Market Trends of Canada Mobile Payments Industry
This section covers the major market trends shaping the Canada Mobile Payments Market according to our research experts:
Mobile Payments is Expected to have Significant Growth in Canada
- Payments Canada reports that customers with higher incomes also often use tap and pay to make transactions and that in 2021, 32% of Canadians frequently used their mobile debit cards, with the majority of those users being from younger age groups. Contactless use is expected to increase as millennials, and Gen Z consumers mature.
- A 2021 payments trends during COVID-19 survey by Payments Canada found that 42% of Canadians believe the epidemic has permanently affected their preference for digital and contactless payments.
- The Canadian economy has grown, and its productivity has increased thanks to advances in payment technology. Banks in Canada have made significant investments in Payment Canada's effort to modernize payments, including the Real-time Rail, enabling Canadians to send and receive money 24 hours a day, seven days a week, in only a few seconds. The high-value payment system, which forms the foundation of Canada's financial market infrastructure, has also received investment.
- Currently, e-Transfers are a quick and efficient method of sending money. However, the new Real-Time Rail system, set to launch in 2022, will allow more real-time payments than e-Transfer currently does.
- According to the Bank of Canada survey on the multiple choice payment methods used in August 2021, 62% of respondents chose cash, 62% chose debit card, 76% chose credit card, 42% chose Interac e-Transfer, 17% chose mobile, and 10% chose prepaid card.
Understand The Key Trends Shaping This Market
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Rise in Smartphones Utilization to Drive the Market
- Since the COVID-19 outbreak began, 40% of Canadians have used their mobile wallets more frequently to make shop transactions. This was primarily because of their belief that contactless payments allayed worries about COVID-19 transmission.
- Further, along with switching from cash to contactless cards, many Canadians started utilizing mobile payments in stores for the first time or more frequently than they had before the epidemic, as well as Interac e Transfer for peer-to-peer (P2P) payments more frequently. Businesses upgraded their POS payment terminals to start making contactless payments (9%) and moved all or part of their company online as a result of changes in consumer payment behavior (11%). In response to rising consumer use, businesses also accepted Interac e-Transfer payments more frequently (37%).
- The advantages of mobile payments that influence Canadians to choose mobile as a source of payments include a convenient way to pay, a secure way to pay, a faster way to pay, more locations to spend, and always being able to pay.
- For instance, as per App Annie mobile report 2022, About USD 2.77 billion, consumers spend on mobile apps and in-app purchases annually. This is around a 25% YoY change in consumer spending on apps and in-app purchases compared to the previous year 2021.
- Furthermore, as per World Bank Data 2021, Canadian adults aged above 15 as a sample, out of which 97.9% made or received digital payments, 68.6% made a purchase on the internet, 69.6% used online banking, 72.1% used the internet to pay bills. Such instances provide the support to grow the mobile payments market in Canada.
