The number of contactless payments in Canada saw a 17% increase in 2023, making up 63% of all in-store transactions.
According to the Canadian Payments Forecast from Technology Strategies International, the value of contactless payments rose by over $80 billion in the past year, reflecting a year-on-year growth of 20%. While cards constitute three-quarters of contactless payment transactions, the adoption of smartphone and wearable payment options has significantly increased. By the end of 2023, nearly 30 million smartphones were in use in Canada, with 74% equipped with NFC technology. In-store mobile transactions surged by 42% this year, accounting for approximately 23% of all contactless payments.
Christie Christelis, president of Technology Strategies International, notes that several factors have contributed to the remarkable growth of contactless payments in Canada over the past decade. “Almost all debit and credit payment cards can now be used for contactless payments, and the availability of contactless payment terminals among merchants is widespread. Additionally, the increase in the contactless payment limit to $250 during the Covid pandemic has enabled consumers to purchase higher-ticket items without needing to enter a PIN.”
Though in-store payments comprise nearly 90% of all consumer transactions in Canada and cards remain the dominant payment method, mobile payments are becoming increasingly relevant. In 2023, mobile bill payments and transfers accounted for 73.5% of all such transactions, and over 50% of adult Canadians reported using their smartphones for online shopping.