Contactless Payments Surge in Canada by 17% in 2023
The adoption of contactless payments continues to rise in Canada, with 2023 seeing a 17% increase. According to a new report from Technology Strategies International, these payments now account for 63% of all in-store transactions. This shift marks a significant milestone in the way Canadians handle everyday purchases.
$80 Billion Boost in Payment Value
The total value of contactless payments skyrocketed, adding over $80 billion in just 12 months. This reflects an impressive 20% year-on-year growth, as stated in the Canadian Payments Forecast report. Consumers have increasingly embraced this faster, more convenient payment method, particularly following the COVID-19 pandemic.
Cards Still Lead, But Mobile Payments Are Catching Up
While contactless cards still dominate the scene—accounting for about three-quarters of all transactions—mobile payments are catching up quickly. In fact, the number of in-store mobile transactions increased by 42% over the past year, and they now represent 23% of all contactless payments. At the end of 2023, almost 30 million smartphones were in use across Canada, with 74% of them being NFC-enabled, allowing users to make seamless, tap-to-pay transactions.
Key Factors Driving Growth
Christie Christelis, president of Technology Strategies International, points to several factors behind the rapid adoption of contactless payments. He explains, “Almost all debit and credit payment cards are now contactless-enabled, and the penetration of contactless terminals is extremely high among Canadian merchants. Additionally, the increase in the payment limit to $250 during the pandemic has made it easier for consumers to pay for higher-priced items without entering a PIN.”
This combination of accessible technology and higher payment limits has played a crucial role in encouraging more Canadians to make contactless payments their default option for everyday transactions.
Mobile Payments: The Future of Canadian Transactions?
Despite the dominance of in-store payments, mobile transactions are becoming a significant force. In 2023, mobile bill payments and transfers represented 73.5% of all bill-related transactions. Furthermore, over half of Canadian adults now use their smartphones for online shopping, indicating that mobile payments are well on their way to becoming a mainstream method for both online and in-store purchases.
As Canada continues to embrace new technologies, the future of mobile and contactless payments looks promising. Expect even more growth in 2024 as mobile payments become more popular.