Credit cards are the most used payment method in Canada, accounting for 39% to nearly 50% of retail transactions. Together with debit cards (30%), cards make up over 60% of total payment volume. Contactless "tap" payments are the norm for in-store purchases, while Visa and Mastercard dominate.
Most Popular Payment Methods in Canada
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.
Debit, credit, cheques, prepaid cards, mobile payments and crypto assets.
Unlike Zelle, which only works for domestic bank-to-bank transfers in the US, PayPal lets you send money across borders, making it a go-to option for international payments. One of PayPal's main advantages is that personal transactions within Canada are free when funded by a linked bank account or PayPal balance.
Regardless of how much you plan to spend, it's important to understand the financial habits of people in Canada compared to those in the UK. Canadians don't use cash frequently and cards are the most popular option when paying.
Credit and debit are the top choices for larger transactions.
Which payment app works in Canada? PayPal is a payment app that works in Canada, as well as in many countries outside of Canada. KOHO and Wealthsimple Cash work within Canada. Zelle, Venmo, and Cash App do not work in Canada.
Unfortunately, Venmo is not available in Canada. Thankfully, there are several alternatives that you can use instead. In this article, we'll look at Venmo alternatives like Wise - a platform designed to provide an enhanced experience for sending and receiving money locally and globally.
Interac e-transfers
Payments are nearly instant, and the only information you need to send an Interac e-transfer is the recipient's phone number or email address. Interac e-transfers are for domestic transfers only. The person you're sending money to must have an account with a participating Canadian bank.
Spoiler alert: Cash App isn't available in Canada. But don't worry – we've got something even better. If you've been hearing your American friends rave about Cash App and wondering why you can't get in on the action, here's the deal: Cash App only works in the US and UK.
Interac e-Transfer® Request Money helps make it easy for people to pay you. Recipients are notified of your request through email or text message, and they can pay you through their own participating Canadian financial institution2 using Interac e-Transfer®.
Unlike Cash App, which primarily operates in the United States, PESA is tailored to the Canadian market and 20+ other countries. This localization extends to customer support, ensuring that users can access assistance tailored to their specific needs and concerns.
Apple Pay participating banks in Canada, Latin America, and the United States. Apple Pay works with many of the major credit and debit cards from the top banks. Just add your supported cards and continue to get all the rewards, benefits, and security of your cards. We're working with more banks to support Apple Pay.
You can't use Zelle in Canada - it's for payments between US based banks only. Use this handy guide as a way to find alternative providers to make convenient, low cost, online and mobile payments to Canada.
Yes, PayPal works extensively in Canada for online shopping, sending/receiving money domestically and internationally, and managing finances, supporting CAD and other currencies, allowing users to link bank accounts or cards for transactions, though fees apply for certain international or card-funded payments. It's a widely used platform, even accepted by major Canadian retailers, and serves as a common alternative to other services like Venmo in Canada, note this Wise article.
Interac e-Transfer® is the closest thing Canada has to Venmo's simplicity for domestic payments. Most Canadians already know how to send and receive money this way, making it familiar for both you and your customers.
Remitly. Remitly is a popular PayPal alternative for consumers across Canada, and this digital payment processing platform offers several different methods to receive your money. You can send and receive money via a mobile app, or use home delivery.
No Cash App doesn't work in Canada. To use Cash App both the sender and the receiver must be residents of the US and UK. This means you cannot send or receive money from someone in a different country.
But one of the cool features is the Cash Card. It is a free debit card linked to your Cash App balance. That way, you can spend your balance directly without having to transfer it to a bank account. Cash App also offers these instant transfers to a bank for a 1.5% fee, a tad lower than Venmo's.
Apple Pay Canada
Owing to the popularity of iOS, Apple Pay has become a top payment gateway in Canada and globally. The app facilitates easy and secure purchases, in stores, apps and on the web. Not to forget how easy the app makes sending money to friends and family via iMessages.
One of the safest, most efficient ways to move money from your account into someone else's is to send a wire payment through your financial institution. Wire payments between Canadian financial institutions are protected by a strong legal framework that enables trusted near real-time payments across Canada.