Canadian payment transactions totalled $12.9 trillion in 2025, up 5.7 per cent from the previous year, as credit and debit cards maintained their dominance and more than half of Canadians expressed interest in real-time payments, according to a new report from Payments Canada.
The organization’s annual Canadian Payment Methods and Trends report, examined 26.7 billion retail payment transactions last year and outlined changes in how consumers and businesses pay, including growth in contactless transactions, online transfers and the use of cryptocurrency among younger Canadians.
The findings come ahead of the planned fourth-quarter 2026 launch of Canada’s Real-Time Rail (RTR), a payment system designed to allow Canadians to send and receive payments instantly at any time of day.
“Our research shows that when it comes to payments, Canadians want speed, convenience, safety, choice and control — it’s what consumers and businesses have come to expect, and what Canada needs to remain competitive on the global stage,” said Donna Kinoshita, chief payments officer at Payments Canada. “With the launch of Canada’s Real-Time Rail in Q4 2026, we’re enabling the payment ecosystem to meet these needs by delivering the necessary foundation to unlock innovation, choice and growth across the market.”
Cards dominate transaction volume
Credit and debit cards accounted for 68 per cent of total payment volume in 2025, up from 63 per cent five years earlier, the report found. Credit cards represented 43 per cent of transactions, while debit cards accounted for 25 per cent.
Credit card transactions increased seven per cent year over year to 11.6 billion, with their total value rising five per cent to $1.02 trillion.
Electronic funds transfers (EFTs), meanwhile, accounted for the largest share of payment value at 63 per cent. Cheques represented 20 per cent, followed by credit cards at eight per cent, online transfers at five per cent and debit cards at two per cent. Cash and automated banking machine transactions each accounted for one per cent of payment value.
Over the five years to 2025, online transfers recorded the largest increase in transaction volume, rising 110 per cent, followed by credit cards at 75 per cent. EFT value increased 59 per cent over the same period, while cheque value declined 16 per cent.
Cash transaction volume rose five per cent over five years, which the report described as reflecting a post-pandemic reset in usage patterns.
Real-time payments expected to expand business options
The report found that 52 per cent of Canadians consider real-time payments appealing, with speed and convenience identified as key drivers of interest.
For businesses, the proposed system could support faster payments to gig workers, immediate loan funding and quicker settlements with suppliers. Payments Canada said 37 per cent of small and medium-sized enterprises identify payment delays as a significant problem.
Instant settlement could help businesses manage cash flow, improve forecasting and reduce chargeback risk, while faster supplier payments could provide greater certainty around payment timing, according to the report.
Susan E. Hawkins, president and chief executive officer of Payments Canada, said the system could have broader economic implications as businesses and consumers adopt new payment options.
"Canada's Real-Time Rail holds the potential to positively transform Canada's economy, driving billions in economic gains and helping to enable long-term national prosperity," said Hawkins. "In laying this foundational infrastructure, Payments Canada, its members, partners and regulatory leaders are equipping Canada to innovate and grow. This is the start line, not the finish line. The RTR's true potential is within our collective reach, and we must continue to build on it."
The report projects the RTR will generate between $5.3 billion and $14.5 billion in cost savings over 10 years, alongside $16 billion in total economic gains. Those gains could reach $27 billion as additional capabilities are introduced, including earned wage access, person-to-person transfers and insurance disbursements.
Online shopping and contactless payments grow
E-commerce accounted for 6.1 per cent of total retail sales in 2025, with 58 per cent of Canadians making an online purchase in a typical month. The proportion of online shoppers paying by credit card rose to 61 per cent, an 11 per cent increase from 2024.
Buy now, pay later services also continued to gain traction. The report found that 17 per cent of businesses offer the payment option, while 26 per cent of Canadians said they had used it. Among Canadians aged 18 to 34, 39 per cent used the service for a purchase in 2025.
Contactless payment volume increased nine per cent year over year, driven largely by a 12 per cent rise in contactless credit card payments. Grocery stores and supermarkets accounted for 62 per cent of contactless transactions, followed by gas stations at 44 per cent and restaurants and bars at 39 per cent.
Public transit recorded the largest increase in contactless payment use. The share of Canadians using tap payments on transit rose eight percentage points from 2024 to 14 per cent as more jurisdictions began accepting credit and debit cards on transit systems.
Younger Canadians lead cryptocurrency payment growth
Cryptocurrency use for payments remained relatively limited but increased in 2025. The proportion of Canadians who had used cryptocurrency to make payments rose to five per cent from three per cent a year earlier.
Among Canadians aged 18 to 34, the proportion more than doubled to 10 per cent from four per cent in 2024. Respondents cited greater privacy or anonymity, quicker transactions and lower transaction fees as the leading reasons for using cryptocurrency.
The report also found limited enthusiasm for agentic commerce, in which artificial intelligence tools could help consumers research products and complete purchases. Only 24 per cent of Canadians found the approach appealing, while 43 per cent said they did not.
Concerns included data security, cited by 58 per cent of respondents, unpredictable purchasing decisions at 52 per cent, and the loss of personal connections with retailers at 51 per cent. Fraud liability and difficulties reversing unauthorized purchases were also cited as concerns.
Payments Canada compiled the report using data from payment service providers, payment networks and industry sources, supplemented by quantitative and qualitative market research. The study examines retail payment activity and consumer and business payment behaviour across Canada.