The value of contactless payments increased by more than $80 billion over the 12 months, representing a year-on-year growth of 20%, according to the Canadian Payments Forecast from Technology Strategies International.Cards account for three-quarters of contactless payment transactions in Canada, but smartphone and wearable payments have gained significant traction over the past few years, says the report. At the end of 2023 there were almost 30 million smartphones in use in Canada, with 74% of them being NFC-enabled. The number of in-store mobile transactions has grown by 42% over the year and now represents about 23% of all contactless payments.Christie Christelis, president, Technology Strategies International, says: “There are a number of factors that have driven the high growth in contactless payments in Canada over the past ten years.“Almost all debit and credit payment cards can now be used for contactless payments, and the penetration of contactless payment terminals is high among merchants. The increase in the contactless payment limit to $250 during Covid has allowed consumers to pay for higher ticket items without the need for PIN entry.” While in-store accounts for almost 90% of all consumer payments in Canada and cards remain the dominant form factor, mobile is becoming increasingly important. Mobile bill payments and transfers represented 73.5% of all bill payments and transfers in 2023. More than 50% of adult Canadians use their smartphone for online shopping.