Canada Mobile Payments Market Size (2024 - 2029)

Canada Mobile Payments Market Analysis

The Canada Mobile Payments Market is expected to register a CAGR of 13.28% during the forecast period.

• Mobile phones, especially smartphones, have evolved into a necessary component of a person's life as a result of the nation's economy's fast growth. Additionally, the majority of people worldwide now depend on the internet for most of their daily activities. This led to a large surge in the market for mobile payments as smartphones and internet users spread around the region.
• Many industry participants, like Starbucks, etc., use reward systems to both retain existing mobile payment service users and attract new ones. In order to facilitate transactions through their applications, several service providers, for instance, provide scratch cards that are loaded with a specific amount. Such compensation schemes encourage customers to use mobile payment apps, which boosts the market for mobile payments.
• The market for mobile payments is expected to expand over the course of the forecast period as a result of the growing popularity of M-commerce, which entails doing online business utilising wireless devices like smartphones. For instance, as contactless payments become more popular in Canada, Samsung Pay is expanding. Card issuers in Canada upped contactless transaction limits from USD 100 to USD 250 last year in an effort to promote higher usage of contactless payments as a quick and secure payment alternative. Nearly 60% of all purchases nationwide at the beginning of 2021 were made using contactless payments.
• Additionally, M-commerce enables consumers to transact anywhere there is wireless internet access. Additionally, businesses like Apple Pay and PayPal have already debuted their mobile commerce offerings. Customers can now instantly make in-store purchases without the hassle of swiping a card thanks to the introduction of digital wallets like Samsung Pay, Starbucks etc.
• The market for mobile payments is growing, but is being constrained by rising data breaches and security problems. Additionally, due to worries about security and unlawful use of personal data, many customers are hesitant to accept the new technology.
• Contactless payment transactions increased as a result of the epidemic. As more Canadians avoided handling currency and touching payment terminals at the point-of-sale, there was a 13% rise in volume in 2020 and a 10% increase in value from 2019. (POS). The availability of contactless and digital payment choices has risen, the contactless transaction limits have been raised from USD 100 to USD 250, and PayPal has introduced additional payment methods including QR codes, all of which have contributed to the expansion of contactless.
• As more Canadians switched from cash to digital and contactless payments due to the COVID-19 epidemic, paper transactions continued to fall. Both the amount and volume of cash transactions both fell by about 16% in 2020 from 2019, as stated by Payments Canada.