Future of Retail, Payments & eCommerce
Retail Payment Trends to Keep an Eye on this Holiday Season
In 2023, Canada saw 21.7 billion retail transactions worth $11.9 trillion. As the holiday shopping season approaches, businesses must adapt to changing consumer payment preferences. E-commerce surged to $71.6 billion in 2023, with popular categories including clothing, groceries, and electronics.
In 2023, 21.7 billion retail payment transactions were made in Canada, totalling $11.9 trillion.
As we enter arguably the busiest holiday shopping period of the year, here’s a closer look at the retail payment options that consumers are using. These trends are important for businesses to understand, to inform their decisions on how to send and receive payments, ensuring they meet their current and prospective customer's payment needs and preferences.
According to Payments Canada research, e-commerce grew to $71.6 billion or 546 million transactions in 2023. The top categories of online purchases included clothing, restaurants/fast food, groceries, electronics and personal beauty products.
Close to three in five Canadians (57 per cent) made an online purchase in the past month. Credit cards continued to be the preferred choice for e-commerce transactions at 57 per cent followed by PayPal and debit cards at 18 per cent each. Over one-in-ten Canadians (13 per cent) used smart devices or social media for placing an online order or initiating a payment in a given month in 2023.
Increasingly, Canadians are looking for credit card benefits to enhance their lifestyle through their passions – entertainment, sport, and travel. Mastercard is shaping consumer experiences by offering innovative benefits that address current and emerging needs of consumers.
Ken Donohue
With newly introduced benefits, using your eligible World and World Elite Mastercard has never been better.* Sleep easily with discounts on stays through Booking.com. No longer fuss with local SIM cards, thanks to access and discounts on plans with powerful global data roaming by FlexiRoam. And never miss your favourite sport, show, or movie with offers from streaming service Fubo – the only choice for watching Premier League, Serie A, and Coppa Italia in Canada. These and other cardholder benefits will have your friends and family eager to experience the advantages you enjoy.
In today's fast-paced world, consumers are seeking convenience, security, and holistic well-being in their interactions. Mastercard understands these multifaceted expectations and takes a proactive approach to staying informed about consumer needs. Committed to innovation in payment technologies, the company is eager to continue enhancing the overall experience for Canadian cardholders.
“As Canadian preferences and behaviours evolve, we continue
Overall, Canadians were generally satisfied with their payment experience buying online in 2023. However, 13 per cent of Canadians experienced not being able to use their preferred payment method while shopping online (up slightly from 11 per cent last year).
Having a diverse selection of payment options is important in attracting and retaining customers. If you’re a business looking to learn more about the payment preferences and behaviours of your customers this holiday season, I encourage you to take a look at Payments Canada’s Canadian Payment Methods and Trends report available on payments.ca.
to leverage data and insights to refine our products and introduce new benefits that enhance the lives of Mastercard card holders,” says Craig Reiff, Senior Vice President of Core Payments at Mastercard, Canada. “Our vision is to provide unparalleled value and experiences that go beyond the card.”
The rapidly evolving digitization of society is having positive impacts for retail and e-commerce experiences, providing consumers and businesses with efficient digital payment solutions. Mastercard is playing a key role in powering this shift. Canadians can take advantage of fast, frictionless payments, which provide speed and simplicity, enhancing their everyday transactions. Through continuous innovations, Mastercard is helping provide consumers with a more convenient, efficient, and seamless payment experience.
StephenYun Senior Analyst, Market Insights, Payments Canada
Craig Reiff Senior Vice President of Core Payments, Mastercard, Canada