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Canada

Mobile Commerce Clusters

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Mobile Commerce Clusters
Measures partnerships among banks, mobile networks, and governments.
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Environment

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Environment
Measures economic, technological, and demographic factors within a market.
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Infrastructure

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Infrastructure
Measures the sophistication and penetration of the mobile phone industry and NFC terminalization.
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42.0

Consumer Readiness

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Consumer Readiness
Measures how familiar with, how willing to use, and how frequently consumers are currently using all three types of mobile payments.
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Financial Services

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Financial Services
Measures the effectiveness and penetration of consumer financial products.
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Regulation

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Regulation
Measures legal and regulatory structures and how they affect businesses.
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Summary

Canadians are extremely ready and willing to engage in mobile payments, but they may not have all the tools they need to make them able. Nevertheless, high Consumer Readiness, a very advanced Infrastructure at POS, and a proactive government gave Canada a score of 42.0, second place on the MasterCard Mobile Payments Readiness Index.

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What you need to know:

Canadians are familiar with and ready to use m-commerce
Canada has very high levels of NFC penetration at the POS
Canada’s mobile device penetration rate is 100%, compared to Germany's 192%

Country Overview

Market Forces

In Canada, mobile phone subscriptions as a percentage of the population aged 15 to 64 is 100 percent, as compared with the United States at 134 percent, the United Kingdom at 197 percent, and Germany at 192 percent. In addition, annual investment in telecom infrastructure is substantially less than in the United States, on the one hand, and in India, on the other. The disconnect between these Canadian phone penetration numbers and the strong penetration at POS for EMV payments points to an opportunity for improvement in Canada.

Consumers are willing, the network infrastructure is ready, but device penetration lags.

This needs to be assessed in light of the very strong showing Canada delivers in Mobile Commerce Clusters—the Index’s measure of integration among all the players needed to execute mobile payments. Test2Pay has opened its mobile billing platform to major Canadian telcos including Rogers and Bell; BOKU offers 1-Tap

mobile billing for Android. Bank of Montreal has commercialized mobile PayPass tags. In spite of these collaborations, there is a disconnect at both ends: Consumers are willing, the network infrastructure is ready (or being readied), but the device penetration lags behind Index averages.


Consumer Sentiment

In some ways, Canada is the mirror image of Singapore. The latter has probably the most advanced infrastructure and environment globally for mobile payments readiness, but a consumer base that, while highly motivated and highly banked, lags behind others in actual mobile payment use.

In Canada, by contrast, consumers score extremely high, with 27 percent professing familiarity with using mobile devices to shop the Internet, compared with an Index average of 20 percent. Twenty-five percent are willing to use mobile devices to make Internet purchases compared with an Index average of 21 percent. And 15 percent of Canadian consumers profess willingness to use a mobile device to buy merchandise at POS, two percentage points behind the Index average.

© MasterCard

GLOBAL PERSPECTIVE ON CONSUMER SENTIMENT IN CANADA

Relative to the Index average and leading countries, how do consumers feel about mobile payments?

54% - France
Country Score Index Average Leading Country

MasterCard Conclusion

According to the MasterCard Mobile Payments Readiness Index, Canada, like the United States, is very strong in propensity and usage in m-commerce, and it is there the market will likely have its greatest success. Internet shopping holds no terrors for Canadian consumers, and the current boom in tablet sales can only fuel their desire to conduct this familiar form of commerce from wireless media. Until then, the financial services community, telcos, and device makers need to figure out why Canadians have fewer subscriptions than the developed world and partner together to do something about it.

42.0
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