How people pay in Canada in 2026
Canada is a card-first market with a strong domestic network. Canadians made 22.5 billion retail payments worth $12.2 trillion in 2024, according to Payments Canada, and 86% of them were digital. Credit cards accounted for 33% of all transactions, debit cards for 30% and cash for 11%. The domestic champion is Interac, Canada's debit and transfer network. Its 2025 corporate year in review counts 7 billion Interac Debit transactions and 1.6 billion Interac e-Transfer transactions, both up from 2024.
At the till, credit cards now lead. In the Bank of Canada 2025 Methods-of-Payment Survey, credit cards covered 48% of point-of-sale payments, debit 25% and cash 18%. Online, shoppers pay by credit card, PayPal and co-badged debit cards, and Interac is pushing new e-commerce options such as Konek. The next step is infrastructure. Payments Canada plans to launch its Real-Time Rail in Q4 2026, and the new consumer-driven banking framework will open bank data to accredited providers. For merchants and their payment providers, Canada calls for cards, Interac and a few strong wallets and BNPL options. South of the border, our guide to payment methods in the United States covers the neighboring market.
- 22.5 billion retail payment transactions in 2024 (Payments Canada)
- 7 billion Interac Debit transactions in 2025 (Interac)
- 1.6 billion Interac e-Transfer transactions in 2025 (Interac)
- 18% of point-of-sale payments made in cash in 2025 (Bank of Canada)
Payment by card in Canada
Canada has two card worlds. Debit runs mostly on Interac, the domestic PIN and contactless network, while credit runs on Visa, Mastercard and American Express. Payments Canada counted 7.5 billion credit card transactions in 2024, up 6%, and 112 million credit cards in circulation. For the first time, credit tied with debit for point-of-sale volume. The Bank of Canada's 2025 survey shows credit pulling ahead, with 48% of in-person payments by number and 58% by value. Contactless covered 63% of in-person payments.
Interac Debit still carried 7 billion transactions in 2025, mostly in stores. Online, Canadians lean on credit cards: 55% of online shoppers used a credit card in Payments Canada's 2024 data, and 24% a Visa Debit or Debit Mastercard. Card costs are a political topic. Since October 19, 2024, Visa and Mastercard have cut credit card fees for eligible small businesses by up to 27% under agreements with the federal government. Our guides to interchange fees and card networks explain the mechanics.
Card schemes in Canada
Interac Debit
Domestic debit scheme
Canada's national debit network, used with chip and PIN or contactless at almost every terminal, and inside Apple Pay, Google Pay and Samsung Pay. It now also works online through digital wallets at merchants on platforms such as Stripe.
7 billion Interac Debit transactions in 2025, Interac
Visa
International scheme
A leading credit card brand in Canada, issued by the big banks, and present on many debit cards as Visa Debit for online and cross-border payments.
0.95% weighted average interchange on in-store credit for eligible small businesses since October 2024, Department of Finance Canada
Mastercard
International scheme
The other major credit card scheme, issued by banks and retailers, and used on Debit Mastercard cards that Canadians can use online and abroad.
24% of online shoppers used a Visa Debit or Debit Mastercard, 2024, Payments Canada
American Express
International scheme
American Express issues its own credit and charge cards in Canada. It was not part of the 2024 fee agreements, which covered only Visa and Mastercard.
Credit cards
Credit card
Credit cards are the most used payment instrument in Canada, both in stores and online, helped by rich rewards programs and contactless acceptance.
112 million credit cards in circulation in 2024, up 5%, Payments Canada
Payment by cash in Canada
Cash is declining slowly in Canada. In the Bank of Canada 2025 Methods-of-Payment Survey, cash was used for 18% of point-of-sale payments by number and 10% by value, down from 21% and 11% in 2024. Payments Canada counted 2.5 billion cash transactions in 2024, with an average value of $27, about 11% of all retail payments.
Canadians still keep cash at hand. The Bank of Canada found that 76% of Canadians held cash in 2025, with an average of $141 among holders. Its 2024 report found that the vast majority of merchants still accept cash, and that only 13% of Canadians considered themselves cashless. Cash matters most for small, in-person purchases. Online, cash plays almost no role. Our article on the transition from cash to digital payments looks at how other markets made the switch.
Cash payment methods in Canada
Cash
Banknotes and coins
Canadian dollar banknotes and coins remain widely accepted, mostly for small purchases in stores, markets and restaurants.
18% share of point-of-sale payments made in cash in 2025, Bank of Canada
Interac cash withdrawals
ATM cash access
Canadians get cash at ABMs with their Interac Debit card, and banks or ABM operators may add their own surcharge. Over 60% of Canadian ABMs also serve foreign cardholders through international networks, according to Interac.
1% share of retail payment volume made through ABMs in 2024, Payments Canada
Payment by bank transfer in Canada
Interac e-Transfer is Canada's everyday account-to-account payment. Users send money to an email address or phone number from their banking app, and Interac counted 1.6 billion e-Transfer transactions in 2025, up from 1.4 billion in 2024. Payments Canada's online transfers category reached 1.49 billion transactions worth $568.6 billion in 2024. For businesses, Business Request Money passed 160 million transactions in 2025, up 81%, and payment providers now bring it to online checkouts. Interac also launched Konek in November 2025, a bank-backed online checkout with direct account payments through Interac Direct. Interac Online, the older bank-redirect method, was discontinued in 2024.
Recurring bills run on pre-authorized debit over the batch system, part of the 3.2 billion EFT transactions recorded in 2024. Real-time infrastructure is coming. Payments Canada started participant testing of its instant payment system, the Real-Time Rail, in 2026 and targets a Q4 2026 launch. The Consumer-Driven Banking Act received royal assent in March 2026, and payment initiation is targeted for mid-2027.
Bank transfer methods in Canada
Interac e-Transfer
Instant bank transfer
The national person-to-person and account-to-account transfer service, built into almost every Canadian banking app and used to pay friends, landlords, small businesses and online sellers.
1.6 billion transactions in 2025, with a record 149 million in October, Interac
Interac e-Transfer Business Request Money
Request to pay
Lets businesses request and receive e-Transfer payments in their website, app or QR code. Acquirers such as DCPayments added it to online checkout in September 2026, with near real-time settlement.
160 million+ Business Request Money transactions in 2025, up 81%, Interac
Interac Direct and Konek
Pay by bank
Konek is Interac's online checkout built with Canadian banks, and Interac Direct pays from chequing, savings or a line of credit inside it. It launched with BMO, National Bank, RBC, Scotiabank and TD customers and Staples Canada as first merchant, Interac says.
Pre-authorized debit
Direct debit
Pre-authorized debit (PAD) is the standard way to collect recurring payments such as utilities, insurance, gym memberships and subscriptions from a Canadian bank account.
3.2 billion EFT transactions, including pre-authorized debits and direct deposits, in 2024, Payments Canada
Real-Time Rail
Instant payment
Payments Canada's new ISO 20022 real-time payment system, with central fraud services. First participants go live at launch, and existing e-Transfer volumes will migrate in later phases, according to Payments Canada.
Payment by installment and BNPL in Canada
Canada's buy now, pay later market is led by international players, and public usage data is scarce. Affirm entered the country by buying Toronto-based PayBright for CAD 340 million, and in April 2025 it brought Shop Pay Installments to Canadian Shopify merchants, the first launch of that product outside the United States. Klarna gained its largest Canadian retail partner when Walmart Canada added Klarna online and in more than 400 stores in August 2025.
PayPal joined the market in November 2025 with Pay in 4, a no-fee plan for purchases from $30 to $1,500, and its survey found that 60% of Canadians who had not tried BNPL would be encouraged by no fees. Afterpay, part of Block, has been integrated with Square sellers in Canada since 2022. Hard usage data is rare: the FCAC pilot study, covering 2019 to 2021, found that 8% of respondents had used a BNPL service.
Installment and BNPL providers in Canada
Affirm
BNPL
The US provider absorbed Canadian pioneer PayBright and offers biweekly and monthly payment plans at online checkouts. It powers Shop Pay Installments for eligible Canadian Shopify merchants since April 2025.
CAD 340 million paid by Affirm to acquire PayBright in 2021, PaymentsJournal
Klarna
BNPL
Klarna offers Pay in Full and Pay in 4 in Canada, online and in stores through QR codes, with Walmart Canada as its largest omnichannel partner.
400+ Walmart Canada stores accepting Klarna, August 2025, Digital Commerce 360
PayPal Pay in 4
Wallet BNPL
Interest-free plan in four payments over six weeks, with no late fees, offered to eligible PayPal users at merchants that accept PayPal.
$30 to $1,500 eligible purchase range at launch in November 2025, PayPal
Afterpay
BNPL
Block's pay-in-four service, available at Canadian fashion and lifestyle retailers and built into Square in Canada, which gives it reach among small sellers.
Payment by digital wallet and X-Pay in Canada
Phone payments are growing fast in Canadian stores. Payments Canada counted 3.4 billion mobile contactless transactions in 2024, up 28%, and 68% of smartphone owners had paid with their phone over six months. The Bank of Canada's 2025 survey found that 41% of Canadians used a mobile payment in the past year and that about a quarter of contactless credit payments were made with a phone. Apple Pay, Google Pay and Samsung Pay carry these X-Pay payments, and they support Interac Debit as well as credit cards.
Interac recorded 1.8 billion Interac Debit transactions on mobile in 2025, and 14 million Interac Debit e-commerce payments through digital wallets. Online, PayPal remains the main wallet: 34% of online shoppers used it in Payments Canada's 2024 data. Our article on Apple Pay integration covers what merchants need to know.
Digital wallets and X-Pay in Canada
Apple Pay
Mobile wallet
Apple's wallet is widely used in Canada for tap-to-pay with credit cards and Interac Debit, and for one-click payments in apps and on websites.
3.4 billion mobile contactless transactions in 2024, all wallets combined, Payments Canada
Google Pay
Mobile wallet
The Android wallet used for contactless payments with tokenized credit and Interac Debit cards, and for online checkouts.
Samsung Pay
Mobile wallet
Samsung's wallet, one of the three wallets Interac lists for Interac Debit mobile payments in stores, in apps and in browsers.
PayPal
Online wallet
The leading online wallet in Canada, used for e-commerce checkouts, and now with Pay in 4 for installments.
34% of online shoppers paid with PayPal, 2024, Payments Canada
Interac Debit in digital wallets
Tokenized debit
Interac Debit cards added to Apple Pay, Google Pay or Samsung Pay let Canadians tap their phone in stores and, at participating merchants, pay in apps and online.
1.8 billion Interac Debit transactions on mobile in 2025, Interac
Payments in Canada: FAQ
What is the most popular payment method in Canada?
Credit cards. They accounted for 33% of all retail payment transactions in 2024, ahead of debit cards at 30%, according to Payments Canada. At the point of sale, the Bank of Canada's 2025 survey puts credit at 48% of payments, Interac Debit and other debit at 25% and cash at 18%.
Can online merchants accept Interac in Canada?
Yes, in several ways. Interac Debit works online through Apple Pay, Google Pay and Samsung Pay at participating merchants, Interac e-Transfer Business Request Money can be added to checkout, and Konek offers bank-backed direct payments. Business Request Money processed more than 160 million transactions in 2025. Interac Online, the older bank-redirect method, was discontinued in 2024.
Do Canadians still use cash?
Yes, but less every year. Cash covered 18% of point-of-sale payments in 2025, down from 21% in 2024, and 76% of Canadians still carried some. Cash is mostly used for small in-person purchases.
Does Canada have real-time payments and open banking?
Interac e-Transfer already moves money in near real time. Payments Canada's Real-Time Rail is set to launch in Q4 2026, after its rules took effect on August 24, 2026. The Consumer-Driven Banking Act passed in March 2026, with read-only data sharing first and payment initiation targeted for mid-2027.
Accept local payments in Canada with NORBr
In Canada, Moneris and Global Payments lead acquiring, and Interac Debit requires a certified local acquirer. A PSP, PayFac, ISO or ISV should check Interac Debit and e-Transfer coverage, Canadian-dollar settlement, French support in Quebec and Real-Time Rail readiness.
With NORBr, you can connect any acquirer, PSP or local provider that offers Interac Debit, Interac e-Transfer, credit cards and BNPL such as Affirm. Some are already in our connector catalog; Mapper™ gets the others live in days, and Smart Checkout shows each shopper the right methods. Explore the other #PayWorldTour guides.
Local payment providers in Canada
Moneris
Acquirer
Toronto-based acquirer jointly owned by RBC and BMO, among Canada's largest processors of in-store and online card and Interac Debit payments.
Covers: Interac Debit, Cards, Apple Pay, Google Pay, Samsung Pay
Global Payments Canada
Acquirer
Canadian arm of Global Payments, a leading merchant acquirer for retail, hospitality and e-commerce businesses across the country.
Covers: Interac Debit, Cards, Apple Pay, Google Pay
Nuvei
PSP
Montreal-headquartered payment provider offering acquiring and a global gateway to enterprise, e-commerce and platform merchants, with local Canadian methods included.
Covers: Cards, Interac, Apple Pay, Google Pay, PayPal
Helcim
Payment gateway
Calgary-based payment processor for small and mid-sized businesses, offering card terminals, online checkout and invoicing with interchange-plus pricing.
Covers: Interac Debit, Cards, Apple Pay, Google Pay
