When it comes to payments in Canada, Canadians like to have options. According to the latest Canadian Payment Methods and Trends report by Payments Canada, most consumers use multiple payment methods for different types of purchases. For instance, someone might use a credit card to buy the latest Labubu in the morning and switch to Interac e-Transfer^Ⓡ to pay a bill later that evening. This behaviour highlights why businesses should offer a variety of payment options, making it easier to turn browsers into buyers.

Here are the key takeaways from the report for businesses:

1. Cards Continue to Dominate Consumer Payments:

• Credit and debit cards together represented 63% of all payment volume in 2024, remaining the most frequent way Canadians pay both in-store and online.
• Credit card use grew 6% by volume and 5% by value over the past year, with contactless credit card payments soaring 14% in volume and 19% in value.
• Debit card payments increased 1% in volume, remained flat in value, signaling steady use for everyday purchases.
• Prepaid cards also saw growth: 5% increase in volume, 8% in value.

2. Online Transfers: The Fastest Growing Payment Type

• Online transfers (including Interac e-Transfer and PayPal) volume rose 16% year-over-year, with value up 23%.
• 1.4 billion Interac e-Transfer transactions were sent in 2024 (up 17%), worth $563 billion (+23%).
• Average monthly Interac e-Transfer per user volume increased 6% to 38 transactions.
• PayPal transfers also grew, recording 63 million transactions (+8%) valued at $5.5 billion (+13%).

3. EFT: The Backbone for Large-Value and Business Payments

• EFT (Electronic Funds Transfer) maintained its status as the largest payment method by value, processing $7.6 trillion in 2024 (+6% from 2023).
• Transaction volume increased slightly (up 1% to 3.2 billion).
• Most common business payments made by EFT: payroll, supplier/vendor payments, bills, and government remittances.
• Average EFT payment: $2,390, up 5% from 2023.

4. Cash & Cheques: Decline Continues, But Not Dead Yet

• Cash usage dropped another 2% in volume (2.5 billion transactions), while value edged down less than 1%.
• Cheques declined sharply: 10% drop in volume (340 million), 5% in value ($2.7 trillion).
• Cheques are still used for rent, large-value transactions, and gifts—but 57% of businesses say they'll move away from cheques entirely in the next two years.

5. Contactless & Mobile Payments Reach New Highs

• Contactless payments climbed 11% to reach 13 billion transactions—driven largely by credit cards (up 14%) and debit cards (up 7%).
• In-store mobile payments were up 28% to 3.4 billion—now making up 26% of all contactless payments.
• 68% of Canadians used their smartphone for a payment at least once in the past six months.

6. eCommerce and Remote Payments Remain Hot

• eCommerce now accounts for 6% of total retail sales.
• Credit cards dominate online shopping (55% of purchases), followed by PayPal (19%) and debit cards (20%).
• Online and mobile wallet adoption shows steady growth, matching broader trends in contactless and real-time payments.

7. Real-Time Rail (RTR) and Real-Time Payments: What’s Next

• Readiness for real-time payment adoption is high: over one-third of Canadians are eager for RTR and real-time services as the system enters its final testing before launch.

So, in short, for businesses looking to grow or strengthen their position, the cheat code is right in front of you: better payment solutions. When you modernize payment acceptance and offer customers more choice, you can reach more Canadians and improve conversion. Understanding your audience and their payment habits is key to growth. With the real-time rail on its way and open banking advancing, Canada is set to enter a new payment era in 2026.