Canadian payments forecast, 2013 - news release
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Mobile Payments Gain Traction in Canada
(Oakville, Ontario – June 27, 2013) — Mobile payments are already mainstream in Canada, with more than 50% of Canadian smart phone owners having used their phones to make payments, a new study published by Technology Strategies International Inc. shows. According to the report titled Canadian Payments Forecast - 2013, the majority of mobile payments in Canada are for remote payments, including bill payment through mobile banking apps or mobile banking websites, and internet-based payments.
“The incidence of in-store payments using mobile phones is very low,” says Christie Christelis, President of Technology Strategies International, “but with the increasing penetration of contactless payment acceptance terminals, coupled with the proliferation of NFC-enabled phones, we expect that by 2017 there will be almost 3 million regular mobile payment users in Canada.”
The study found that consumer payments have grown modestly in the past year, but that all electronic forms of payment were experiencing substantial growth. The main growth drivers in the Canadian market have been increasing personal expenditure on consumer goods and services, and the increasing penetration of electronic payments into strongholds previously reserved for cash and, to a lesser extent, cheques.
“The awareness of difference contactless payment options available to consumers has jumped more than 20% in the past two years,” Christelis says. “Canadians are becoming more familiar with contactless cards as a payment option and are using it more often. As a result, contactless payments have already been effective in displacing cash transactions, and we expect this displacement to become much more significant over the next five years.”
Additional highlights from the study are:
- The P2P payments and remittances markets are growing steadily, but there is vast potential for substitution between traditional methods of payments and new electronic payments alternatives.
- Smart phone penetration is increasingly rapidly, and by 2017 more than 50% of the smart phones in Canada will be NFC-enabled.
- The prepaid card market is expected to expand rapidly, with e-gift cards becoming more popular.
- Cash will lose its position as the most frequently used form of payment in Canada over the next five years.
- Online payments will exceed $40 billion by 2017.
The 150 page report provides a comprehensive review, analysis and forecast of consumer payments in Canada. It draws on primary research conducted by TSI amongst more than 4,000 consumers in different payments segments, as well as established statistical sources. The report identifies high growth segments in the Canadian payments market in the context of some important recent developments in the economy, regulatory environment and the industry. Detailed forecasts are presented for credit card payments, debit card payments, cash payments, cheque payments, contactless payments, open-loop prepaid cards, closed-loop gift cards, P2P payments, remittances, online payments, mobile payments, bill payments and transfers, ABM installations and POS terminals.
About Technology Strategies International
Technology Strategies International is a leading Canadian technology market research firm based in Oakville, Ontario. Established in 1995, the company has been tracking developments in Canadian payment industry for the past eighteen years. For more information please see http://www.tsiglobalnet.com/research.html.
Media Contact Information:
For interviews please contact:
Technology Strategies International Inc.
Tel: +1 416 628 0796
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