Canada Digital Wallet Market

Canada Digital Wallet Market Overview:

The Canada digital wallet market size reached USD 3,485.5 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 10,886.4 Million by 2033, exhibiting a growth rate (CAGR) of 13.49% during 2025-2033.There are numerous factors that are driving the market, which include the rising adoption of mobile phones, ease of internet facilities, thriving e-commerce sector, and increasing focus on enhancing security and convenience thus aiding the Canada digital wallet market share.

Canada Digital Wallet Market Analysis:

• Major Drivers: Growing e‑commerce, widespread smartphone use, and increasing comfort with digital transactions drive wallet adoption. Government support for fintech and bank‑tech collaborations further accelerate the shift toward mobile payment ecosystems in Canada.
• Key Market Trends: Some of the key Canada digital wallet market trends are the contactless and peer‑to‑peer payments dominate usage. Digital wallets are increasingly integrated with loyalty programs, retail platforms, and transit systems. Younger generations lead adoption, while established brands continue expanding partnerships and functionalities.
• Market Opportunities: Open banking reforms create space for innovation. Partnerships between fintechs, banks, and retailers allow deeper wallet integration. Expanding embedded payments and personalized features unlock new revenue streams and enhance customer engagement.
• Market Challenges: Cybersecurity threats, regulatory compliance demands, and privacy concerns complicate growth. Legacy financial infrastructure and high integration costs pose hurdles, while consumer trust and education remain crucial for widespread digital wallet adoption in the Canada digital wallet market analysis.

Canada Digital Wallet Market Trends:

Rising Adoption of Mobile Phones

As per the Statscounter, the share of iPhone and Samsung users in January 2024 were 60.43% and 24.23% respectively. Smartphones are main platforms for digital wallets, allowing users to make transactions at any time and place, improving convenience and usability. Modern smartphones come with sophisticated functions like biometric authentication, near-field communication (NFC), and high-speed internet connections. These characteristics improve the user's experience, increasing the security and efficiency of digital wallets. Furthermore, a growing number of consumers prefer using mobile devices for a variety of tasks like bill paying, banking, and shopping. The acceptance of digital wallets as a practical means of payment is a continuation of this behavioral shift. In addition, quick response (QR) code payments, in-app purchases, and compatibility with other mobile applications are among the features that attract a wide range of individuals. A variety of financial services such as bill payment, money transfers, and microloans, can be provided using digital wallets, which promotes greater financial inclusion.

Thriving E-Commerce Sector

Digital wallets offer a convenient, fast, and secure payment method for e-commerce transactions, making them a preferred choice for many online shoppers. The seamless integration of digital wallets into e-commerce platforms enhances user experience and encourages frequent usage. People are becoming more comfortable with making purchases online, and digital wallets, with their robust security features like encryption and tokenization. These features play a crucial role in enhancing confidence among a large consumer base thus supporting the Canada digital wallet market growth. Additionally, e-commerce transactions require quick and efficient payment methods. Digital wallets provide this convenience by allowing users to store their payment information securely and complete transactions with just a few clicks. This speed and ease of use are significant advantages in the fast-paced e-commerce environment. Furthermore, e-commerce platforms often collaborate with digital wallet providers to offer exclusive deals, discounts, and cashback offers to customers using digital wallets. These incentives drive the adoption of digital wallets among online shoppers looking for the best deals. According to the ECDB, the Canadian e-commerce market is predicted to hit US$ 62,103.3 million by 2024.

Canada Digital Wallet Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for ​2025-2033​. Our report has categorized the market based on type, deployment type, and industry vertical.

Type Insights:

• Proximity
• Remote

The report has provided a detailed breakup and analysis of the market based on the type. This includes proximity and remote.

Deployment Type Insights:

• On-Premises
• Cloud

A detailed breakup and analysis of the market based on the deployment type have also been provided in the report. This includes on-premises and cloud.

Industry Vertical Insights:

• Education
• Gaming
• Information Technology and Telecommunications
• Aerospace and Defense
• Legal
• Media and Entertainment
• Automotive
• Banking Financial Services and Insurance
• Consumer Goods
• Others

The report has provided a detailed breakup and analysis of the market based on the Industry Vertical. This includes education, gaming, information technology and telecommunications, aerospace and defense, legal, media and entertainment, automotive, banking financial services and insurance, consumer goods, and others.

Regional Insights:

• Ontario
• Quebec
• Alberta
• British Columbia
• Others

The report has also provided a comprehensive analysis of all the major regional markets, which include Ontario, Quebec, Alberta, British Columbia, Others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Latest News and Developments:

• In November 2024, Beacon unveiled Beacon Money, Canada’s first purpose-built digital wallet for immigrants, integrated into its MyBeacon Super App. Launching in January 2025 with an open waitlist, it enables newcomers—students, workers, and permanent residents—to open, fund, and use wallets before arriving in Canada. Paired with Beacon Remit, it supports pre-funding living expenses, tuition, and GICs, simplifying settlement and financial management for immigrants, particularly those relocating from India.
• In July 2024, Kuda Technologies plans to launch a multi-currency digital wallet in Canada by Q3 2024 after securing a payment license. Partnering with Vendy, the wallet will provide Africans in Canada, including recent migrants, an easy, transparent, and affordable way to send money home. According to CEO Babs Ogundeyi, the initiative aims to enhance financial well-being and maintain strong connections between African migrants and their countries of origin.
• In May 2024, In Canada, Apple introduced Tap to Pay on iPhone, which allows companies of all sizes to accept contactless payments with just an iPhone and an iOS app that is compatible with partners. These payments include credit/debit cards, Apple Pay, and other digital wallets. With more to come, the initial partners are Adyen, Moneris, Stripe, and Square. For Canadian merchants, this capability improves safe, practical in-person transactions without the need for extra hardware or payment terminals.

Canada Digital Wallet Market Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Canada digital wallet market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Canada digital wallet market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Canada digital wallet industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.