A recently released report from MasterCard Canada revealed that electronic payments and e-commerce are growing and contributing a great deal to the Canadian economy.

According to the news release, the MasterCard Advisors SpendingPulse report indicated that online spending grew by more than 37 per cent in August, compared to the same time period a year ago. This marks the 40th consecutive month of positive year-over-year growth rates for e-commerce transactions, suggesting that Canadians have been migrating to online portals for their shopping needs in droves.

"The growth of e-commerce in Canada is significantly outpacing overall retail sales growth," Michael McNamara, the Vice President of Research and Analysis for MasterCard Advisors SpendingPulse, said in a statement. "The lower costs often associated with operating online stores provides an opportunity for higher margin sales for retailers while potentially lower prices for consumers. It offers a 'win-win' sales model for retailers and consumers alike."

This continues a recent trend of impressive e-commerce growth, especially when compared to traditional retail sales and revenues of brick-and-mortar stores. According to the Canada Free Press, Canadian retail sales for the first six months indicated a relatively modest growth of 2.2 per cent, which paled in comparison to the 24.9 per cent growth in e-commerce through the same time period.

The August 2012 SpendingPulse report nevertheless suggested that despite the vast growth of online transactions, overall retail sales in the country remained relatively strong. Grocery sales for the month were higher than the average sales in the same month over the past five years. Additionally, department store transactions went up by 10 per cent compared to August 2011, while gasoline sales saw a double-digit year-over-year uptick as well.