Although the wide use of credit and debit cards in Canada has constrained the development of digital payments, Canadian consumers gradually started to change their payment habits and adapt to new technologies in recent years. Both large and small businesses are increasingly adopting digital payment options.
Although proximity digital commerce is expected to see the strongest growth over the forecast period, remote digital commerce is expected to continue to see higher actual growth in Canada over the forecast period. Retailing and transport are the two industries that have the highest share of remote purchases and will continue to see strong value growth.
The development of mobile payments has been constrained by the popularity of contactless payment. Many Canadian consumers are already used to the convenience of tapping their financial cards on a POS machine, and have little incentive to switch their payment habit.
Apple Pay leads both proximity and remote payments. Apple Pay is accepted by most POS terminals which support contactless payment.
Meanwhile, WeChat Pay and Alipay, two China-based online payment platforms, have been expanding to increase their acceptance amongst merchants in Canada. In 2017, Canadian fintech firm Snap Pay became the marketing and payment partner for Alipay.
Whilst Facebook Messenger has not utilised its payment capabilities in Canada, it has expanded its role beyond a messaging app and added more features for businesses to connect with their customers. Especially in travel, Facebook Messenger has become a preferred tool for travel companies to communicate with consumers, as well as to use the Messenger bot to guide through the booking process.
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