Online transfers and credit cards continue to be the preferred payment methods for Canadians, who, on the contrary, forego cash and checks, according to a study released Thursday by Payments Canada.
The study shows Canadians made 20.5 billion payment transactions in 2022, with a total value of $11.7 trillion. Although total payment volume fell by 2% compared to 2017, the value of total payments increased by 21% over the same period.
Canadians were more likely to use debit and credit cards, accounting for 31% and 33% of total payment volume, respectively, in 2022.
On the contrary, the volume of cash and check transactions decreased by 59% and 45%, respectively, in 2022 compared to 2017.
“This trend reflects a continued migration from personal and business checks to digital payments such as electronic funds transfers (EFTs) and online transfers. The traditional use of checks (…) is being replaced by digital payments, which are considered convenient, fast, secure and more cost-effective,” explained Payments Canada.
Overall, online transfers make up a small proportion of the total payment volume (5%). However, the volume and value of online transfer transactions experienced the strongest growth across all payment methods over the past five years (328% and 314%, respectively), and this trend is expected to continue over the next five years.