Why you should be interested in new payment trends
Payment trends like digital wallets, self-checkout kiosks, and wearable payments are reshaping how Canadians shop. Businesses that adopt emerging payment technologies may improve customer experience, increase efficiency, and stay competitive as consumer expectations evolve.
While adding new payment methods might have been seen as tedious, time-consuming, and expensive in the past, interest in digital payment methods and usage among consumers and businesses have now accelerated.
In fact, our 2025 State of Canadian Payments report found that innovation and new offerings were the top reasons businesses wanted to switch vendors.
Other research shares similar findings. A recent report by Payments Canada found that Canadians are continuing to embrace innovations in the digital payment space.
Canada’s recent Consumer-Driven Banking Act, overseen by the Financial Consumer Agency of Canada (FCAC), lays the groundwork for further advancements in the financial services landscape. The FCAC says they are pursuing a consumer-driven framework that prioritizes innovation and allows consumers to better manage their finances — and financial outcomes — with the latest secure, data-driven financial and banking services.
According to the Government of Canada, establishing this framework presents many benefits for consumers, businesses, and the Canadian economy. For starters, consumers would gain enhanced data security and protections for the digital economy while businesses benefit from improved efficiency and reduced administrative burden. At the same time, the implementation of consumer-driven banking is poised to strengthen the Canadian economy and boost international competitiveness.
The rise of contactless card payments and digital wallets is just the beginning. In this article, we'll take a look at emerging payment technology innovations.
Key emerging payment trends in Canada include:
- Self-checkout kiosks
- Digital wallets
- Wearable payments
- Contactless card transactions
According to Payments Canada’s annual report:
- Contactless payments accounted for 58% of transactions.
- 13 billion transactions were contactless. This is up 11% from 2023.
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What are the benefits of self-checkout kiosks?
You're likely already familiar with self-checkout kiosks. In a nutshell, consumers can use these self-payment stations to scan and pay for goods and services without any interaction with a cashier. Self-checkout kiosks can integrate with new payment technologies such as digital wallets and built-in virtual keyboards.
Self-checkout kiosks can enhance the customer experience by cutting down on wait times and providing privacy. Another benefit of self-checkout kiosks is that customers can feel more secure by paying on their own rather than handing over a card to a restaurant server, for instance.
For business owners, self-checkout kiosks offer flexibility and reduced labour costs. They can also help businesses gain valuable insights by providing helpful data on customer preferences. To make the most of self-checkout kiosks, consider strategically placing them in high-traffic areas or near the traditional checkout location.
North America was the largest region in the self-service kiosk market share in 2024, according to the Self-Service Kiosk Global Market Report 2025 from Global Information, Inc.
According to our 2025 State of Canadian Payments white paper:
- 74% of large businesses and 62% of SMBs surveyed said they stayed current with the latest technology in payment processing services
- 72% of large businesses and 58% of SMBs surveyed said they were willing to try new, emerging payment processing services
- 75% of large businesses and 62% of SMBs surveyed were excited about innovation in payment processing services
- 74% of large businesses and 62% of SMBs surveyed said their customers expected the latest in payment processing services
- 68% of large businesses and 61% of SMBs surveyed said they were proactive in exploring new payment processing services
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Why are digital wallets growing in popularity?
Also known as a mobile wallet, a digital wallet is an app on your mobile phone or smartwatch that stores your payment information. You can think of this payment option as a digital version of a wallet that holds your credit, debit, and prepaid cards. A mobile wallet can also be used to store loyalty cards.
Managing multiple payment methods within a single app is convenient and efficient, and using a phone or watch to pay makes for a streamlined, contactless checkout experience. According to our 2025 State of Canadian Payments, 53% of survey respondents offered mobile wallet payments and 67% said mobile wallet payments were trustworthy.
Top Drivers
- Improved security of payment transactions
- Increased customer satisfaction
- Cost savings through reduced operating costs, reduced vendor fees, etc.
- The ability to keep their business up to date with the industry standard in payment processing
Top Barriers
- Risk of fraud and non-payment
- Security risks
- Additional costs such as vendor fees and overhead
- Required employee training
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What are wearable payments and how do they work?
As the name implies, wearable payments are a type of contactless payment made via a wearable device, such as a fitness tracker, smartwatch, ring, or keychain. Shoppers can tap or scan their wearable payment devices thanks to a linked debit or credit card. The devices themselves use near-field communication (NFC) or radio-frequency identification (RFID), which is the same technology used when a shopper initiates a contactless transaction by waving a card or digital wallet over a reader.
The benefits of wearable payments are many. They offer convenience, the ability for hands-free payment, and the choice to pay without lugging around a physical wallet with cards or cash. That’s what makes them such an appealing option for customers who engage in activities that would otherwise make carrying traditional payment methods more impractical and inconvenient. For example, wearables are great for commuters who want to quickly pay for their public transportation fare, runners who want to grab a coffee after they’ve logged their miles, or parents who may find it cumbersome to check out by card with young children in tow.
According to our State of Canadian Payments report, 39% of payment decision-makers surveyed said they desired to offer wearable payments.
Conclusion
The combination of innovative payment technology and its growing adoption among Canadian consumers means businesses who don’t embrace payment advancements may fall behind. But by staying up to date with industry news and exploring new options, businesses can offer consumers a flexible, streamlined payments experience.
Adopting new payment trends can help businesses:
- Reduce checkout friction
- Lower labour costs
- Increase transaction speed
- Meet evolving consumer expectations
- Stay competitive in a digital economy
Check out our resource articles for more business and payment insights. Plus, don’t miss our analysis of insights from 2,800 Canadian business decision-makers in the 2025 State of Canadian Payments report. Contact us to explore tailored payment solutions for your business.
Payment technology in Canada is evolving quickly. Businesses that adopt flexible, secure, and customer-friendly payment options are better positioned to grow and remain competitive as digital adoption increases.
FAQ
Canadians are increasingly embracing contactless payments, digital wallets, wearable devices, and self-checkout kiosks. Businesses are adopting these technologies to improve convenience, reduce wait times, and enhance the overall customer experience. The rise of digital and contactless payments is being driven by consumer expectations and advances in payment technology.
Digital wallets use encryption and tokenization to protect your payment information, making them more secure than carrying physical cards. Many apps also include multi-factor authentication or biometric security, such as fingerprints or facial recognition, to ensure only the authorized user can make payments.
Wearable payments are growing in popularity, especially among younger, tech-savvy consumers. Accepting wearable payments can enhance convenience, speed up checkout, and offer a flexible experience. For businesses with high foot traffic, fast-service environments, or customers on the go, wearable payments can be a valuable addition.
