Canada Payment Gateway Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 1.81 Billion |
| Market Size (2029) | USD 4.87 Billion |
| CAGR (2024 - 2029) | 22.04 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Canada Payment Gateway Market Analysis
The Canada Payment Gateway Market size is estimated at USD 1.81 billion in 2024, and is expected to reach USD 4.87 billion by 2029, growing at a CAGR of 22.04% during the forecast period (2024-2029).
- The Canadian payment gateway market is witnessing robust growth, fueled by the rising embrace of digital payments, the surge in e-commerce, and the evolution of fintech solutions. Payment gateways, essential for facilitating online transactions between buyers and sellers, play a pivotal role in Canada's swiftly transforming digital landscape. With Canada's high internet penetration and a tech-savvy populace, online retail is flourishing, amplifying the demand for smooth payment solutions. Moreover, the ongoing trend towards contactless payments and the growing adoption of mobile wallets have further propelled the market.
- The growing e-commerce landscape in Canada stands as a primary catalyst for the payment gateway market's expansion. As online shopping gains traction among consumers, businesses increasingly seek efficient and secure payment solutions, driving up the demand for payment gateways.
- As mobile wallet usage and contactless payments gain momentum, platforms like Apple Pay and Google Pay are seeing heightened adoption. In response, payment gateways swiftly integrate these mobile payment options to align with the growing trend of smartphone-driven transactions.
- Canada's dynamic fintech landscape is championing technologies like artificial intelligence and blockchain, which are revolutionizing the payment process. These advancements expedite transactions and bolster security, allowing payment gateways to offer cutting-edge solutions.
- In a bid to fortify the nation's financial framework, the Canadian government is championing the adoption of digital payments. Their initiatives, aimed at modernizing payment systems and regulatory structures, have fostered a nurturing environment for payment gateways to flourish.
- Despite the surge in digital payments, challenges loom in the form of data security and fraud prevention. To uphold consumer trust and meet regulatory standards, payment gateway providers are compelled to invest in state-of-the-art encryption and fraud detection technologies.
Canada Payment Gateway Market Trends
Increased Demand for Mobile-based Payments
- Canadian consumers increasingly turn to mobile wallets and contactless payment methods, including Apple Pay, Google Pay, and Samsung Pay. As a result, businesses are now integrating these mobile payment options into their platforms. Payment gateways that facilitate mobile transactions provide users with convenience and ensure security, leading to widespread adoption, especially in sectors like e-commerce and retail.
- Mobile phones have emerged as key players in the realm of innovative payment technologies, particularly mobile payments. In Canada, smartphone ownership is notably high. Statistics Canada highlights that 84% of Canadians aged 15 and older use smartphones for personal purposes. Furthermore, mobile network accessibility spans across the nation, with nearly all Canadians, whether in urban or rural settings, able to connect, thereby bolstering the mobile payments trend.
- In Canada, the rising popularity of mobile e-commerce (m-commerce) is significantly fueling the demand for mobile-based payment solutions. With an increasing number of consumers turning to mobile apps and websites for their purchases, there's a pressing need for payment gateways to deliver secure and intuitive mobile payment processing. Consequently, this trend elevates the demand for payment gateways that ensure a seamless and secure mobile experience.
- In September 2024, SecondShop unveiled its e-commerce platform, focusing on offering premium, nearly-new home goods at substantial discounts. To bolster this venture, SecondShop garnered CAD 2 million (USD 1.47 million) in seed funding, spearheaded by Harvest Venture Partners and joined by prominent angel investors in the industry.
- As of Q2 2023, Canada boasted approximately 35.6 million mobile phone subscriptions, a rise from the 33.2 million recorded in the prior quarter, as reported by the CRTC - Canadian Radio-television and Telecommunications Commission. Most of these subscriptions encompassed both voice and data services.
Retail is expected to hold a major share
- In Canada, the retail industry has witnessed a swift surge in online shopping as consumers turn to digital platforms for their purchases. This shift has notably heightened the demand for payment gateways, especially those adept at managing high transaction volumes and supporting mobile payments and card processing.
- Retailers are adopting mobile payment solutions such as Apple Pay and Google Pay, catering to consumers' preferences for convenience. Consequently, payment gateways that facilitate seamless mobile transactions have become indispensable for the retail sector.
- In July 2024, US-based BNPL provider Affirm partnered with Canada-based retail company RONA to offer flexible online payment options to RONA's Canadian customers. Through this collaboration, RONA customers approved for the service can choose Affirm at checkout on rona.ca, allowing them to divide eligible purchases into biweekly or monthly payments over terms of up to 12 months. Customers see the total purchase cost upfront and can rest assured they won't incur any additional charges, as Affirm does not impose late or hidden fees.
- With the rise of omnichannel sales models, where retail businesses seamlessly blend physical stores with online platforms, there's an increasing demand for adaptable payment gateway solutions catering to diverse sales channels.
- As of June 2023, StatCan, the agency of the Government of Canada, reported that Canada had roughly 52,500 micro-retail trade establishments, with each employing between one and four individuals. In stark contrast, the entire nation boasted a mere 60 retail establishments that employed 500 or more people.
Canada Payment Gateway Industry Overview
The Canadian payment gateway market is witnessing robust growth, fueled by the rising embrace of e-commerce, mobile payments, and the surge in contactless transactions, a trend accelerated by the COVID-19 pandemic. Consumers increasingly gravitate toward digital wallets and mobile payment applications like PayPal, Venmo, and Cash App, which offer seamless and secure transaction experiences. Furthermore, the burgeoning fintech startup scene and the infusion of blockchain technology into payment systems are pivotal in propelling the digital payments market.
Several key factors underpin the expansion of the digital payments landscape. Firstly, digital transactions' inherent convenience and rapidity have made them the go-to choice, especially among younger consumers. Secondly, as businesses increasingly digitize, there's a heightened demand for digital payment solutions that streamline transactions and curtail costs. Lastly, the booming e-commerce sector and online marketplaces underscore the necessity for secure, efficient payment systems, especially for cross-border transactions.
The Canadian payment gateway market is fragmented, with major players like PayPal, Stripe, etc. Players in the market are adopting strategies such as partnerships and acquisitions to enhance their product offerings and gain sustainable competitive advantage.
Canada Payment Gateway Market Leaders
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PayPal Holdings, Inc.
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Interac Corporation
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Stripe
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Block, Inc.
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Moneris Solutions
*Disclaimer: Major Players sorted in no particular order
Canada Payment Gateway Market News
- April 2024: Payments Canada, in partnership with tech giants IBM and CGI, is set to unveil its Real-Time Rail (RTR) system for swift digital payments by 2026. This announcement comes after a decade-long journey marked by several delays since the initiative's inception. The RTR system is designed to enhance transaction oversight and security for Canadians, enabling real-time payments around the clock every day of the year, with swift clearance and settlement in mere seconds.
- May 2024: Intellect Design Arena Ltd, a versatile financial technology company catering to banks, credit unions, and insurance clients, has unveiled the Canada eMACH.ai Cloud tailored for banks and credit unions. This all-encompassing product suite covers areas such as digital engagement, liquidity, virtual accounts, and core banking (encompassing Payments and Deposits). With integrated AI, these offerings empower financial institutions to customize their digital services, meeting but surpassing customer expectations and driving growth. Furthermore, all products are fully operational or specifically designed for the Canadian market.
Canada Payment Gateway Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Atrractivness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Regulatory Landscape Analysis
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increased E-commerce Sales and High Internet Penetration Rate
5.1.2 Increased Demand for Mobile-based Payments
5.1.3 Growing Adoption of Payment Gateways in Retail
5.2 Market Restraints
5.2.1 Privacy and Security-related Threats Continue to Remain a Concern
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Hosted
6.1.2 Non-Hosted
6.2 By Enterprise
6.2.1 Small and Medium Enterprise (SME)
6.2.2 Large Enterprise
6.3 By End User
6.3.1 Travel
6.3.2 Retail
6.3.3 BFSI
6.3.4 Media and Entertainment
6.3.5 Other End-users
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 PayPal Holdings Inc.
7.1.2 Interac Corporation
7.1.3 Stripe
7.1.4 Block Inc.
7.1.5 Moneris Solutions
- *List Not Exhaustive
8. ANALYST RANKING OF PAYMENT GATEWAYS IN CANADA
9. INVESTMENT ANALYSIS
10. FUTURE MARKET OUTLOOK
Canada Payment Gateway Industry Segmentation
An e-commerce application service provider offers a payment gateway, a merchant service that authorizes credit card and direct payment processing. This service caters to e-businesses, online retailers, brick-and-click entities, and traditional brick-and-mortar stores.
The Canadian payment gateway market is segmented by type (hosted, non-hosted), by enterprise (small and medium enterprise (SME), large enterprise), by end-user (travel, retail, BFSI, media and entertainment, other end users), The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Type | |
| Hosted | |
| Non-Hosted |
| By Enterprise | |
| Small and Medium Enterprise (SME) | |
| Large Enterprise |
| By End User | |
| Travel | |
| Retail | |
| BFSI | |
| Media and Entertainment | |
| Other End-users |
Canada Payment Gateway Market Research FAQs
How big is the Canada Payment Gateway Market?
The Canada Payment Gateway Market size is expected to reach USD 1.81 billion in 2024 and grow at a CAGR of 22.04% to reach USD 4.87 billion by 2029.
What is the current Canada Payment Gateway Market size?
In 2024, the Canada Payment Gateway Market size is expected to reach USD 1.81 billion.
Who are the key players in Canada Payment Gateway Market?
PayPal Holdings, Inc., Interac Corporation, Stripe, Block, Inc. and Moneris Solutions are the major companies operating in the Canada Payment Gateway Market.
What years does this Canada Payment Gateway Market cover, and what was the market size in 2023?
In 2023, the Canada Payment Gateway Market size was estimated at USD 1.41 billion. The report covers the Canada Payment Gateway Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Canada Payment Gateway Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Canada Payment Gateway Industry Report
Statistics for the 2024 Canada Payment Gateway market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Canada Payment Gateway analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
