Payment Trends 2024 Report - Payments Canada

The Canadian economy depends on the exchange of billions of dollars each day. Payments Canada ensures that these financial transactions in Canada are carried out safely and securely. In 2023, Payments Canada systems cleared and settled $112 trillion or $450 billion every business day. Below is a summary from Payments Canada Annual Payment Methods Report

Section 1: Overview of Payment Processing Trends in Canada (2023)

Total Transactions:21.7 billion

Total Value:$11.9 trillion

Growth in Payment Market:

Volume Growth:6% (compared to 2022)

Value Growth:1%

Section 2: Breakdown of Payment Methods

1. Card Payments (Credit, Debit, Prepaid):

• Total Growth: 5% in both volume and value

• Credit Cards Lead:

• 51% of total transaction volume

• 72% of total transaction value

• Contactless Payments:

• Growth: Credit card contactless volume increased by 20%; Debit card contactless volume by 13%

2. Electronic Payments (EFT & Online Transfers):

• Total Growth:

• EFT:6% growth in volume, 5% in value

• Online Transfers: Volume increased by 14%; Value increased by 20%

• Usage: EFT remains a leading payment method by value alongside cheques

3. Paper Payments (Cash & Cheques):

• Volume: 10% increase in transactions (due to cash)

• Value: 10% decrease, driven by a decline in commercial cheque usage

• Cheque Usage: Declined by 6% overall, with personal cheques seeing an 18% drop

Section 3: Emerging Payment Trends

Contactless Payments:

• Usage growth across grocery stores (69%), gas stations (53%), and quick-service restaurants (44%).

E-commerce Sales:

• 2023 Share: 5.7% of total retail sales, with 57% of consumers making an online purchase monthly.

Section 4: Key Takeaways for Businesses

• Digital Growth: Online transfers and card payments dominate the landscape, with ongoing expansion in contactless and e-commerce.

• Declining Paper Usage: Cheque and cash usage continue to decline, especially in personal transactions.

• Adoption of Real-Time Payments: Prepare for the upcoming Real-Time Rail (RTR) system, promising faster and more efficient payment processing.

Understanding these key payment processing trends is essential for Canadian businesses to stay competitive and efficient. By adopting digital payment methods and preparing for real-time payment systems, companies can meet evolving consumer demands and streamline their payment workflows. If you would like to learn more about how you can make the most of your payment systems, contact www.expensedefence.com.