Credit Cards Are The Favourite Payment Method of Canadians
TSYS announced the results of its 2015 Canadian Consumer Payment Choice Study. The online survey of over 1,200 Canadians, found that when given a choice, 46 percent of Canadian consumers prefer to pay using their credit cards. That’s a 34% increase over 2014.
“Consumers have more payment options than ever before due to the continuing proliferation of new technology and non-traditional companies entering the payments industry,” said John Dale Hester, group executive of Relationship Management at TSYS. “Our goal from this survey is to provide relevant information to help our clients with their payment strategies, and to create a useful reference tool for other participants in the Canadian payments industry.”
The research also found that offers and rewards are highly desired and the biggest driver of cardholder behavior. Survey participants consistently responded that rewards and offers from their card would change cardholder behavior.
The survey also found that:
- For consumers with multiple credit cards, the access to rewards was the feature that incented them to use one card more than another. This was followed by finance charge/interest rate and then card brand (Visa, MasterCard, and American Express)
- Older consumers and consumers with higher incomes typically have multiple credit cards in their wallets. It is likely that their most-used card offers the best rewards program and that they use that card almost exclusively to take full advantage of the available rewards.
- Cash was the leading payment preference in locations which represented smalldollar transactions, and in discount stores.
- Credit and debit card ownership was followed by PayPal®, with 62 percent of respondents indicating they currently have a PayPal account. This was followed by 20 percent of respondents indicating they currently own a store credit card which can only be used at one store or store chain (e.g, supermarket, big-box retailer, department store).
- The study also revealed how consumers prefer to communicate with their bank, as well as a growing adoption of the mobile channel as a part of the payment process.
- Consumers are interested in using their mobile phones to manage and protect their accounts. Nearly 30 percent of survey respondents indicated they were highly interested in the ability to use a mobile phone to stop an unauthorized transaction. Additionally, 25 percent of respondents found the ability to instantly view card transactions highly interesting.
- Nearly 50 percent of survey respondents indicated they were willing to receive coupons or special offers based on the information their bank collected about their purchase behavior.