As per MRFR analysis, the Canada Contactless Payment Market Size was estimated at 1.03 (USD Billion) in 2023.The Canada Contactless Payment Market Industry is expected to grow from 1.25(USD Billion) in 2024 to 9.2 (USD Billion) by 2035.
The Canada Contactless Payment Market CAGR (growth rate) is expected to be around 19.897% during the forecast period (2025 - 2035)
The Canada Contactless Payment Market is experiencing a shift towards increased adoption driven by consumer preferences for convenience and speed in transactions. Canadian consumers are showing a strong inclination towards using mobile wallets and near-field communication (NFC) technology for payments, attributed to the growing integration of contactless payment options across various retail sectors, including grocery and convenience stores. In recent times, as part of its commitment to foster a cashless society, the Canadian government has recognized the importance of enhancing digital payment systems, especially in the aftermath of the pandemic, which has accelerated the transition away from cash.
There are significant opportunities to be explored in the contactless payment space, particularly among regions with lower adoption rates. As urban areas continue to lead in the acceptance of contactless payments, rural and remote communities may offer potential for growth and investment. Additionally, businesses can benefit from integrating loyalty programs with contactless payment systems, attracting tech-savvy consumers who appreciate an efficient shopping experience. In light of recent trends, financial institutions in Canada are developing innovative solutions to enhance security and user experience, further propelling the contactless payment ecosystem.
Canadian banks are actively working to promote contactless payment technologies, bolstering consumer trust and addressing security concerns. Merchants are also embracing solutions that facilitate seamless transitions between online and offline shopping experiences, which is becoming increasingly critical amidst evolving consumer behaviors. Overall, the landscape for contactless payments in Canada continues to evolve, influenced by technological advancements and changing user preferences.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The growing number of smartphones and improvements in mobile applications are driving the quick adoption of mobile payment technology in the Canadian contactless payment market. About 85% of Canadians owned a smartphone as of 2022, according to statistics, which supports the rising popularity of mobile wallets like Apple Pay and Google Pay. Large financial institutions like TD Bank and Royal Bank of Canada, which have made significant investments in mobile payment technologies to provide customers smooth contactless solutions, support this trend.
As a result, there has been a significant increase in contactless transactions, which rose to account for nearly 30% of all payments in 2022, reinforcing the necessity for businesses to adapt to this growing consumer preference that is expected to extend into the next decade. Such robust consumer engagement with mobile payment technologies indicates a strong growth potential for the Canada Contactless Payment Market Industry in the upcoming years.
There is a marked increase in consumer demand for convenience and speed in payment processing, which is a key driver for the Canada Contactless Payment Market Industry. According to the Canadian Bankers Association, nearly 70% of Canadians express preference for contactless payments due to their speed and efficiency compared to traditional payment methods. This is further validated by the fact that during the pandemic, contactless payments surged as consumers sought to minimize physical contact and expedite transactions.
Retailers and service providers, including grocery chains like Loblaws and Canadian Tire, have adopted contactless technology to improve customer experience, anticipating a growing shift in consumer behavior towards faster payment alternatives.
The Canadian government has been actively promoting digital payment solutions as part of its broader efforts to enhance the country's financial ecosystem. Initiatives led by the Bank of Canada, such as the Real Time Rail system, are aimed at modernizing payment infrastructure and facilitating seamless transactions across various platforms.Â
Reports illustrate that 75% of Canadians will use digital payment solutions by 2025, a direct result of government policy measures aimed at increasing digital financial inclusivity.This governmental support encourages financial institutions and technology providers to innovate and deploy contactless payment frameworks, significantly boosting the Canada Contactless Payment Market Industry.
The Canada Contactless Payment Market, encompassing the Technology segment, is experiencing transformative growth as consumers increasingly demand convenience and speed in transactions. Evolving payment technologies such as Near Field Communication (NFC) enable seamless transactions with just a tap, fostering consumer preference for quick and secure payment options. Radio Frequency Identification (RFID) is significant in streamlining inventory management and enhancing customer experience, particularly in retail environments where checkout efficiency is crucial. QR codes have gained considerable traction for mobile payments, being easily accessible and versatile, which appeals to many Canadians, especially in an environment increasingly driven by smartphone usage. Host Card Emulation (HCE) is reshaping how mobile wallets operate by allowing secure transactions without the need for physical cards, which aligns with the growing trend of digital banking and personalized payment solutions.Â
Moreover, Magnetic Secure Transmission (MST) technology provides additional versatility, facilitating contactless transactions at locations where traditional RFID or NFC systems may not yet be implemented. The steady adoption of these technologies is influenced by a variety of factors, including heightened consumer expectations for smooth and efficient interactions and businesses recognizing the importance of improving the customer experience to maintain competitive advantage. Furthermore, Canada’s robust regulatory environment aims to promote innovation while ensuring user data security, which presents a favorable landscape for advanced contactless payment solutions. Emerging trends also point towards the integration of these technologies with loyalty programs and personalized marketing strategies, thereby increasing customer engagement and retention. Overall, the focus on enhancing user experience and operational efficiency continues to drive interest and growth within the Technology segment of the Canada Contactless Payment Market.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The Canada Contactless Payment Market has been experiencing significant growth, driven by the increasing consumer preference for efficient and secure transaction methods. Payment modes within this market include Mobile Wallets, Contactless Cards, Wearables, Smartphones, and IoT Devices, each contributing uniquely to the overall ecosystem. Mobile Wallets have gained traction due to their convenience, allowing users to link bank accounts and make payments with ease. Contactless Cards remain a popular choice for in-store transactions, providing swift payment options without the need for physical cash or signatures.
Wearables, such as smartwatches, are emerging as a trendy alternative, integrating payment capabilities into everyday accessories. Furthermore, the growing adoption of Smartphones enables users to leverage near-field communication technology for seamless transactions. IoT Devices are set to revolutionize the payment landscape by eliminating barriers to payment processes, fostering a more connected and automated experience. The combination of these payment modes illustrates the diversity within the Canada Contactless Payment Market, highlighting how trends like digitization and consumer demand for speed and security are reshaping the industry landscape.
As regulatory bodies support innovation in financial technology, the market continues to evolve, paving the way for new payment solutions tailored to Canadian consumers' preferences.
The Canada Contactless Payment Market showcases a wide range of applications across various end-use sectors, significantly impacting consumer behavior and transaction efficiency. The retail sector plays a vital role in this market, as the adoption of contactless payment solutions enhances the shopping experience through faster checkouts and improved customer satisfaction. In transportation, the use of contactless payments simplifies fare collection, encouraging public transit usage and contributing to environmental sustainability by reducing reliance on physical cash.
The healthcare industry is increasingly adopting contactless payments to streamline patient transactions, improving efficiency in billing processes while enhancing patient privacy and security. Hospitality leverages contactless solutions to facilitate smoother check-ins and payments at hotels and restaurants, thereby elevating customer service. E-commerce is witnessing substantial growth as consumers prefer the convenience of quick and secure online transactions, with contactless options bolstering confidence in digital purchases. Collectively, these sectors contribute significantly to the Canada Contactless Payment Market dynamics, driven by technological advancements, changing consumer preferences, and the overall shift towards cashless transactions in the country.
The Canada Contactless Payment Market is diversely segmented by Transaction Type, showcasing the dynamic nature of consumer payment preferences in the region. In-Store Transactions account for a significant portion of the market, driven by the growing adoption of tap-and-go technology among retailers, catering to the fast-paced shopping environment. Remote Transactions have gained traction due to the rising e-commerce landscape in Canada, emphasizing convenience and efficiency for online buyers. Peer-to-Peer Transactions facilitate seamless money transfers among individuals, reflecting a shift towards digital wallets and mobile banking solutions.
Bill Payments also play a crucial role by enabling users to settle bills effortlessly, demonstrating the increasing need for quick and secure payment options. Collectively, these transaction types illustrate not only the evolving landscape of the Canada Contactless Payment Market but also the strong consumer demand for innovative payment solutions. As contactless technologies continue to advance, various transaction types will contribute to shaping the industry's growth trajectory, influenced by changing consumer behaviors and digital trends. Hence, understanding the Canada Contactless Payment Market segmentation provides valuable insights into its structure, revealing key drivers for market expansion and innovation.
The Canada Contactless Payment Market is characterized by its rapid evolution and the progressive adoption of digital payment technologies that provide increased convenience and security for consumers and merchants alike. As contactless payments gain popularity, driven by consumer demand for faster transaction methods, various companies are vying for a dominant position in this burgeoning sector. Competitors include traditional banks, fintech companies, and payment solution providers, all of whom are innovating to enhance customer experience and streamline payment processes. The competitive landscape is continuously shifting, influenced by advancements in technology, regulatory changes, and consumer preferences, pushing participants to adapt their strategies and offerings to capture market share while responding to challenges such as cybersecurity threats and interoperability issues among payment systems.
Adyen has established a significant presence in the Canada Contactless Payment Market by providing a seamless and efficient platform that supports multiple payment methods, including credit cards, digital wallets, and local payment options. The company’s strengths lie in its robust infrastructure, which integrates various payment channels into a single platform, allowing merchants to manage all transactions effectively. This capability not only enhances the user experience but also allows businesses to analyze their transactions in real time, thus making data-driven decisions. Adyen's commitment to innovation and scalability enables it to cater to a wide range of businesses, from small enterprises to large corporations, setting it apart from competitors. Furthermore, its focus on improving security measures surrounding contactless payments helps build trust among users, a crucial factor in the current landscape.CIBC plays a pivotal role in the Canada Contactless Payment Market, leveraging its extensive banking network to offer a variety of payment services tailored for both consumers and businesses.Â
The bank's key offerings include mobile banking solutions, contactless debit and credit cards, and integrated payment processing services that cater to the needs of merchants. CIBC's strengths are rooted in its strong brand image, customer loyalty, and its ability to provide comprehensive financial services alongside contactless payment solutions. Recent mergers and acquisitions have further solidified its market presence, allowing the organization to enhance its technological capabilities and broaden its service offerings. These strategic moves enable CIBC to compete effectively by introducing innovative payment solutions that appeal to tech-savvy consumers while also ensuring compliance with regulatory standards, thus maintaining its reputation as a reliable financial institution in Canada’s evolving payment landscape.
The Canada Contactless Payment Market has experienced significant advancements and growth in recent months. In September 2023, Visa announced the expansion of its Contactless Payment technology, targeting enhanced security measures to bolster consumer trust. Concurrently, CIBC and Apple have fortified their partnership, making Apple Pay a preferred method across CIBC's client base, aligning with the increasing demand for seamless transactions. Additionally, PayPal launched its innovative touchless payment solutions in multiple Canadian cities, aiming to enhance user experience.
On the merger and acquisition front, in August 2023, American Express acquired a fintech startup focusing on contactless payment solutions, a move anticipated to enhance its offering in Canada. The Contactless Payment Market in Canada saw a growth rate of approximately 25% over the last two years, as more retailers adopted digital payment systems, reflecting the evolving consumer behavior. Interac has also reported an increase in the usage of their contactless services as Canadians shift towards more hygienic payment methods amidst ongoing health considerations. Major companies like Mastercard, Samsung, and Square continue to innovate to maintain competitive advantages in this dynamic market environment.
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2018 | 1.03(USD Billion) |
| MARKET SIZE 2024 | 1.25(USD Billion) |
| MARKET SIZE 2035 | 9.2(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 19.897% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Billion |
| KEY COMPANIES PROFILED | Adyen, CIBC, American Express, Visa, Apple, PayPal, Samsung, Square, Interac, Mastercard, Google, BMO, RBC, Stripe, TD Bank |
| SEGMENTS COVERED | Technology, Payment Mode, End Use, Transaction Type |
| KEY MARKET OPPORTUNITIES | Mobile wallet adoption increase, Contactless transit payment expansion, Integration with IoT devices, Rise in e-commerce transactions, Enhanced security features development |
| KEY MARKET DYNAMICS | Rapid adoption of mobile wallets, Increasing consumer preference for convenience, Enhanced security measures and technology, Growing digital payment infrastructure, Rising contactless card transactions |
| COUNTRIES COVERED | Canada |
Frequently Asked Questions (FAQ) :
The Canada Contactless Payment Market is expected to be valued at 1.25 billion USD in 2024.
By 2035, the Canada Contactless Payment Market is projected to reach approximately 9.2 billion USD.
The expected CAGR for the Canada Contactless Payment Market from 2025 to 2035 is 19.897 percent.
The NFC technology segment is forecasted to dominate the Canada Contactless Payment Market with a value of 3.75 billion USD by 2035.
The market value for RFID technology in the Canada Contactless Payment Market is expected to be 0.3 billion USD in 2024 and 2.4 billion USD by 2035.
Major players in the Canada Contactless Payment Market include Adyen, CIBC, American Express, Visa, Apple, PayPal, Samsung, Square, Interac, Mastercard, Google, BMO, RBC, Stripe, and TD Bank.
The market value for QR Code technology in the Canada Contactless Payment Market is expected to be 0.25 billion USD in 2024.
Technologies like NFC, RFID, and QR Code are expected to grow significantly, with NFC projected to reach 3.75 billion USD, RFID 2.4 billion USD, and QR Code 1.9 billion USD by 2035.
Challenges may include cybersecurity risks, regulatory compliance, and consumer adoption rates, which could affect market growth in the coming years.
Shifts in consumer preferences towards convenience and speed in transactions are driving the growth of the Canada Contactless Payment Market.
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Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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