Canadian Payments Forecast Report 2019-2020

Wednesday, 30. October 2019 12:55

Dublin, Oct. 30, 2019 (GLOBE NEWSWIRE) -- The "Canadian Payments Forecast, 2019" report has been added to ResearchAndMarkets.com's offering.

Canadian Payments Forecast, 2019 provides a detailed and insightful assessment of the prospects for the Canadian consumer payments market. It examines the Canadian consumer payments market in the context of developments in the Canadian economy and the fundamental shifts taking place in technology. Detailed five-year forecasts are developed for consumer payments and related acceptance infrastructure.

The Canadian payments landscape is undergoing fundamental changes as new technologies vie for the attention of consumers. Shopping habits are shifting as consumers embrace the convenience and functionality offered by smart phones, tablets, wearables and an almost ubiquitous internet connection. While mobile is mainstream in many areas, mobile payments are still embryonic. With unprecedented activity in the fintech space, payments in Canada are likely to be transformed within the next few years.

Credit card transactions exceed debit card transactions in 2018

The number of credit card transactions in Canada has exceeded the number of debit purchase transactions for the first time since 1997, according to the recently released Canadian Payments Forecast, 2019, published by Technology Strategies International Inc. The report estimates that 6.047 billion consumer credit card payment transactions were conducted in 2018, compared with 6.042 billion debit payment transactions. The gap between credit card transactions and debit card transactions is expected to widen over the next few years.

With the rollout of Interac debit payments in the early 1990's it was very evident that Canadian consumers embraced debit payments with vigour, and debit payment transactions overtook credit card payment transactions within a few years, says Christie Christelis, President of Technology Strategies International. Since then debit has had an almost unassailable lead, until recently.

Debit card and credit card transactions have each exceeded cash purchase transactions for the past few years, says the report. Cash's slow but steady decline illustrates the progressive substitution of cash by electronic forms of payment.

One of the factors contributing to the growth differential between credit and debit purchase transactions is that Canadian consumers are using their credit cards for lower transaction value regimes, spurred mainly by the popularity of contactless payments, Christelis says. The convenience of contactless payments has led to some substitution between debit and credit card payments.

The report notes that even though online purchases only make up about 7% of Canadian retail purchases, the high growth in online commerce has also had an impact on the increase in credit card transactions since credit cards remain the most popular payment method for online purchases.

Christelis says that mobile payments are starting to gain some traction in Canada, with the majority of in-store mobile payment transactions being undertaken using a credit card. This currently makes a very small contribution to the growth differential between credit and debit card transactions, but it will be an important battleground for Interac to win if it wants to regain some ground and position itself for the future.

Additional highlights from the study are:

  • The number of debit and credit card payment transactions accounted for more than 60% of all payment transactions on personal consumption expenditure in 2018
  • The volume of contactless payment transactions grew by 33% in 2018 and accounted for more than 25% of the combined number of debit, credit, and cash consumer payment transactions
  • Mobile has become a significant channel in the area of transfers and bill payments and is expected to command the highest share of bill payments and transfers by 2020

Key Topics Covered:

  • Executive Summary
  • Introduction and Methodology
  • The Canadian Economy
  • Prospects for Consumer Payments in Canada
    • Cash
    • Cheques
    • Debit cards
    • Credit cards
    • Contactless payments
    • Mobile payments
    • Online payments
    • Bill payments and transfers
    • Preauthorized payments
    • Prepaid cards
    • Gift cards
    • P2P payments
    • International Remittances
    • Virtual Currencies
  • Fraud
  • Consumer Payments in Perspective

Companies Mentioned

  • Amazon
  • American Express
  • Apple
  • Bank of Canada
  • Bank of Montreal (BMO)
  • Bitcoin
  • Blackberry
  • Canadian Imperial Bank of Commerce (CIBC)
  • Dash
  • Dogecoin
  • Ethereum
  • Google
  • Interac
  • Litecoin
  • MasterCard
  • Monero
  • PayPal
  • Payments Canada
  • Ripple
  • Royal Bank of Canada (RBC)
  • Samsung
  • Scotiabank
  • Starbucks
  • TD Bank
  • Uber
  • Visa
  • Western Union
  • Zcash

For more information about this report visit https://www.researchandmarkets.com/r/mf5jfq

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