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.

Key trends

• 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