Payment Methods in Canada: Everything You Need To Know

Canada’s payment landscape is evolving more rapidly than ever. According to Payments Canada, there were more than 20.5  billion transactions in 2022, totalling $11.7 trillion CAD, and that number has been growing since then. Smartphones and contactless banking are widely used, contactless debit transactions doubled in recent years, largely driven by Gen Z, who fuels a 27 per cent rise in mobile spending.

For merchants entering or expanding in Canada, understanding domestic payment preferences is vital. Familiar payment options, especially the local account-to-account payment method Interac, will build trust, minimise cart abandonment and boost conversion for your e-commerce business. This guide reviews Canada’s top payment methods, highlights the rise of open banking, and explains how Noda offers a unified, localised payment gateway.

Most Popular Payment Methods in Canada

Merchants expanding into Canada, or offering their services to Canadian customers, must understand that the market of payment methods available in Canada offers both similarities, and crucial differences to its European counterpart. Successful e-commerce businesses will offer a mix of methods to respond to the local preferences.

In Canada, Interac Debit and Interac e‑Transfer dominate account‑to‑account payments, together accounting for billions of annual transactions. Credit and debit cards, mobile wallets (like Apple Pay, Google Pay), PayPal, and BNPL services remain strong contenders. Open banking in Canada is not available yet as of July 2025, but the in-depth plans for implementation as early as 2026 are already in place, which means merchants can start building now to fit the regulatory changes and match the demand for faster, cheaper, and more secure payments.

Online Payment Methods in Canada

Canadian shoppers expect fast, secure, and simple options at checkout. Local debit and e‑Transfer solutions are widely trusted, while cards remain critical, especially for international transactions. Mobile wallets and BNPL appeal to younger customers and an increasing number of international buyers. Merchants risk losing a large portion of sales when they omit these preferred methods – that’s why it is important to understand the best payment methods in Canada as highlighted below.

Top 8 Payment Methods in Canada

1. Interac Debit & e‑Transfer

Interac is one of the most common payment methods in Canada, and the country’s most widely used account-to-account payment network, playing a central role in how Canadians pay both in person and online. According to Interac’s website, In 2023, Canadians performed 6.5 billion debit transactions and over 1.16 billion e‑Transfers.

Interac remains one of the most trusted names in Canadian payments. There are three distinct services worth understanding: Interac Debit, Interac Direct, and Interac e-Transfer.

Interac Debit is widely used for in-store purchases and also supports online payments when paired with mobile wallets like Apple Pay or Google Pay. This allows customers to pay directly from their bank accounts through a smooth, card-free experience on supported devices. However, online availability depends on whether the merchant supports these wallets, so its e-commerce use is still somewhat limited. Interac Direct is Canada’s emerging solution for account-to-account online payments. It allows users to pay straight from their bank during checkout, without needing a card. This service is powered by KONEK and is designed to replace the now-discontinued Interac Online. Interac e-Transfer, while commonly used for sending money between individuals or small business payments.

In 2023 alone, Interac Debit Card transactions reached 6.5 billion, reflecting growing consumer preference for digital payments. Interac e-Transfer also processed over 1.16 billion transactions that year, demonstrating its widespread use for quick and secure money transfers between individuals and businesses. Many small businesses have adopted Interac for its strong brand recognition, low fees and easy integration with digital checkouts, making it a key player in Canada’s online payment landscape. While Interac Debit remains common for in-store purchases, its digital services are driving the future of online commerce.

2. Credit & Debit Cards (Visa, Mastercard)

According to Statista, cards account for over 64 per cent of consumer payments in Canada. Debit cards, in particular, are popular due to familiarity, budget control, and widespread acceptance. However, credit cards remain essential for cross-border and high-value transactions. Merchants should be aware of higher processing fees, fraud risk and chargebacks.

3. Apple Pay & Google Pay

Mobile wallets are growing fast in Canada, with over 37 per cent of payments made using Apple Pay or Google Pay as of March 2025. Linked to debit or credit cards, they offer secure, tap-to-pay convenience through NFC and tokenisation. Apple Pay also supports transactions above the C$100 limit using device verification. As speed and ease matter more to consumers, mobile wallets are becoming a key part of the payment mix.

4. PayPal

PayPal continues to be a trusted option for online shoppers. It offers buyer protection and fast checkout – even in Canada. However, fees are higher, and its appeal is stronger among international buyers. Many Canadian merchants use PayPal as a secondary option to accommodate broader audiences. 

5. BNPL Services (Klarna, Afterpay)

Buy‑now‑pay‑later is growing in Canada, with platforms like Klarna, Afterpay and Affirm gaining traction. These options can raise average order values but require merchants to manage integration and customer defaults. They also usually incur much higher fees for merchants than standard card processing fees.

6. Prepaid Cards & Vouchers

Solutions such as Paysafecard and prepaid e-cards cater to privacy-conscious users or those without cards. They are often used in iGaming and anonymous online purchases. However, these methods do not support payouts and are therefore not suitable for all merchants across all industries in e-commerce.

7. Open Banking Payments

Real-time account-to-account payments are starting to take shape in Canada, with full open banking expected to be rolled out by 2026. Although the technology is not yet fully implemented, the country’s financial sector is already building advanced digital payment systems and innovations in preparation. Nearly half of Canadians recognise the benefits of open banking and are eager to adopt it once available. These future services promise faster, more cost-effective settlements and improved security, including reduced fraud. As this infrastructure develops, open banking will become an essential feature for forward-thinking merchants looking to offer seamless, efficient payment options.

The Rise of Instant and Mobile Payments

Gen Z and mobile-first users are driving contactless payment adoption. According to Interac, in early 2024, 69 per cent of Gen  Z Canadians used mobile wallets, and 63 per cent preferred to leave their physical wallets behind for quick outings. As mobile spending increases, merchants should prioritise contactless and real-time payments to meet consumer expectations.

Choosing A Payment Gateway in Canada

Canadian payment gateways need to support a wide range of options to meet consumer expectations and ensure strong conversion rates. This includes Interac Debit and eTransfer, Visa and Mastercard, mobile wallets such as Apple Pay and Google Pay, PayPal, buy now pay later services, prepaid voucher acceptance, and increasingly, open banking and real time bank transfers.

Leading providers in the market include Moneris, Elavon, Stripe, Square and Shopify Payments. However, Noda stands out by enabling Interac payments through open banking, offering a unified solution that combines bank transfers, card and wallet options in one streamlined integration with significantly lower transaction fees.

Why Local Payment Methods Matter

According to Payments Canada, half of businesses now accept Interac e‑Transfer. Meanwhile, most consumers expect familiar payment options at checkout to avoid cart abandonment. Merchants lacking local payment choices risk losing sales and damaging customer trust.

Introducing Noda For Your E-Commerce Business in Canada

Noda provides a unified gateway tailored to Canadian needs:

• Instant Bank Payments in Canada via Interac.
• Broad International Connectivity to over 2,000 banks across 28+ countries in Europe and beyond through a secure open banking API.
• Extremely low fees starting from as little as 0.1%.
• Instant settlement. Receive payments in seconds directly to your bank account with no intermediaries or lengthy card processing.
• Card and mobile wallet PayPal acceptance.
• Developer-friendly API and no-code solutions (payment links, hosted pages, QR codes).
• Built-in compliance with local regulations and fraud protection.
• Integrated with major Canadian banks including BMO, Canadian Western Bank, EQ Bank and others.
• Plugin integration. Go live in minutes with plugins for WooCommerce, Magento, Prestashop, and OpenCart.
• Dedicated account manager for smooth onboarding and optimisation.

Noda simplifies launch and scaling in Canada, reducing operational complexity and improving payment efficiency.

Ready to join the future of payments in Canada?

Book Your Free Demo – See exactly how Noda can unlock the Canadian market for your business.