2023 North American PaymentsInsights: Canada: Exhibit

Consumer payments is a wide-ranging topic that can be covered in many ways. Viewing payments trends through a generational lens is important for understanding both the customer of today and the customer of tomorrow.

The Canadian market is dealing with high levels of inflation, causing a strain on consumer budgets and is reflected in the high utilization of credit products. Credit cards continue to be the most used method of payment in Canada, both in-store and online, followed by debit cards - across all generations. For non-card methods, cash continues to see wide usage among all generations, while Gen Z and Millennials are driving adoption of digital methods such as digital wallets and BNPL. Older generations are still using paper cheques in high volumes.

Peer-to-peer payments is a particularly competitive market in Canada between two major providers. Whereas PayPal is the dominant provider for P2P payments in the U.S., the Canadian Interac network’s e-transfer system is the most used in Canada at high levels among all generations, followed by PayPal. However, cash is still the most preferred method of payment for paying other persons in Canada.

Digital wallet usage continues to be driven by younger generations. In terms of providers, PayPal leads overall, followed by Apple Pay. The most common use case for digital wallets is in the online environment, particularly at sophisticated online retailers such as Amazon. For the in-store context, digital wallets are most used at department stores across all generations. We expect digital wallets to continue to gain momentum as familiarity with the technology increases.

Highlights of the exhibit report include:

• Personal Banking Experience
• Payment Methods & Usage
• Credit
• P2P Payments
• Mobile/Security
• Real-Time Payments