In Canada, we've been Chip & Pin for at least 5 years ago. I was actually surprised when I was down in the states and had to grab some socks from Walmart. When I swiped my card (which I'm used to in the states) instead it had me insert it and do the usual chip & pin.
The contactless is for small, quick transactions. Buying coffee, a pack of gum, whatever. While Chip & Pin is more secure, it's also significantly slower. So, to move a lot of people through the line quickly, they do the paypass thing. When you have the lunch rush at Timmies, you need to move people quickly.