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Canada Real Time Payments Market Size (2024 - 2029)

The Canadian real-time payment market is poised for significant expansion, driven by the increasing adoption of the e-commerce economy and online transactions. Despite the historical dominance of payment cards, the shift towards electronic payments has been bolstered by the participation of numerous financial institutions and the development of advanced systems like Real-Time Rail. This evolution in payment methods is expected to enhance the market's scope, offering consumers and businesses improved transaction efficiency and reduced costs.

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Market Size of Canada Real Time Payments Industry

Canada Real-time Payments Market Size
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 8.12 %
Market Concentration Medium

Major Players

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*Disclaimer: Major Players sorted in no particular order

Canada Real-Time Payments Market Analysis

The Canadian real-time payment market is expected to significantly grow 8.12% from 2022-2027. The reason for such change is the back growing adoption of the e-commerce economy and online transactions in Canada

  • Real-time payments have been available in Canada since Interac e-Transfer in 2002. The adoption and use of real-time payments steadily gained traction over the last few years, thanks to the wider participation by more than 250 financial institutions as of December 2021 and a continued preference for electronic payments among consumers.
  • However, real-time payments still accounted for a smaller share of 4.9% in volume in 2021, compared to 77% of the non-instant electronic payments. This is due tcountry'sntry's high adoption and usage of payment cards. The increased contactless payments limit amid the COVID-19 outbreak has pushed their use for day-to-day, low-value transactions.
  • Meanwhile, Payments Canada is developing a new and advanced real-time payments system known as Real-Time Rail (RTR), which is expected to go live in 2022. The launch of this new system is anticipated to accelerate real-time payments growth over the next few years.
  • Net benefits of real-time payments for consumers and businesses hit $204 million in 2021, mainly due to the reduction of failed transactions, contributing to half of these savings ($102 million). Failed transactions generate an associated annual cost of $118.5 billion globally, borne by financial institutions, consumers, and other businesses across the globe.
  • Consumers expect merchants and businesses to provide payment options to meet their preferences, whether at the point of sale, for online purchases, or to pay their bills and taxes. Speed, security, convenience, traceability, and payment options are all key factors that iCanadians'dians' payments experience - and that can make the difference between a frictionless experience and creating frustration.

Canada Real-Time Payments Industry Segmentation

Real-time payments are instant or immediate payments and are defined by the Euro Retail Payments Board (ERPB) as electronic retail payment solutions that are available 24/7/365. Immediate payments enable businesses and consumers to make and receive payments in real-time, providing convenience, speed, and faster availability of funds.

The Canadian real-time payments market is Segmented by Transaction Types (P2B, B2B, and P2P)

By Type of Payment
P2P
P2B
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Canada Real Time Payments Market Size Summary

The Canadian real-time payments market is poised for substantial growth, driven by the increasing adoption of e-commerce and online transactions. Since the introduction of Interac e-Transfer in 2002, real-time payments have gained momentum, supported by the participation of over 250 financial institutions and a consumer shift towards electronic payments. Despite this growth, real-time payments still represent a smaller portion of the total payment volume, largely due to the country's strong preference for payment cards and the rise of contactless payments during the COVID-19 pandemic. The development of Payments Canada's Real-Time Rail system is expected to further accelerate this growth, enhancing the speed, security, and convenience of transactions for both consumers and businesses.

The Canadian payments landscape is evolving, with bank-to-bank transfers via Interac remaining the primary method, while peer-to-peer payment platforms like Square's Cash App and PayPal's Venmo are gaining traction. As digitalization permeates more aspects of daily life, the volume and value of online transfers and e-commerce payments continue to rise, a trend accelerated by the pandemic. Businesses have increasingly shifted to e-commerce platforms, expanding online shopping options for consumers. The market is moderately concentrated, with companies like Mastercard and Mogo innovating to maintain a competitive edge. The integration of digital assets and the introduction of services like Apple Pay Later highlight the ongoing transformation and diversification within the Canadian real-time payments market.

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Canada Real Time Payments Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Attractiveness-Porter's Five Forces Analysis

      1. 1.2.1 Bargaining Power of Suppliers

      2. 1.2.2 Bargaining Power of Buyers/Consumers

      3. 1.2.3 Threat of New Entrants

      4. 1.2.4 Threat of Substitute Products

      5. 1.2.5 Intensity of Competitive Rivalry

    3. 1.3 Evolution of the payments landscape in the Canada

    4. 1.4 Key market trends pertaining to the growth of cashless transaction in the Canada

    5. 1.5 Impact of COVID-19 on the payments market in the Canada

  2. 2. Market Segmentation

    1. 2.1 By Type of Payment

      1. 2.1.1 P2P

      2. 2.1.2 P2B

Canada Real Time Payments Market Size FAQs

The Canada Real Time Payments Market is projected to register a CAGR of 8.12% during the forecast period (2024-2029)

Google LLC (Google Pay), Apple Inc.​ (Apple Pay), Samsung Electronics Limited (Samsung Pay), Mastercard Inc.​ and VISA Inc.​ are the major companies operating in the Canada Real Time Payments Market.

Canada Real Time Payments Report Snapshots

Canada Real Time Payments Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)