editorial
Payments Canada has recently released its annual Canadian Payment Methods and Trends 2023 report, shedding light on the payment landscape in Canada. With a focus on the year 2022, the report analyzes a staggering 20.5 billion payment transactions, totaling a whopping $11.7 trillion. This means that Canadians were making payments of over $475 billion every business day.
When it comes to payment methods, credit and debit cards continue to reign supreme. The report reveals that credit cards accounted for 33 percent of all payment volumes in 2022, closely followed by debit cards at 31 percent. Electronic funds transfer took the third spot with 15 percent, while cash and online transfers accounted for 10 percent and five percent, respectively. Cheques, ABM transactions, and prepaid cards each represented two percent of the total payment volumes.
In terms of value, electronic funds transfer takes the lead, making up 59 percent of total payment value in 2022. Cheques accounted for 28 percent, while credit cards made up six percent. Debit cards and online transfers each represented three percent of the total payment value. ABM transactions, cash, and prepaid cards contributed one percent, 0.5 percent, and 0.2 percent, respectively.
The report highlights the growing popularity of online transfers, which continued to experience significant growth in 2022. Volume growth for online transfers increased by 11 percent year-over-year, while value growth amounted to 19 percent compared to 2021. Interac e-Transfer emerged as the dominant player in the online transfer payment segment, with a remarkable 61 percent of Canadians using the service to send or receive payments in any given month.
In terms of card usage, credit card volume increased by five percent, while debit card volume saw a six percent rise in 2022 compared to the previous year. The average transaction value for credit cards was $99, while for debit cards, it stood at $47.
Looking at the past five years, the report indicates that total payment volume declined by two percent. However, total payment value experienced a significant increase of 21 percent during the same period. Online transfers emerged as the fastest-growing payment type, witnessing a staggering 328 percent growth in payment volume and 314 percent growth in payment value. It is expected to surpass cash as the preferred payment method in the near future.
Within the card space, credit and prepaid cards have experienced substantial volume growth, increasing by 23 percent and 19 percent, respectively. Debit card volume also saw a notable increase of nine percent. On the other hand, cash and cheque transaction volumes declined by 59 percent and 45 percent.
Tracey Black, the President and CEO of Payments Canada, expressed her views on the report.
Follow crowdfundingmagazine on Instagram: @crowdfundingmagazine_it
