Payments
Canadian consumers embracing digital payments
July 19, 2023
Young consumers in Canada are rapidly embracing non-traditional digital payments much more than their older counterparts in the 55 and older range.
That's a prime finding from research released by the Canadian Prepaid Providers Organization.
The survey, which examined the usage and satisfaction levels of 1,000 Canadians with both traditional payment methods (such as credit, debit, prepaid and cash) and new offerings (such as digital wallets and mobile payments) highlights a behavioral shift among consumers toward a multi-banked approach, according to a press release. Canadians are using multiple payment and transaction methods for different aspects of their lives, while also seeking non-traditional financial services in favor of more mobile payment options.
"We are pleased to see the shift in consumer satisfaction toward a wide array of digital financial services and tools. Prepaid is a driver of this trend, providing a secure, nimble platform to build and innovate financial services upon," CPPO Executive Director Jennifer Tramontana said in the release. "As digital transformation reshapes the Canadian consumer payments landscape, the CPPO remains committed to supporting innovation, promoting consumer choice and advocating for the continued evolution of secure, convenient and inclusive payment methods."
Additional insights include:
- Choice, security and value rank among the top three reasons why Canadians have made a switch or indicate a desire for more payment options.
- Canadians aged 54 and under use credit and cash less frequently, opting for digital wallets, prepaid options and other digital payment methods at higher rates compared to those aged 55 and above.
- Prepaid has surged in popularity and satisfaction as Canadians embrace digital payment methods for new use cases, including buy now, pay later, earned wage access for gig and contract workers, third-party delivery services, digital-first accounts for transacting and saving and digital wallets for gaming and sports betting.
- Security remains a concern for consumers, but prepaid is viewed as the safest payment option. Approximately 60% of consumers express fear using their credit and debit cards online, leading to a growing adoption of prepaid cards for online purchases due to perceived enhanced security measures.
