The report, published by Technology Strategies International, reveals that the value of contactless payments transactions increased by about USD 30 billion in 2015, on the back of more than 1.2 billion transactions. Furthermore, Canadians are using their contactless payment cards nearly three times a month, on average, and expect contactless POS terminals to be ubiquitous.
The rapid uptake of contactless payments amongst consumers will make the switch to mobile contactless payments. Apple Pay’s recent announcement that it will work with major banks in Canada to bring mobile payments to market for iPhone users is expected to have an impact on the market.
The report predicts that the mobile payments landscape in Canada will change dramatically within the next five years, with more than three quarters of the smartphones in Canada having NFC capability by 2020, and major financial institutions and other key players releasing mobile wallets and applications that are more in line with consumer needs than the current offerings.
Additional highlights from the study are: debit and credit card payments accounted for more than 60% of personal consumption expenditure in 2015. These transactions will exceed cash transactions in 2016 and 2020 respectively. Cash usage is declining, but at a relatively low rate. Smartphone penetration is likely to reach 90% by 2020. Online payments continue to experience high growth. The usage of Bitcoin has doubled since 2015.
Technology Strategies International is a Canadian technology market research firm based in Oakville, Ontario.
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