Canada reaches $12.2 trillion in payment transactions in 2024, with credit cards accounting for 1 in 3 transactions

Key report highlights:

• Digital payments represented 86% of total payment volume and 77% of total payment value.
• Contactless payments accounted for 58% of transactions.
• E-commerce transactions totalled $77 billion, representing 6% of retail sales.
• 13% of Canadians used smart home devices or social media for purchases in any given month.
• Number of credit cards in circulation reached 112 million, a 5% increase year-over-year.
• More than a quarter (28%) of Canadians find AI-generated online shopping support appealing.
• 64% of business leaders are exploring agentic AI, a form of 'self-thinking' artificial intelligence.

OTTAWA, ON, Oct. 2, 2025 /CNW/ - Payments Canada today released its annual Canadian Payment Methods and Trends Report, which analyzes the 22.5 billion retail payment transactions made in 2024, totalling $12.2 trillion. The report reveals that the Canadian payment market grew by 3% in both volume and value from 2023 to 2024, and explores payment behaviours and innovations that are evolving how Canadians make transactions.

"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. "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. Our research reinforces that Canadians are ready and excited to embrace the future of payments."

Key year-over-year payment method trends (2023-2024):

Credit and debit card usage led payment volume. Credit and debit cards remained Canadians' payment methods of choice. Combined, credit cards (33%) and debit cards (30%) made up 63% of total payment volume. Electronic funds transfer (EFT) represented 14% of payment volume, followed by cash (11%), online transfer (7%), cheque and prepaid cards (both at 2%) and automated banking machine (ABM) (1%).

Electronic funds transfer (EFT) led payment value. EFT represented 63% of the total payment value, followed by cheques (22%), credit cards (6%), online transfer (5%), debit (2%), cash and ABM (both at 1%).

Credit cards represented 1 in 3 payments. Credit cards represented 7.5 billion transactions — a 6% increase — with an average transaction value of $105. The number of credit cards in circulation increased by 5% to 112 million. Over half of Canadians (54%) used their credit card to pay a bill or household expense. For the first time ever, credit cards tied with debit cards for point of sale volume, and surpassed cheques in value for consumer remote payments.

More Canadians defaulted on credit card payments and revolving balances. A combination of economic factors led to a higher rate of delinquencies, charge-offs and revolving balances. Nearly a third (32%) of Canadians carried a revolving balance after making monthly payments against their credit card balances, owing an average balance of $4,616.

The Canadian Payment Methods and Trends report reveals how payment innovation has evolved purchasing behaviours and preferences:

E-commerce accounted for 6% of total retail sales in 2024. 60% of Canadians made an online purchase in any given month. By 2028, the value of online purchases is expected to reach $96.7 billion, representing 10.5% of total retail sales.

More than a quarter of Canadians are interested in AI-enhanced shopping experiences.
AI-enhanced shopping experiences, like AI agents with capabilities to search, compare and complete purchases on a shopper's behalf, appeal to 28% of Canadians. Nearly four in ten young Canadians (aged 18-34) are interested in this type of service.

One in five Canadians finds purchasing products on livestreams appealing. Social commerce (making purchases directly through social media platforms) and live commerce (making purchases during live-streaming events) appeal to 18% and 20% of consumers, respectively.

Mobile contactless payments grew by 28%. Over two-thirds (68%) of Canadian smartphone owners made a payment using their smartphone in a given six-month period. Mobile contactless payment volume increased to 3.4 billion (up 28% from 2023) and is expected to reach 5.7 billion by 2028 (representing a 66% increase).

Contactless payments accounted for more than half of all transactions. Thirteen billion transactions were contactless (up 11% from 2023), driven in part by the increase in smartphones that support near field communication (NFC) technology, which enables secure transactions by connecting to electronic devices within a short range.

Canadians largely do not want a cashless future: Cash represented 2.5 billion transactions — 11% of total payment volume — with an average transaction value of $27. Despite the longer-term decline in cash, nearly half (48%) of Canadians frequently used it, averaging 3.5 times a week. More than half (57%) of Canadians have no desire to go completely cashless, and only 11% of Canadians have already gone cashless.

Key five-year payment method trends (2020-2024):
Canadian payments grew 9% in volume and 22% in value, reaching 22.5 billion transactions worth $12.2 trillion.

Growth and trends among payment methods over the past five years:

• Online transfers led growth in volume and value at 175% and 219%, respectively.
• Credit cards led all other payment cards in growth, increasing by 14% in volume and 32% in value.
• Prepaid cards ranked second behind credit cards in growth, increasing by 13% in volume and 31% in value.
• EFT value continues to rise, increasing by 48%.
• Cheque value continues to fall, declining by -24%.

All percentage changes reported in this press release are based on an average annual percentage change calculation unless otherwise stated.

Download the full study and fact sheet.

About the study. Payments Canada worked with payment service providers, payment consultants and researchers to compile a comprehensive 2024 data set and provide insights into how Canadian consumers and businesses pay, combining industry data and market research. Industry data is derived primarily from the Automated Clearing Settlement System (ACSS) data, industry payment card usage data and quantitative and qualitative market research sources. Data is also collected from payment service providers and payment networks. Survey research is used to fill data gaps and provide detailed insights. Lynx transactions are excluded to avoid double-counting, as the payment volume and value information are derived from the clearing data.

About Payments Canada. Payments Canada makes payments easier, smarter and safer for people living in Canada by providing secure and resilient national infrastructure where payments are cleared and settled between financial institutions. We are a public purpose organization that owns and operates Canada's payment systems, Lynx, the Automated Clearing Settlement System (ACSS) and the forthcoming Real-Time Rail (RTR), and are responsible for the by-laws, rules and standards that support these systems. In 2024, our systems cleared and settled $107 trillion — more than $424 billion every business day. Some of the transactions that pass through our systems include debit card payments, pre-authorized debits, direct deposits, bill payments, wire payments and cheques. Payments are an essential part of our economy and way of life. From a down payment on a home, an invoice paid to a local business or a first paycheque — payments keep Canadians and the economy moving forward. For media inquiries, please visit Payments Canada's media centre.

SOURCE Payments Canada