A new study by Payments Canada shows that while Canadians are slowly moving away from cash, they still want options, especially the younger generation.
People in Canada between the ages of 18 and 34 enjoy using automatic and invisible payments, as well as spend tracking apps. This demographic wants easier and more convenient ways to pay, and they will favor methods that offer convenience.
About 73 percent of people in the younger demographic are more likely to choose an online company based on how easy it is to check out, as opposed to the 58 percent average for the rest of the population. About half said they would spontaneously purchase something because payment data was already stored in the app or online. Also, about half of the younger people surveyed said they prefer ride-hailing apps over taxis simply because the process is easier.
“The findings validate the relevancy of the payments experience for today’s consumer and the need for a modern payments system that will make payments easy, fast and data-rich,” said Gerry Gaetz, president and CEO of Payments Canada. “This is why the time is now for our payments modernization initiative. We need a system that can set the platform for innovation, while maintaining the high security and resiliency standards Canada is known for.”
There is also a movement away from cash. About 25 percent of young Canadians say they have stopped using cash for low-cost purchases, which is higher than the 17 percent average of all Canadians. About 70 percent say they would move away from cash, and about 42 percent of Canadians use cash less than four times a months, which is up about 20 percent in 2018. For the younger demographic, the contrast is even stronger: 53 percent use cash less than four times a month.
Almost 30 percent of young people want open banking, and about 61 percent have used their phones to deposit a check. About 64 percent use credit cards to make in-app purchases because they say there aren’t any other options.
Many younger Canadians, about 20 percent, say they are more likely to see a payment on their bank statement that they don’t recognize, and 84 percent say this makes them feel anxious.