segments. For example, Interac e-Transfer costs each transaction, whereas mobile wallets may have monthly fees. This pricing diversity meets the interests and demands of a wide range of stakeholders, including individuals, businesses, and government organisations. Individuals want simple and safe payment choices for everyday purchases, whereas businesses need efficient solutions for internet transactions and in-store payments. Government agencies hope to improve citizen services and efficiency by implementing digital payment options. This segmentation enables service providers to adjust their offers to fit the unique needs of each segment, resulting in increased adoption and use of digital payment methods across Canada. The advent of the COVID-19 pandemic triggered a major shift in payment patterns, spurring the widespread adoption of contactless transactions as consumers and companies prioritised safety and sanitation. This paradigm shift toward digital payments proved to be more than just a crisis response; it was a fundamental altering of consumer behaviours that is expected to last beyond the pandemic's aftermath. As a result, the rate of digital payment adoption in Canada has risen dramatically, driven by the need to adjust to shifting socioeconomic realities and embrace the advantages provided by digital finance.
Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Digital Payment market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Offering
• Solutions
• Services

By Transaction type
• Domestic
• Cross Border

By Payment Type
• Cards
• ACH Transfer
• Digital Wallet
• Other Payment Modes

By Vertical
• BFSI
• Healthcare
• IT & Telecom
• Media & Entertainment
• Retail & E-commerce
• Transportation
• Others

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Digital Payment industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Digital Payment market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Offering
• Solutions
• Services

By Transaction type
• Domestic
• Cross Border

By Payment Type
• Cards
• ACH Transfer
• Digital Wallet
• Other Payment Modes

By Vertical
• BFSI
• Healthcare
• IT & Telecom
• Media & Entertainment
• Retail & E-commerce
• Transportation
• Others

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Digital Payment industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.