Canadians Like Mobile Payments, Citing Convenience

New research released by Moneris Solutions revealed that there is a growing interest in mobile payments among Canadians.

By 2030, it’s expected that cash purchases will account for just 10 percent of money spent in the country, resulting in an almost 70 percent decline in the usage of cash. A shift towards the use of digital payment technologies, such as mobile wallets, may help support the rise of contactless transactions in Canada.

“More Canadians, especially younger ones, are tapping their cards to pay as opposed to inserting them into payment terminals,” Rob Cameron, chief product officer at Moneris, explained. “We’ve seen the number of contactless transactions more than double this year, which is a strong indication that mobile payments are going to see a huge lift.”

According to Moneris’ data, 46 percent of respondents aged 18-34 said they would be more likely to use a mobile wallet if one were made available for their credit card, while 47 percent showed interest in using a mobile wallet if it were accessible on their current mobile device.

Last month, TSYS’ annual Canadian Consumer Payment Choice Study showed a continued strong preference for credit, debit and cash among Canadians, even though there are starting to be glimmers of mobile payments adoption.

While the enthusiasm for mobile payments seems to be increasing, credit card payments continue to dominate for online and larger purchases and cash transactions are still popular for small transactions, such as quick-service restaurants and coffee shops.

The main driver of credit card choice for consumers continues to be rewards, with over 60 percent citing that rewards influence their credit card preference. Interest rates and fees are secondary influencing factors. Whether a consumer chooses to pay with a credit or debit card depends on the type of purchase; credit is preferred for online and larger purchases, while debit is used more for daily spending.