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Canada is rapidly transitioning towards a cashless society, with digital payments becoming the norm for consumers and businesses alike. At the forefront of this transformation is Interac, the country's (not-for-profit) debit network, which has played a pivotal role in shaping Canada's digital payment landscape.​

The Rise of Digital Payments

In 2023, Canadians conducted 21.7 billion retail payment transactions totalling $11.9 trillion, marking a 6% increase in volume year-over-year. Digital payments accounted for 86% of total payment volume and 75% of total payment value, highlighting the nation's shift away from cash. ​

Contactless payments have seen significant growth, representing 63% of all in-store transactions in 2023—a 17% increase from the previous year. The total value of contactless payments grew by over $80 billion, driven by widespread availability of contactless-enabled cards and increased merchant adoption. ​

Interac's Pivotal Role

Interac has been instrumental in Canada's digital payment evolution. Between August 2022 and July 2023, Interac recorded over one billion mobile debit transactions—a 53% increase year-over-year. This surge reflects Canadians' growing preference for using mobile devices for everyday purchases. 

The Interac Token Service Provider (TSP) enhances security by allowing transactions without exposing financial information, reducing fraud risk and simplifying the payment process. ​

Generational Influence and Mobile Adoption

Younger Canadians are leading the charge in adopting mobile payments. A recent Interac survey found that 78% of Gen Z adults use their smartphones for payments, influencing older generations to follow suit. Nearly two-thirds of Canadians believe that soon, carrying a physical wallet will be unnecessary, as mobile devices can handle all payment needs. ​

As digital payment methods continue to evolve, Canada's financial ecosystem is poised for further innovation. With Interac at the helm, the nation is well-positioned to embrace a future where convenience, security, and efficiency define the payment experience.​

Get in touch to find out more about our Canada Interac solution.