The outbreak of COVID-19 has resulted in a significant shift in preference for consumers towards the use of e-payments
Here’s when card payments in Canada are set to rebound. Source: pexels.com
According to GlobalData, Canada’s card payment market, which has been on the rise for the past few years, registered a decline of 2.8% in 2020 due to COVID-19. Although, with the gradual recovery in economic activities, card payments are expected to rise by 6.8% to reach C$872.3 billion (US$683.9 billion) in 2021.
A survey conducted by Payments Canada in November 2020 has found that approximately 47% of Canadians surveyed report using their contactless debit and credit cards more often than pre-COVID. To encourage the shift away from cash, the contactless payment limit was increased from C$100 ($78.41) to C$250 ($196.02).
The overall decline in consumer spending was somewhat offset by a rise in online spending, as wary consumers stayed at home and used online channels for purchases. According to a study from Payments Canada dated May 2020, 28% of credit card users were using them more frequently for online payments compared to pre-pandemic levels. With credit and debit cards accounting for over one-third of total e-commerce payments, the rise in e-commerce will drive the overall card payments market.
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