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

  • Vancouver's housing market third most expensive in the world: survey

    Economic CTV News
    VANCOUVER -- An annual international survey rates Vancouver as the third least affordable housing market on the planet and it also has a warning about Toronto housing. The 2017 Demographia International Housing Affordability Survey gives Vancouver a rating of 11.8, meaning median home prices are 11.8 times higher than median household income. Source
  • Documents reveal concerns, effects of CPP benefit limits for widows and widowers

    Economic CTV News
    OTTAWA -- Sheila was 62 when her husband died. For three years she continued to work full time as a nurse, collecting survivor benefits under the Canada Pension Plan. When Sheila retired at age 65 and began collecting her CPP retirement pension, she bumped into the financial ceiling the government places on the amounts retirees can receive under the public pension scheme and the survivor pension disappeared. Source
  • Canada should distance itself from Mexico in NAFTA talks: Former U.S. ambassador

    Economic CTV News
    Canada should distance itself from Mexico as U.S. President Donald Trump seeks to abolish or renegotiate the three-nation North American Free Trade Agreement (NAFTA), according to a former Canadian ambassador to the U.S. Derek Burney, who helped negotiate the Canada-United States Free Trade Agreement under then-Prime Minister Brian Mulroney, believes Canada and Mexico’s trade agendas share little common ground. Source
  • Striking Chronicle Herald workers mark one-year anniversary of labour dispute

    Economic CTV News
    HALIFAX -- The union representing striking workers at the Halifax Chronicle Herald are holding rallies throughout Nova Scotia Monday to mark the one-year anniversary of the labour dispute. The Halifax Typographical Union, which went on strike last Jan. Source
  • Why Trump will find it hard to make American economy greater

    Economic CTV News
    WASHINGTON -- President Donald Trump's economic plans are nothing if not ambitious: Annual growth of 4 per cent -- or more. A diminished trade gap. The creation of 25 million jobs over 10 years, including the return of good-paying factory positions. Source
  • Lawsuit: Donald Trump businesses violate U.S. Constitution

    Economic CTV News
    NEW YORK -- A lawsuit Monday alleged that U.S. President Donald Trump is violating the Constitution by allowing his business to accept payments from foreign governments. Trump is violating the so-called emoluments clause in the Constitution that prohibits him from receiving money from diplomats for stays at his hotels or foreign governments for leases of office space in his buildings, according to the suit filed by a legal watchdog group. Source
  • Brookfield moves to simplify North American property arm

    Economic CTV News
    TORONTO -- The largest shareholder of Brookfield Canada Office Properties (TSX:BOX.UN) is offering to buy the rest of the real estate trust's equity for $30.10 cash per unit, a 14.8 per cent premium to Friday's closing price in Toronto. Source
  • Donald Trump signs executive order officially pulling U.S. out of TPP

    Economic CBC News
    The new U.S. president doubled down on some of his campaign promises on Monday, including punitive tax hikes for U.S. companies that ship jobs overseas and sharp reductions in corporate taxes, red tape and regulations. Source
  • Trump pledges border tax, less red tape and trade renegotiations on first weekday in office

    Economic CBC News
    The new U.S. president doubled down on some of his campaign promises on Monday, including punitive tax hikes for U.S. companies that ship jobs overseas and sharp reductions in corporate taxes, red tape and regulations. Source
  • Statistics Canada says wholesale sales gained 0.2 per cent in November

    Economic CTV News
    OTTAWA -- Statistics Canada said Monday that wholesale sales gained 0.2 per cent in November to total $56.9 billion, as a drop in the auto sector limited overall gains for the month. The second consecutive monthly increase fell short of the 0.5 per cent for the month that had been expected by economists surveyed by Thomson Reuters; however, the October figures were revised 0.2 per cent higher than previously reported. Source