Consumer Payments by type (2005)
|
|
Share of Sales
|
|
Cash Payments
|
29%
|
|
Debit Payments
|
28%
|
|
Credit Payments
|
33%
|
|
Other Payment Types
|
10%
|
|
Total Consumer Payment Transactions
|
100%
|
Source: Bank of Canada, 2005 Survey
Canadians are the world’s most avid users of debit cards and Automated Banking Machines (ABMs). Debit cards have surpassed cash as the preferred method of payment for purchases between $25.00 and $100.00. [1]
Comparison of Banking: United States vs. Canada
|
Key Area
|
United States
|
Canada
|
|
Number of Banks
|
Over 8,500
|
Approx. 70
|
|
Nationwide Branching
|
Effectively Limited to Regions
|
Full Nationwide
|
|
Check Usage
|
Very High
|
Medium
|
|
Check Clearing Times
|
1-3 Days
|
Same Day
|
Source: “Commercial Banking in the U.S. versus Canada”, Graziadio Business Report, 2007 Volume 10 Issue 4
Financial Cards Transactions (2009)
| |
Purchase Volume (bn)
|
Share
|
Transactions (million)
|
Share
|
|
Visa (Credit Only)
|
$164.11
|
40.0%
|
1583
|
23.8%
|
|
Interac (Debit)
|
$142.37
|
34.7%
|
3882
|
58.5%
|
|
MasterCard (Credit Only)
|
$82.06
|
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20.0%
|
1012
|
15.2%
|
|
Amex (Charge)
|
$21.74
|
5.3%
|
163
|
2.5%
|
|
Total Cards Transactions
|
$410.28
|
100%
|
6640
|
100%
|
Source: Nilson Report, March 2010, Issue 944; Mercator, July 2010
Credit Cards
Purchase volume:
US$267.91 billion (65% of all card-based transactions) [4]
Number of transactions:
2758 million (42% of all card-based transactions) [5]
Source: Nilson Reports and Mercator Estimates
Number of card accounts:
Approximately 70 million credit card accounts, Visa and MasterCard (2009) [6]
Approximately 15.5 million American Express
Approximately 7.3 million “other” (store-branded, etc)
Total of 90.9 million credit cards [7]
- 39.6% Active
- 70% Pay in full each month
- 29% Turnover rate annually [8]
Delinquency Rates:
|
Fiscal Year Ended
October 31
|
Delinquency Rates %
90 days & Over
|
|
2005
|
0.8%
|
|
2006
|
0.8%
|
|
2007
|
0.9%
|
|
2008
|
1.0%
|
Source: CBA – Visa and MasterCard Issuers
ABM & ACH
ABM Machines
47,000 across Canada (2005) [9]
Paper vs Electronic Items through ACSS (ACH Transactions)
|
YEAR
|
Volume Paper
|
Volume Electronic
|
Value Paper
|
Value Electronic
|
|
2006
|
21.04%
|
78.96%
|
66.62%
|
33.38%
|
|
2007
|
19.60%
|
80.40%
|
64.61%
|
35.39%
|
|
2008
|
17.92%
|
82.08%
|
61.35%
|
38.65%
|
|
2009
|
16.44%
|
83.56%
|
57.55%
|
42.45%
|
|
2010
(Jan-Jun)
|
15.96%
467,425,116 transactions
|
84.04%
2,461,187,859 transactions
|
55.58%
$1,394,602,821
|
44.42%
%1,114,379,167
|
Source: CBA
Cash
Percent of Sales
29% of Sales[10]
[1] “Electronic Cash Payments: Canada Loves its Debit Cards, but Will the Cashless Revolution Happen in the U.S.?”, informIT, July 22, 2005
[2] “The Canadian Credit Card Market: Tough Sledding”, Mercator Research, July 2010
[3] “The Canadian Credit Card Market: Tough Sledding”, Mercator Research, July 2010
[4] “The Canadian Credit Card Market: Tough Sledding”, Mercator Research, July 2010
[5] “The Canadian Credit Card Market: Tough Sledding”, Mercator Research, July 2010
[6] “The Canadian Credit Card Market: Tough Sledding”, Mercator Research, July 2010
[7] “Canadian Credit Card Market Facts & Figures”, RateSupermarket.ca Blog, September 2010
[8] “Canadian Credit Card Market”, idea associates, March 2008
[9] “Electronic Cash Payments: Canada Loves its Debit Cards, but Will the Cashless Revolution Happen in the U.S.?”, informIT, July 22, 2005
[10] Bank of Canada, 2005 Survey
