How Canadians pay, shop and choose now, and what it means for a small business

The way customers find, choose and pay a small business has changed more since 2022 than in the decade before it. Most of the change is quiet: a phone held to a terminal, a review read in a parking lot, a question typed into an AI assistant instead of a search box. Each one shifts what a small business needs to get right.

Here is what the recent Canadian data shows, and what it means in practice.

Paying: tap is the default, but cash is not gone

Payments Canada reports that 58% of all payment transactions in 2024 were contactless, and mobile contactless payments grew 28% in a year. The Bank of Canada’s 2025 survey found that 63% of in-person payments were contactless, while cash fell to 18%. More than three in four adults still keep some cash on hand, so cash has become the backup rather than the norm.

What it means: a slow or card-only checkout now costs sales. Tap, phone wallets and Interac e-Transfer for invoices are the baseline. The cost of taking cards has also come down for small merchants: an agreement between the federal government and Visa and Mastercard cut small-business card fees by up to 27%, depending on size, and phones can now take tap payments without a separate terminal.

Shopping: online and in-store, together

Online is growing, but it has not replaced the shop. Payments Canada found that 60% of Canadians made an online purchase in a given month in 2024. Yet e-commerce was only 6.1% of retail sales in December 2025, according to Statistics Canada. PwC’s 2026 holiday survey found that visiting stores is still the top channel, and 40% of shoppers plan to buy both online and in-store.

On the business side, 32% of Canadian businesses received orders online in 2023, about the same as in 2021. Many small firms tried e-commerce during the pandemic and stopped there.

What it means: customers research online and often buy in person, or the reverse. Accurate hours, prices, stock and booking options online bring people through the door. A full online store is not always necessary. A clear way to book, order or ask a question usually is.

Choosing: reviews, people and local

Most customers check you out before they call. In BrightLocal’s 2025 survey of American consumers, only 4% said they never read online reviews of local businesses, and only 7% did not expect a business to respond to reviews. Canadian data on this is thin, but the habit is the same on both sides of the border.

At the same time, Canadians still want a person. PwC’s 2025 survey found that 73% prefer to speak directly with a customer service agent, and only 9% put AI chatbots in their top three ways to get help. Buying local has also become a choice people make on purpose: 49% told PwC they would pay more for a Canadian-made product of similar quality, and 78% told an Interac survey in 2025 that they had moved at least one monthly purchase to a local business.

Spending is careful. Moneris reported flat card volumes in early 2026, and 23% of Canadians described their own finances as poor. Customers have choices and less room for a bad experience.

What it means: a small local business has a real advantage in the human side of service. Answer reviews, make it easy to reach a person and say clearly that you are local.

AI is starting to stand between you and the customer

PwC found that 28% of Canadians planned to use AI in their 2026 holiday shopping, up from 17% a year earlier, mostly to research products. When a customer asks an AI assistant for “a good bookkeeper in Langford” or “a dentist open Saturdays near Colwood”, the answer is built from what is published about you online: your website, your business profile and your reviews. Outdated or thin information means you are less likely to be suggested at all.

Business models that technology now makes possible for a small firm

These changes also open new ways to earn revenue. None is new to large companies. What has changed is that the tools now cost a small business very little:

• Memberships and subscriptions. A monthly plan for regular services, such as maintenance, cleaning or tutoring, smooths cash flow and keeps customers coming back.
• Online booking with deposits. Customers book when it suits them, and a small deposit reduces no-shows.
• Direct ordering. Taking regular customers’ orders on your own site or by message, instead of through a high-commission marketplace.
• Service anywhere. Phone-based payments and video calls let a service business sell and deliver beyond its own front door.
• Click and collect. Order online, pick up in store: simple to set up and popular with customers who want both.

The right model depends on your customers. Test one with a small group before rolling it out.

TopicsBusiness modelsCustomer experiencePayments