More Canadians opting for credit cards, mobile payments over cash

TORONTO - Canadian consumers are more inclined to reach for their smartphones and credit cards over bills and coins to make purchases, according to a new study.

See Full Article

Market and consumer information firm GfK conducted an online survey of 1,000 Canadians as part of a larger study on shopping behaviours.

In 2015, only 25 per cent of Canadian transactions were in cash, a decline of two percentage points from 2014. Meanwhile, credit cards accounted for the majority of transactions at 42 per cent, unchanged from the previous year.

"We also saw a number of years ago in this country a very concerted effort by the card companies to get people to start using their cards for smaller payments. That clearly has worked," said Stephen Popeil, vice-president of GfK Canada.

"We're clearly seeing that the use of cash is getting less and less in this country. Is it ever going to disappear? I don't think so, because of the nature of certain economies that are out there. But clearly, what we are seeing now is every year fewer and fewer payments are being made with cash."

Debit cards were at 28 per cent, followed by mobile device payments at three per cent. Each category saw marginal growth of a percentage point each compared to 2014.

In the case of mobile payments, GfK found that they tend to skew to younger and higher-income Canadians, as well as among urban dwellers and those with a higher education. But the high-tech payment method is also catching on with boomers and those of the silent generation born between 1925 and 1945.

"What we saw this year versus last year is a nice little increase in ... perception of these benefits," said Popeil. "More boomers and more older retired Canadians from the silent generation are now acknowledging that mobile payment systems are easier and faster and more efficient."

Despite the convenience afforded by mobile payments, Popeil acknowledged the research revealed concerns over security among consumers.

The survey found 53 per of Canadians agreed they were worried about their personal information when using a mobile payment app, and only 22 per cent agreed they were confident that their mobile device payments were 100 per cent secure.

"We have to figure out as an industry how we're going to communicate safety and security. That's a challenge, in my mind, for the whole fin-tech industry," said Popeil.

"In many cases, how do we convince people that divulging certain things about their financial state via these systems is safe and secure? Once we've cracked that nut we're going to see massive uptake on a lot of this.

"It's got to be more than just biometrics, like you find Apple and some of the phones now with thumbprints. There's got to be some way to convince everyone that these systems are safe and secure."

The polling industry's professional body, the Marketing Research and Intelligence Association, says online surveys cannot be assigned a margin of error as they are not a random sample and therefore are not necessarily representative of the whole population.



Advertisements

Latest Economic News

  • Sears Canada liquidation sales underway across the country

    Economic CTV News
    Everything must go is the mantra at Sears Canada locations across the country as the one-time mainstay of Canada’s retail landscape prepares to close its doors for good. Liquidation sales at the 64-year-old department store chain began on Thursday, following an ill-fated 18-month-long in-store revival effort that failed to gain traction with consumers. Source
  • Canadian cities in the hunt for Amazon's HQ2 — but is it worth the shot?

    Economic CBC News
    It's like a technology-themed reality TV dating show. Suitor Amazon is on the hunt for a North American city to house what it calls HQ2: a second headquarters. The ideal match will tick off most of a wide-ranging list of requirements that covers practical matters, like available buildings and green space, as well as a certain "je ne said quoi" that, for example, helps it attract tech talent. Source
  • Looking back at the Black Monday stock crash, 30 years later

    Economic CBC News
    How long can this nirvana last for investors? The stock market keeps ticking methodically higher into record territory, and the Dow Jones industrial average closed above 23,000 for the first time on Wednesday. It's been nearly 16 months since S&P 500 index funds had a pullback of even 5 per cent over the course of days or weeks, the longest such streak in two decades. Source
  • Have we seen this story before? Black Monday 30 years later

    Economic CTV News
    NEW YORK -- How long can this nirvana last for investors? The stock market keeps ticking methodically higher into record territory, and the Dow Jones industrial average closed above 23,000 for the first time on Wednesday. Source
  • Hurricanes, chilly summer hit sales at Unilever

    Economic CTV News
    THE HAGUE, Netherlands -- Unilever, the consumer products giant that owns brands including Dove, Lipton and Knorr, was buffeted by bad weather in the United States and Europe and a strong euro in the third quarter. Source
  • Cenovus selling Palliser assets in Alberta to Torxen for $1.3 billion

    Economic CTV News
    CALGARY -- Cenovus Energy Inc. (TSX:CVE) says it has agreed to sell its Palliser crude oil and natural gas assets in southeastern Alberta to Torxen Energy and Schlumberger for $1.3 billion. The cash sale is expected to close in the fourth quarter, subject to customary conditions. Source
  • If NAFTA dies, old Canada-U.S. FTA would live on, right? Not so fast, Canada

    Economic CTV News
    WASHINGTON -- It's a refrain frequently heard in Canada: That ending NAFTA wouldn't change much in economic relations with the United States, because the countries could simply pull their older agreement off the shelf, dust it off, and persist in trade without tariffs. Source
  • EDC says Canadian exports seeing big gains on strength of global economy

    Economic CTV News
    CALGARY -- Export Development Canada says exports are growing significantly as both the U.S. and the global economy continue to improve. The crown corporation said in a report out Thursday that overall exports are expected to grow eight per cent in 2017, led by "massive gains" in the commodity space, and four per cent next year. Source
  • Sears managers, execs will still pocket big cash bonuses even though retailer is closing

    Economic CBC News
    Sears Canada will pay a final $2.8 million in retention bonuses to 36 head office staff, even though the retailer's restructuring efforts failed and the company is closing its doors. Promised bonuses were only supposed to be paid in full if the company found a way to survive. Source
  • Government and businesses falling behind speed of technology: report

    Economic CTV News
    TORONTO - A new report suggests the speed of technological advances has become so rapid that it's outpacing the rate at which large Canadian businesses and government institutions can adapt, with the number of jobs threatened by automation ranging from 35 to 42 per cent. Source