On September 29, 2021, Payments Canada published its annual Payment Methods and Trends report, analyzing 20 billion payment transactions made in 2020, totalling $9.4 trillion. The year 2020 was marked by the COVID-19 pandemic which influenced a shift in payment behaviours to digital and contactless payments, accelerating the decline in cash usage.
Electronic payments rose to 79% of all transactions
Contactless payments increased 13%
Nearly half of Canadians reported making payments on e-commerce platforms, helping push growth in E-commerce payments up 13% in volume
Online transfers rose 48% in volume
Credit, Debit and cash remain the top three payment methods by volume however their use declined compared to previous years
In terms of total value amounts, electronic fund transfers (EFT) and cheques remain the top payment methods.
From a small and medium enterprise perspective, EFT, credit cards and cheque were preferred methods of payments.
EFT represented 25% of total payment value, followed by credit cards at 24% and cheques at 17% of total business expenditure