The total value of retail payment transactions in Canada rose to $12.2 trillion in 2024, marking a 3 per cent year-over-year increase in both volume and value, according to a new report from Payments Canada.
Released recently, the Canadian Payment Methods and Trends Report analyzed 22.5 billion payment transactions made last year and highlights a continued shift toward digital payment methods, with credit cards now representing one in three transactions.
Donna Kinoshita
“Canada’s payment ecosystem is more diverse, dynamic and fast-evolving than ever before, shaped by continued innovation and shifting expectations in an increasingly competitive environment,” said Donna Kinoshita, chief payments officer at Payments Canada.
Digital payments made up 86 per cent of the total payment volume and 77 per cent of payment value in 2024, while contactless payments accounted for 58 per cent of all transactions.
Credit and debit cards remained the most popular payment methods, comprising a combined 63 per cent of total payment volume. Credit cards alone accounted for 33 per cent of transactions, rising six per cent from the previous year, and reached 7.5 billion transactions with an average value of $105. The number of credit cards in circulation grew by five per cent to 112 million.
For the first time, credit cards tied with debit cards for point-of-sale volume and surpassed cheques in consumer remote payment value. Over half (54 per cent) of Canadians used credit cards to pay bills or household expenses.
However, the report noted rising financial strain among consumers, with nearly a third (32 per cent) carrying a revolving balance on their credit cards after making monthly payments. The average balance owed was $4,616.
Electronic funds transfer (EFT) led all methods in total payment value, making up 63 per cent, followed by cheques (22 per cent), credit cards (6 per cent) and online transfers (5 per cent).
E-commerce purchases totalled $77 billion, accounting for 6 per cent of retail sales. According to the report, 60 per cent of Canadians made an online purchase in a given month, with that number expected to climb as the value of online retail sales is projected to reach $96.7 billion by 2028.
“Innovations like real-time payments, consumer-driven banking, embedded finance and agentic commerce will continue to reshape the future of how Canadians make purchases and payments,” said Kinoshita. “Our research reinforces that Canadians are ready and excited to embrace the future of payments.”
The report found that mobile contactless payments grew by 28 per cent in 2024, reaching 3.4 billion transactions. Over two-thirds (68 per cent) of smartphone owners used their devices to make a payment within a six-month period.
Canadians also showed interest in emerging technologies. Twenty-eight per cent found AI-generated online shopping support appealing, and 64 per cent of business leaders reported exploring agentic AI—defined in the report as “self-thinking” artificial intelligence.
Social commerce and live commerce were also gaining ground, with 18 per cent of consumers expressing interest in making purchases directly through social media platforms, and 20 per cent interested in buying during livestream events.
Despite the growth in digital payments, cash remained in use. It accounted for 11 per cent of total payment volume, with 2.5 billion transactions and an average transaction value of $27. Nearly half (48 per cent) of Canadians used cash frequently—an average of 3.5 times per week. More than half (57 per cent) expressed no desire to go completely cashless, while only 11 per cent had already stopped using cash entirely.
Over a five-year period from 2020 to 2024, the total number of payments in Canada increased by 9 per cent in volume and 22 per cent in value. Online transfers saw the highest growth in both categories, with volume increasing by 175 per cent and value by 219 per cent.
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