Interac reports surge in contactless in-store mobile transactions in Canada

Woman in a cage in Canada carrying out a contactless mobile transaction with her smartphone
ADOPTION: Interac’s survey reveals that mobile payment uptake by Gen Z is encouraging its use by Gen X

Transaction volumes for contactless in-store mobile payments made using an Interac debit card stored on a consumer’s smartphone have increased by 53% between August 2022 and July 2023, the Canadian domestic debit card network provider has revealed.

The same 12-month period also saw the total number of Interac mobile debit card transactions in Canada top 1bn for the first time, with notable increases in mobile debit card payments at restaurants and other eating places (63%) and at service stations (48%) over the past year, Interac says.

The widespread uptake of mobile payments by Generation Z adults is one of the key drivers behind the increase, with nearly eight in 10 Gen Z consumers saying they make payments using their smartphone (78%), and this has also encouraged growth in the proportion of Generation X consumers making mobile payments (currently 42%), according to a recent Interac survey.

“While Gen X Canadians appear to have more concerns about the security of mobile and contactless payments, their kids are influencing their payment habits,” the network provider says.

“Four in ten Gen Xers polled (41%) embrace payment options only after they have seen friends and family use them, while half of Gen Z respondents (52%) have taught older family members how to pay with their phone.

“As we look to the future, nearly two thirds of Canadians polled (63%) expect that it will soon be normal to leave home without a physical wallet, knowing you can pay with a smartphone or smartwatch.”

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