2018 Canadian Consumer Payment Study
Table of Contents
359 10 12 18 21 22 23
25 32 35
41
4446 46
Introduction
Key Insights
Findings & Insights
Payment Types
Payment Preferences
Prepaid Cards and P2P Payments
Contactless
Actions Taken in the Last Year
Most Attractive Card Features and Details on Rewards
Mobile Phone Usage and Preferences
Smart Speakers and Connected Payments
Marketing, Communications, Offers and Banking Activity
Security
Conclusion
Appendix
Respondent Demographics
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F I N D I N GS & I N S I G H TS
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I N T R O D U CT I O N
Improving customer experience starts
with monitoring the fast-changing
technology landscape — and its impact
on consumer behavior. As such, tracking
key attitudes and activities regarding
technology is the focus of this year’s
Canadian Consumer Payment Study.
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I N T R O D U CT I O N
For the fifth year in a row, we’ve surveyed Canadian consumers to track important trends in how they’re thinking, feeling and going about making payments. We asked a variety of questions about how customers pay for different types of purchases, why they use one credit card over another, how they redeem their rewards points and how comfortable they are with mobile offerings. We also asked what features they would be most interested in using, how open they are to emerging technologies such as person-to-person (P2P) payments and ‘smart speakers’ like Amazon’s Echo, and how concerned they are with the security of their personal and financial information. The responses provide valuable insights into consumers’ perspectives that can help financial institutions make more informed decisions about new product offerings, channels for customer communication and marketing programs.
This year, we found that Canadian consumers continue to love their payment cards. According to The Nilson Report, total general purpose cards (debit and credit) transaction volumes were up 8.7 percent between 2016 and 2017, and the number of actual cards grew by 4.1 percent during the same period. Purchase volume also increased and was up 9.5 percent in that time frame.
Consumer interest in mobile and emerging technologies is also on the rise. While traditional payment and purchase channels remain strong, there is a growing interest in mobile, which means it will be critical to any new service or offering. Emerging technologies are also gaining ground, and the use of email and text continues to grow. Consumer willingness to embrace new technologies depends on whether they see it as providing value, being easy to use and secure. Our participants were definitely aware of security issues ― many have made changes to their email and online merchant accounts over the past year as a result ― but they don’t seem to be overly concerned.
Interest in new payment options is also rising; however, consumers still trust their own financial institution more than any other organizations in the payment ecosystem. To remain competitive with these new players, financial institutions will need to pay attention to customer communication and relationship-building strategies. Those that invest in creating increasingly positive experiences for their customers across all phases of the cardholder life cycle will be rewarded with increased engagement.
Our survey included 1,020 Canadian consumers. Participants were required to be more than 18 years of age, to have at least one credit card and one debit card and not work for a financial institution. We also took steps to ensure that the survey sample reflected the age and gender distributions of the Canadian population.
We hope you will find the results useful as you work on existing strategies or projects ― and develop new ones.
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Key Insights
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K E Y I N S I G H TS
2Consumers are ready for mobile.Although the use of mobile for payments is still relatively low, consumers expect to rely more on mobile payment options within the next couple of years. More than 50 percent of those surveyed said they are familiar with merchant apps, and 33 percent of those who are familiar with the merchant apps indicated they have already made a purchase in this manner. Currently, consumers’ top two uses for mobile are storing loyalty/rewards cards on their phones and viewing transactions instantly. Considering the number of consumers with smartphones and wireless services, it’s no surprise that all industries and companies are continuing to focus heavily on the digital landscape.
1Canadians continue to love their credit cards.For the fourth year in a row, consumers ranked credit cards as their No. 1 favorite payment method. In fact, this year, credit led in every category except for coffee shop purchases and payments to individuals. For the first time since our study began, consumers from all age groups and income levels said they prefer paying for purchases with credit cards. Sixty-seven percent of our respondents stated they have two or more credit cards, which makes it more important than ever to understand what motivates consumers to use one credit card over another. According to Payments Canada (https://www.payments.ca) Canadians are using credit for increasingly larger percentages of their monthly spending (“Canadian Payment Methods and Trends 2017”). With the rising popularity of credit, the percentage of consumers using debit cards and cash has decreased.
Every payments player wants to maintain a competitive edge. And they can accomplish this goal by understanding what consumers want, integrating useful new technologies, maintaining a degree of personalized relationships and creating an exceptional customer experience throughout the purchase process.
Six insights from our study:
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K E Y I N S I G H TS
4As technology evolves, consumer interest in new payment methods is growing.Over the last couple of years, person-to-person (P2P) services, which enable consumers to easily pay other individuals, have become easier to use and more widespread. Although cash continues be the preferred way to pay individuals, 55 percent of respondents indicated they have used a P2P service. Canadian consumers are also very familiar with contactless payments. More than 95 percent of respondents were aware of the capability, and 85 percent have used it. We also believe payment usage will increase for connected devices like ‘smart speakers’ (such as Amazon’s Echo, Apple Home Pod, etc.) as a larger percentage of them gain payment capabilities.
3The top reason for using one card over another? Rewards. For the fifth year in a row, loyalty or rewards programs came in as the top influencer when consumers choose between multiple credit cards. Ninety percent of our respondents selected rewards as a feature that causes them to use one credit card over another. This sentiment was consistent across all age groups. Rewards are most often redeemed for merchandise, with cash-back coming in at a close second. Real-time rewards are gaining traction, with an increasing number of card issuers beginning to offer this option. Consumers said they would like to be able to use their loyalty and rewards points for immediate discounts when making a purchase.
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K E Y I N S I G H TS
6Security matters, but consumers are not overly worried.The almost daily proliferation of news reports on security failures and data breaches prompted us to add questions this year to track consumer attitudes about the safety of their personal and financial information. While many respondents said they’d changed their passwords for email, online banking and retail websites (in addition to checking their credit reports for irregularities), 70 percent said they’re “not very” or only “somewhat” concerned about their data being stolen. This could be because the majority also believes the bank is responsible if their account or personal information is stolen and then used to make fraudulent purchases. They also seem to understand and are comfortable being asked for more information to verify their identities and to obtain new credit cards or loans.
5Consumers want to talk, especially if there’s a problem or an opportunity.Some 43 percent of our respondents felt it was important to have all of their accounts with the same financial institution. Most use the internet or mobile banking apps for regular interactions with their financial institution. However, a large percentage, 69 percent, still want to call customer service and talk to a representative if they have an issue with their card. When it comes to learning about new products and services, 83 percent of respondents were open to receiving marketing communications, although preferences around the frequency varied. New products and services that address identity theft and credit scores/ratings were what potentially interested consumers most.
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Findings & Insights
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F I N D I N GS & I N S I G H TS
More consumers today are choosing to use credit cards for purchases and payments, but debit cards, cash and alternative electronic methods are also popular options.
T H E N U M B E R O F CO N S U M E RS W I T H M U LT I P L E CR E D I T CA R DS I S G R OW I N G .
This year, 67 percent of respondents said they have two or more credit cards, compared to 63 percent in 2017 and 61 percent in 2016. (The percentage of consumers with only one debit card remained the same.) Given this steadily growing trend, it’s important to understand what motivates consumers to use one card over another.
Payment Types
Exhibit 1:Number of Credit and Debit Cards
0% 80%40% 60%20%
One
Two
Three
Four or more2%
4%
25%
69%
16%
18%
33%
33%
Debit Credit
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F I N D I N GS & I N S I G H TS
PayPal was once again the top alternative electronic payment type following credit and debit cards. This year, 49 percent of our respondents indicated they have a PayPal account, with other payment types (listed in Exhibit 2), trailing significantly behind.
PayPal was once again the top alternative electronic
payment type.
Exhibit 2:Other Payment Cards/Accounts Owned
0% 60%40%20% 50%30%10%
PayPalaccount
Store credit card
Other
Prepaid card
Store debit card
Digital or virtual currency
account
49%
21%
9%
7%
4%
2%
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F I N D I N GS & I N S I G H TS
Payment PreferencesCR E D I T US E I S G R OW I N G A M O N G A L L AG E A N D I N CO M E G R O U PS A N D I N A L M OST E V E RY CAT E G O RY .
Credit was the overwhelming favorite again this year and the preferred top method of payment for consumers choosing from a list that included credit cards, debit cards, cash and a number of other options. Although the preference for cash decreased from last year, we believe some consumers continue to use it because it’s both anonymous and widely accepted. Exhibit 3 shows preferences over the past four years.
Exhibit 3:Most Preferred Payment Type
0% 80%60%40%20%
2018
2017
2016
2015
60%
28%
8%
44%
38%
13%
47%
33%
15%
46%
34%
14%
Debit card CashCredit card
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F I N D I N GS & I N S I G H TS
Noting the significant increase in the use of credit, we wanted to examine variations in preference across different age and income segments. Exhibits 4 and 5 reflect the breakdown of this information.
In previous surveys, debit cards were the preferred payment method for consumers in the 18-24-year-old group. This year, however, credit was the preferred payment type for all age groups. See Exhibit 4.
For the first time in five years, credit was the most preferred payment type across all income groups. In the past, only those with household incomes greater than $50,000 preferred credit. Given the significant increase in the use of credit, however, it’s not surprising that consumers who had previously preferred debit have now shifted to credit. See Exhibit 5.
Exhibit 4:Preferred Payment Type by Age
Exhibit 5:Preferred Payment Type by Household Income
Credit card
18 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65 or olderMost PreferredPayment Type
Age range
Debit card
Cash
56%
29%
11%
63%
27%
7%
55%
35%
8%
60%
28%
7%
58%
28%
10%
65%
22%
9%
Credit card
Less than $24,999
$25,000 - $49,999
$50,000 - $74,999
$75,000 - $99,999
$100,000 - $149,999
$150,000 or more
Most PreferredPayment Type
Total household income
Debit card
Cash
49%
30%
15%
51%
35%
10%
59%
27%
9%
64%
28%
7%
67%
22%
6%
70%
25%
3%
Prefer not to answer
59%
25%
10%
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F I N D I N GS & I N S I G H TS
CR E D I T R U L E S F O R M OST STO R E A N D R E STAU R A N T P U R CH AS E S , E XCE PT I N CO F F E E S H O PS .
Credit continued to be the top payment option over debit and cash for buying groceries, gasoline and department store purchases. There was also a shift from debit to credit in the top spot for discount stores.
Exhibit 6:Preference by Store Type
0% 70%60%40%20% 50%30%10%
Department store
Discount store
Gas station/pump
Supermarket/ grocery store
57%
31%
8%
62%
23%
6%
63%
25%
5%
37%
25%
29%
Debit CashCredit
Exhibit 6 shows how the top three preferred payment types compare for each of the store categories.
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F I N D I N GS & I N S I G H TS
This year, credit also took the lead as the favored method of payment at fast-food restaurants. Last year, debit was preferred in this category, and cash led the year before. For coffee shops, however, cash is still the top method of payment ― but credit is gaining. Exhibit 7 includes details for preferred payment options at restaurants.
Exhibit 7:Preference by Restaurant Type
0% 70%60%40%20% 50%30%10%
Dine-in restaurant
Fast-food restaurant
Coffee shop
41%
28%
27%
61%
25%
10%
30%
20%
38%
Debit CashCredit
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F I N D I N GS & I N S I G H TS
THE PREFERENCE FOR CREDIT EXTENDS TO PAYING ONE-TIME AND RECURRING BILLS AS WELL AS TO IN-STORE AND ONLINE SHOPPING.
Credit remained the top payment option for both one-time and recurring bills. Exhibit 8 shows how the gap between credit and debit has widened this year, mirroring the overall trend toward credit. We believe the ‘Other’ category represents the use of online bill payment services available at the consumers’ financial institutions. Exhibit 8 breaks down bill payment preferences between credit, debit and other methods.
Credit continues to dominate the online shopping and travel categories, as it has since this study began. PayPal significantly trailed credit for the second spot. In the online travel purchase area, a large number of respondents (24 percent) selected ‘N/A’ ― likely due to the fact that they don’t use online travel sites (or even travel at all). See Exhibit 9.
In previous years, we reported that the choice of using credit for online purchases reflected consumers’ security concerns and their preference for using “someone else’s money” at locations where they feel there could be a problem. However, this year, credit is strong across all types of purchase scenarios.
Credit continues to dominate
the online shopping and travel
categories, as it has since this
study began.
Exhibit 8:Preference by Bill Payment
Exhibit 9:Preference by Online Categories
0% 60%50%40%20% 30%10%
Pay bills -one time
Pay bills -recurring
45%
23%
17%
42%
22%
23%
Debit OtherCredit
0% 80%40% 60%20%
Online travel
Online shopping
71%
12%
8%
69%
2%
24%
PayPal N/ACredit
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F I N D I N GS & I N S I G H TS
Once again, we asked our survey respondents to tell us which payment form they believe is safest for both in-store and online purchases. Exhibits 10 and 11 show how the results compare over the past three years.
For in-store purchases, Exhibit 10 shows that credit cards remained in the number one position, followed by cash and then debit cards. In keeping with the overwhelming preference for credit we’ve observed in this year’s study, the percentage of respondents who selected credit cards as safest for in-store use was higher this year.
In Exhibit 11, you’ll see that credit cards were also selected as safest for online purchases, by a higher-than-normal percentage. PayPal, in
second place, was significantly down this year due to the strong preferences shown for credit cards. Prepaid cards had a fairly good showing, which makes sense given the top-stated reason consumers use these reloadable prepaid cards is for online purchases.
Exhibit 10:Safest Payment Type for In-Store Purchases
Exhibit 11:Safest Payment Type for Online Purchases
0% 60%50%40%20% 30%10%
Credit card
Cash
Debit card
46%
35%
40%
23%
30%
29%
21%
28%
25%
2017 20162018
0% 80%60%40%20%
Credit card
PayPal
No preference
Prepaid
Debit card
58%
44%
47%
23%
36%
33%
9%
8%
9%
8%
8%
6%
2%
4%
5%
2017 20162018
0% 60%50%40%20% 30%10%
Credit card
Cash
Debit card
46%
35%
40%
23%
30%
29%
21%
28%
25%
2017 20162018
0% 80%60%40%20%
Credit card
PayPal
No preference
Prepaid
Debit card
58%
44%
47%
23%
36%
33%
9%
8%
9%
8%
8%
6%
2%
4%
5%
2017 20162018
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F I N D I N GS & I N S I G H TS
Prepaid Cards & P2P Payments/Payments to Individuals
R E LOA DA B L E P R E PA I D CA R DS
Although the number of respondents who had reloadable prepaid cards continued to be low at only 2 percent, this payment method is still a hot topic of interest and discussion in the Canadian market. Payments Canada “Canadian Payment Methods and Trends: 2017” noted that prepaid transactions are the fastest-growing point of sale (POS) transaction type, with a 7 percent year-over-year growth in value. Exhibit 12 measures consumer interest, and Exhibit 13 details the top reasons consumers either have or want to have a reloadable prepaid card.
About a third of our respondents indicated they would be interested in obtaining a reloadable prepaid card. As in other areas, the high usage of credit appears to have impacted several of this year’s trends. Exhibit 12 shows how respondents’ interest in obtaining a reloadable prepaid card has shifted since last year.
Exhibit 12:Interest in Obtaining a Reloadable Prepaid Card
0% 50%40%30%20%10%
No
Yes
Unsure
Already have
35%
27%
32%
37%
30%
35%
2%
1%
20172018
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F I N D I N GS & I N S I G H TS
The reasons consumers use a reloadable prepaid card have remained relatively unchanged since last year. A large number of respondents (79 percent) who already had a card or who were open to getting one in the future said they were primarily interested in this option to protect their debit and credit cards from fraud when making
Exhibit 13:Purpose to Use Reloadable Prepaid Card
0% 100%80%60%40%20%
Online purchases
Travel
Instead of a banking account
To provide funds for my child
For my small business
Other
79%
81%
61%
51%
21%
19%
21%
17%
6%
7%
2%
3%
20172018
online purchases ― and to better manage their spending. The second most-popular use for a prepaid card was travel spending, with other purposes trailing significantly behind. Exhibit 13 shows how respondents rated a variety of potential purposes over the past two years.
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F I N D I N GS & I N S I G H TS
CAS H A N D CH E Q U E S A R E ST I L L I N P L AY AS P R E F E R R E D M E T H O DS O F PAY M E N T TO I N D I V I D UA L S .
P2P payment options have exploded over the last several years. So this year, we expanded our questions to explore our participants’ awareness and adoption in this realm. Cash remained the overwhelming favorite for making payments to individuals, coming in at 44 percent. However, that’s slightly down from last year’s 48 percent. Cheques, which haven’t been mentioned previously in this report, held steady at 12 percent for both 2017 and 2018. Exhibit 14 shows that despite consumers’ multi-year migration to electronic payments in most other areas, when it comes to making payments to individuals, cheques and cash remain strong contenders.
We wanted to learn more about consumers’ awareness of and experiences with P2P services. Exhibit 15 shows that a significant number of respondents (55 percent) indicated they had used a P2P service, which is up from 48 percent last year.
Only 17 percent had never heard of P2P, and 28 percent were aware but had never used it.
Only 16 percent of respondents who had never heard of or never used a P2P service said they would be “likely” or “very likely” to use one in the next year. However, the growth trajectory for P2P services continues to look very strong.
The growth trajectory for
P2P services continues to look
very strong.
Recently, even social media channels like Facebook Messenger, Siri and others have begun to enter the P2P arena. Even though news articles and press releases continue to highlight the convenience, our survey didn’t reflect this. Of our respondents who either currently use a P2P service or are likely to do so, only 13 percent indicated they’d be “likely” or “very likely” to use one of these social media channels to send a P2P payment.
44%Cash
12%Other
12%Cheque
55%Yes, I have usedP2P payments
28%No, but I wasaware of this
method
17%I have neverheard of P2P
payments
Exhibit 14:Three Top Preferred Payment Methods to Individuals
Note: Four other payment options make up the other 32%.
Exhibit 15:Usage/Awareness of P2P Services
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F I N D I N GS & I N S I G H TS
ContactlessAWA R E N E SS A N D US E O F CO N TACT L E SS PAY M E N TS I S CO N T I N U I N G TO G R OW .
In March of 2018, Visa Canada released the results of its survey on contactless and other new payment forms. In that survey, 52 percent of respondents identified themselves as ‘regular users’ of contactless cards. Furthermore, Visa Canada says 48 percent of Canadian POS transactions (as of December 2017) were contactless (https://www.digitaltransactions.net/canadians-embrace-contactless-paymentsbut-are-cautious-about-other-new-payment-forms).
This is the second year we’ve included questions in our survey about contactless payments. We wanted to know more about our participants’ awareness and behavior regarding the contactless feature on their cards. Exhibit 16 shows 95 percent of respondents said they were aware of the feature in 2018, an increase from 89 percent in 2017.
95 percent of respondents are
aware of the contactless feature
on their card.
Exhibit 16:Awareness of Contactless Feature
0% 100%80%60%40%20%
Yes
No
95%
89%
5%
11%
20172018
Of those respondents who were aware of the contactless feature, 86 percent indicated they had made a purchase using the ‘tap’ option (compared with 79 percent last year). When we asked the remaining participants why they hadn’t used the ‘tap’ option, 55 percent chose the reply, “I am not comfortable tapping.” This number is very consistent with last year’s results.
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F I N D I N GS & I N S I G H TS
Actions Taken by Consumers in the Last YearWe wanted to know what kinds of actions consumers took over the past year related to making purchases, sending money, using mobile services and overall money management. The two most significant changes in behavior were in mobile categories and are highlighted in Exhibit 17.
Exhibit 17:Actions Taken in the Last Year
M O R E P E O P L E A R E US I N G A P PS T H AT STO R E T H E I R CA R D I N F O R M AT I O N .
We also noticed a fairly significant decline in PayPal accounts being opened. This could be due to the fact that so many people are already using PayPal. Exhibit 17 compares this year’s responses to last year’s.
I made a purchase using a credit card I have on file with the online retailer I shop with most often.
I paid down debt.
I began saving more.
I sent money to another person utilizing a P2P service separate from my bank’s online bill pay (e.g., Interac e-Transfer).
I registered my credit card with an online retailer (e.g., Amazon, Google Play, iTunes, etc.).
A merchant or individual used a mobile phone or tablet as a terminal to accept my payment (e.g., debit, credit, prepaid, etc.).
I opened a new credit card to take advantage of the rewards being offered for travel, merchandise, etc.
I opened an account with PayPal to make online or in-store purchases.
I paid using a mobile phone app that stores my card information.
2017
64%
59%
57%
48%
44%
22%
24%
33%
2018
64%
59%
59%
46%
41%
32%
27%
22%
13%21%
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F I N D I N GS & I N S I G H TS
Most Attractive Card Features and Details on RewardsT H E I M P O RTA N CE O F LOYA LT Y / R E WA R DS P R O G R A M S A N D L E SS E N I N G I N F LU E N CE O F F I N A N CE CH A R G E S .
The growing trend of having multiple credit cards makes it especially important to keep track of what drives consumers’ decisions to use one card over another. For the fifth year in a row, rewards led the category as a top influencer for 90 percent of respondents. What surprised us this year was a shift in the importance of finance charges. Last year, this category was the second-highest feature, selected by 57 percent of respondents. This year, it was tied for third place with only 44 percent of the respondents listing finance charges/interest rates as an influencing factor. Exhibit 18 shows the breakdown for 2017 and 2018.
Digging deeper, we wanted to see how these responses varied by age and income. All age groups and income levels consistently chose rewards as the most attractive feature. However, we did start seeing some differences in how respondents felt about the second-ranked categories. With every income level, card brand was the second most important influencer. But for people under the age of 44, that second-place influencer was finance charge/interest rate and payment flexibility. It’s possible that younger consumers are more concerned about finance charges and payment options because they’re more likely to carry balances than those in the older age groups, who are more likely to pay off their cards in full.
Exhibit 18:Features That Cause Consumers to Use One Card Over Another
0% 100%80%60%40%20%
Payment options/
flexibility
Finance charge/
interest rate
Customer service
provided by the issuer of
my card
Card brand (e.g., American
Express, Mastercard,
Visa)
Type of rewards
39%
46%
44%
57%
44%
52%
59%
52%
90%
87%
20172018
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F I N D I N GS & I N S I G H TS
CA R D H O L D E RS P R E F E R M E R CH A N D I S E A N D CAS H - BACK W H E N R E D E E M I N G LOYA LT Y P O I N TS .
Last year, 65 percent of respondents reported having a loyalty/rewards program attached to their most preferred credit card. This year, that number grew to 78 percent reflecting the overall growth in the preference for using credit cards. Given the overwhelming strength of rewards as an influencer, we asked questions to explore how people use their loyalty/rewards points.
Last year, cash-back was number one. This year, we found that the majority of consumers most frequently redeem their rewards points for merchandise (59 percent), followed by cash-back (56 percent), gift cards (54 percent) and travel (53 percent). Less frequently, a smaller number ― 27 percent of respondents ― redeem their points for experiences, which is consistent with the results from previous years. Exhibit 19 shows the breakdown of categories by frequency.
Exhibit 19:How Frequently and for What Rewards Are Redeemed
0% 80%40% 60% 70%20% 30% 50%10%
Never
Once a year or less
A few times a year
More than once a month
About once a month
2%
3%
6%
1%
6%
3%
4%
7%
2%
6%
7%
20%
20%
15%
16%
15%
27%
25%
34%
28%
73%
46%
41%
47%
44%
Gift cardsExperiences Merchandise Travel Cash-back
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F I N D I N GS & I N S I G H TS
Mobile Phone Usage and PreferencesAccording to Newzoo’s 2018 Global Market Report, 72.1 percent of Canadians own a smartphone (https://newzoo.com/insights/rankings/top-50-countries-by-smartphone-penetration-and-users/). And 90 percent subscribe to wireless services (www.cwta.ca/facts-figures). Across the board, Canadian industries and companies are heavily focusing on the digital landscape. Many have appointed chief digital officers to spearhead organizational efforts in this area, as mobile services have become key strategic components in both attracting and retaining business. It seems like we see almost daily news reports about companies that are closing or entering bankruptcy, at least in part, because they failed to adapt quickly enough to changing consumer preferences for online and mobile services. This is true for financial institutions and payment companies as well.
Mobile services are increasingly
important in conducting
daily activities, particularly
with how consumers manage
their accounts.
2 0 1 8 CA N A D I A N CO N S U M E R PAY M E N T ST U DY 26
F I N D I N GS & I N S I G H TS
S M A RT P H O N E US E RS L I K E ACCO U N T S E CU R I T Y F E AT U R E S A N D I N STA N T R E WA R DS .
We asked our survey participants which features they would be most interested in using on their mobile phones. The top three were: being able to immediately stop a transaction not made by them (61 percent), being able to use loyalty/rewards points for discounts at the time of a purchase (53 percent), and being able to turn off a payment
card to prevent unauthorized use (51 percent). These responses reflect what we’ve seen already in regard to consumers’ growing desire to better manage their cards and use rewards points in real time. This year’s responses also reflect that consumers are more open to receiving instant offers and promotions. Exhibit 20 shows how this year’s responses compared to last year’s.
Exhibit 20:Mobile Features: Moderate or Higher Interest
0% 70%60%40%20% 30% 50%10%
Use your phone to immediately stop a transaction that was
not made by you
Instantly view transactions made with your debit or credit cards
Keep all your loyalty/rewards cards on your phone so you
can present the right one when checking out
Alerts sent to your mobile phone each time a purchase is
made with a card
Ability to use your phone to turn your payment card on or off to
prevent unauthorized use based on various criteria
Ability to use your card's loyalty/rewards points for immediate discounts when
making a purchase
Use a mobile app to change the PIN on your
debit or credit card
Receive instant offers and promotions for the store
you are visiting
Store your government-issued identification, such as a
driver's license, on your phone
Use a wearable device, such as a smart watch, to
make a payment
40%
36%
18%
18%
28%
28%
29%
31%
44%
41%
61%
60%
47%
49%
51%
42%
53%
56%
47%
36%
20172018
2 0 1 8 CA N A D I A N CO N S U M E R PAY M E N T ST U DY 27
F I N D I N GS & I N S I G H TS
E A R LY M O B I L E A D O PTO RS A R E V I E W I N G T R A N SACT I O N S I N STA N T LY A N D STO R I N G LOYA LT Y / R E WA R DS CA R DS .
We also asked our survey participants which mobile features they were already using. Given the relatively early stages of many of these features, the percentage of those who already use the features currently lags behind consumer
Exhibit 21:Mobile Features Consumers Already Use
Alerts sent to your mobile phone each time a purchase is made with a card
Use a wearable device, such as a smart watch, to make a payment
Store your government-issued identification, such as a driver’s license, on your phone
Use a mobile app to change the PIN on your debit or credit card
Keep all your loyalty/rewards cards on your phone so you can present the right one when checking out
Use your phone to immediately stop a transaction that was not made by you
Instantly view transactions made with your debit or credit cards
Ability to use your phone to turn your payment card on or off to prevent unauthorized use based on various criteria
Ability to use your card’s loyalty/rewards points for immediate discounts when making a purchase
Receive instant offers and promotions for the store you are visiting
2017
N/A
1%
2%
1%
4%
1%
5%
1%
2018
4%
1%
1%
2%
7%
2%
9%
2%
N/A5%
2%2%
interest. The most-used feature was instantly viewing transactions made by debit or credit cards (9 percent). Following that was keeping loyalty/rewards cards on the phone to use when making a purchase (7 percent). Mobile features present strong opportunities for issuers, who can provide these types of mobile services to their cardholders. Exhibit 21 compares responses for 2017 and 2018 (where the data was available).
2 0 1 8 CA N A D I A N CO N S U M E R PAY M E N T ST U DY 28
F I N D I N GS & I N S I G H TS
US E O F M E R CH A N T A P PS A N D M O B I L E WA L L E TS A R E O N T H E R I S E ― PA RT I CU L A R LY W I T H YO U N G E R CO N S U M E RS .
Consumer familiarity with using merchant apps to pay for goods and services rose 9 percentage points this year. When we examined how the responses varied by age, we discovered significant differences. For those in the 18-24-year-old group, 80 percent of respondents said they were familiar with the process, compared to just 36 percent of those 65 or older. Exhibit 22 shows responses from the last two years.
Exhibit 22:Familiarity With Using Merchant Apps to Pay for Goods and Services
Exhibit 23:In-App Purchases Made (Answered by Those Who Had Familiarity With the Process)
Yes
No
2017
47%
53%
2018
56%
44%
I have made an online purchase using a merchant’s mobile app.
I have made an in-store purchase using a merchant’s mobile app.
2017
27%
18%
2018
33%
19%
We also wanted to know if our survey participants who were familiar with merchant apps had actually used the app to make a purchase. In Exhibit 23, you’ll see that between 2017 and 2018, the number of participants using a merchant app to make an online purchase grew from 27 percent to 33 percent. However, there was no significant change in the percentages for in-store merchant app purchases. Based on earlier responses, offering consumers the ability to redeem rewards within the merchant app would likely create more interest for both in-store and online purchases.
2 0 1 8 CA N A D I A N CO N S U M E R PAY M E N T ST U DY 29
F I N D I N GS & I N S I G H TS
For the past three years, we’ve included a section on mobile wallets to discover how willing our participants are to load debit and/or credit cards onto their phone for use in making payments. According to the responses, consumer reluctance is declining dramatically. This more open interest in mobile wallets is supported by the fact that the number of participants who said they would never
load a debit card into a mobile wallet decreased from 42 percent in 2016 to 27 percent in 2018. Not surprisingly, respondents in the 18-24-year-old age group were more likely to load a card than those in older groups. Exhibit 24 and Exhibit 25 track the changes over the past three years in participants’ likelihood to load debit and credit cards.
Exhibit 24:Likelihood of Loading a Debit Card Into Mobile Phone or Wallet
Exhibit 25:Likelihood of Loading a Credit Card Into Mobile Phone or Wallet
0% 50%40%20% 30%10%
Never
Not likely
Neutral
Definitely
Likely
Already loaded
20172018 2016
0% 50%40%20% 30%10%
Never
Not likely
Neutral
Definitely
Likely
Already loaded
27%
29%
20%
15%
5%
5%
26%
27%
20%
17%
5%
6%
34%
28%
18%
13%
4%
4%
33%
26%
18%
14%
5%
5%
42%
22%
16%
12%
6%
2%
41%
21%
15%
14%
6%
3%
20172018 2016
0% 50%40%20% 30%10%
Never
Not likely
Neutral
Definitely
Likely
Already loaded
20172018 2016
0% 50%40%20% 30%10%
Never
Not likely
Neutral
Definitely
Likely
Already loaded
27%
29%
20%
15%
5%
5%
26%
27%
20%
17%
5%
6%
34%
28%
18%
13%
4%
4%
33%
26%
18%
14%
5%
5%
42%
22%
16%
12%
6%
2%
41%
21%
15%
14%
6%
3%
20172018 2016
2 0 1 8 CA N A D I A N CO N S U M E R PAY M E N T ST U DY 30
F I N D I N GS & I N S I G H TS
CO N S U M E RS B E L I E V E M O B I L E W I L L TA K E O N A L A R G E R R O L E I N T H E I R F U T U R E P U R CH A S I N G B E H AV I O R .
It’s always interesting to understand what consumers believe about their future payment habits. For the past two years, we asked our respondents to predict what percentage of their in-store purchases would be made using their phone instead of physical cards over the next two years. This year, we only asked this question of respondents who said they were likely to, definitely would or already have loaded a debit or credit card into a mobile phone or wallet.
Exhibit 26 shows that 91 percent of these respondents believe that over the next two years, 25 percent or more of their purchases will be made using a mobile phone versus a physical card. Although many of these individuals may not have loaded their debit and/or credit card into a mobile wallet yet, clearly they believe they will be doing so in the near future.
CO N S U M E RS P R E F E R TO M A K E T H E I R OW N PAY M E N T CH O I CE S OV E R AU TO M AT I O N .
Consumers have already established that they frequently use different payment forms depending upon where they are shopping and dining and what they are purchasing. We asked the same subset of likely mobile wallet users from the previous question how likely they are to use an application that automatically decides which card to use (based upon preset preferences). In Exhibit 27, you can see that 38 percent of respondents said they would “likely” or “definitely” use this feature; 30 percent said they were “not likely” or would “never” use it; and 31 percent remained neutral. While there may be opportunities for this kind of application in the future, for now, it seems that consumers prefer to remain in control of their payment choices.
Exhibit 26:Percentage of In-Store Purchases That Will Be Replaced by the Use of Your Phone vs. a Card
Exhibit 27:Likelihood of Using an Application That Automatically Decides Which Card Is Used
Note: Answered by likely mobile wallet users.
20%75% of
purchases
35%50% of
purchases
23%25% of
purchases
9%0% of
purchases
13%100% of
purchases
0% 50%40%20% 30%10%
Never
Not Likely
Neutral
Definitely
Likely
12%
18%
31%
29%
9%
2 0 1 8 CA N A D I A N CO N S U M E R PAY M E N T ST U DY 31
F I N D I N GS & I N S I G H TS
CO N S U M E RS T R UST T H E I R OW N BA N KS T H E M OST F O R M O B I L E PAY M E N T A P PS .
We asked which mobile payment providers our survey participants would most trust to safeguard their personal and financial information. Overwhelmingly, across all age groups, respondents chose their own financial institution. Exhibit 28 shows the range of options and responses from the past two years.
CO N S U M E RS I N CR E AS I N G LY T R UST FACI A L R E CO G N I T I O N F O R M O B I L E AU T H E N T I CAT I O N .
Our final mobile-specific question explored consumer comfort levels with various mobile authentication methods, including passcodes, fingerprints, voice recognition and camera/facial recognition. The traditional passcode method continues to rank first at 64 percent, followed closely by fingerprints at 52 percent. Comfort levels increased across all of the categories from last year, reflecting growing familiarity with all types of authentication methods. Facial recognition showed the most significant increase, which we attribute to the introduction of mobile devices incorporating this feature. Exhibit 29 shows how participants responded over the past two years.
Exhibit 28:Most Trusted Source for Mobile Payment Apps
Exhibit 29:Comfort Level With Various Forms of Mobile Authentication
0% 60%20% 40%
My own primary financial
institution/bank
I am not interested in a
mobile app
Mobile device manufacturer
(e.g., Apple, Samsung, etc.)
Payment network/brand card (e.g.,
Visa, Mastercard, American Express)
Mobile device operating system
provider (e.g., Apple/IOS, Android, etc.)
Mobile network operator (e.g., Rogers, Telus,
Bell, etc.)
Online retailer (e.g., Walmart,
Costco, Amazon, eBay, etc.)
Department store/warehouse club
(e.g., Walmart, Canadian Tire,
Costco, etc.)
48%
36%
7%
3%
0%
2%
1%
1%
48%
35%
7%
5%
2%
1%
1%
0%
20172018
0% 80%60%20% 40%
Passcode
Fingerprint
Voice recognition
Facial recognition
60%
50%
28%
21%
64%
52%
36%
24%
20172018
2 0 1 8 CA N A D I A N CO N S U M E R PAY M E N T ST U DY 32
F I N D I N GS & I N S I G H TS
Smart Speakers and Connected Payment DevicesLast year, we began asking participants about their ownership and use of ‘smart speakers,’ such as Amazon’s Echo, Apple Home Pod, etc. The results were understandably low, as these products were not yet widely available in Canada. This year, we continued to explore the category and added a few questions about connected payment devices.
Exhibit 30:Own a Smart Speaker
0% 100%80%60%20% 40% 90%70%50%10% 30%
Yes
No
16%
84%
14%
86%
20172018
Similar to last year, ownership and use of smart speakers and other connected devices is still quite low at 14 percent. Among owners, the top reported usage is for music and entertainment (91 percent), overtaking last year’s preference for questions and answers, which took the second spot this year (80 percent). See Exhibits 30 and 31.
2 0 1 8 CA N A D I A N CO N S U M E R PAY M E N T ST U DY 33
F I N D I N GS & I N S I G H TS
We wanted to understand how people who have adopted smart speakers or connected devices are using these technologies. Across all categories, while ownership has not grown, usage increased from last year across the different applications. Exhibit 31 shows the overall breakdown.
Exhibit 31:Smart Speaker Uses
0% 100%80%60%20% 40% 90%70%50%10% 30%
To shop/purchase items (e.g., Amazon)
To make lists
Fun and games (e.g., jokes,
jeopardy, etc.)
Smart home (e.g., thermostat,
lights, TV, etc.)
Help around the house (e.g., timers
and alarms, etc.)
Questions and answers
News and information
Music and entertainment
26%28%
47%31%
46%34%
47%22%
70%21%
80%60%
76%46%
91%43%
20172018
2 0 1 8 CA N A D I A N CO N S U M E R PAY M E N T ST U DY 34
F I N D I N GS & I N S I G H TS
CO N S U M E RS A R E H E S I TA N T TO CO N S I D E R US I N G S M A RT S P E A K E RS F O R PAY M E N TS , CI T I N G S E CU R I T Y CO N CE R N S A N D SAT I S FACT I O N W I T H T H E I R CU R R E N T PAY M E N T M E T H O DS .
We were also interested in understanding what consumers thought about using smart speakers in the future for making purchases or payments. Out of the entire survey pool (not just those who already have a device), 11 percent said they would consider using a smart speaker to make payments in the future ― however, less than 1 percent indicated they have already done so. Then, we explored the reasons why our respondents were reluctant to use a smart speaker for purchases or payments. The top reason, shown in Exhibit 32, was security concerns (60 percent), followed by 35 percent who believe the way they currently pay is easier.
“Other” was listed by 5 percent of respondents. In their explanatory comments, they included a variety of reasons for not wanting to use smart speakers for payments, including: “Too easy to spend money;” “I prefer to make purchases when
I want them and not a device purchasing for me;” “In case it misunderstood me and made a wrong payment;” and ”The idea of paying to put a device that can eavesdrop in my home is insane.”
There’s been a lot of talk in the news lately about how consumers will use cars and other internet-connected objects to complete a variety of tasks, including making payments. Gartner Research estimates that by 2020, more than 250 million vehicles worldwide will include some form of embedded connectivity. And a recent Visa and pymnts.com study predicts that more than $210 billion in annual commuter commerce is at stake. You can read more about this in our ngenuity article, “Driving Commerce Inside the Connected Car ― Yes, You Can Pay From the Dashboard.”
We asked our survey pool how likely they would be to use these types of connected payment devices. As you can see in Exhibit 33, interest is currently quite low, but this is an area we will continue to monitor as this technology becomes more widespread.
Exhibit 32:Reasons for Not Using a Smart Speaker to Make Purchases/Payments
Exhibit 33:Likelihood of Using a Connected Payment Device
60%Securityconcerns
5%Other
35%Easier to
pay the way Icurrently pay
0% 50%40%20% 30%10%
Very unlikely
Unlikely
Neutral
Very likely
Likely
32%
21%
33%
10%
4%
2 0 1 8 CA N A D I A N CO N S U M E R PAY M E N T ST U DY 35
F I N D I N GS & I N S I G H TS
Marketing, Communications, Offers and Banking ActivityIt’s no secret that consumers entrust their Financial Institutions (FIs) with a great amount of their personal data ― much of which they don’t share with other brands, or even their closest friends. The amount of customer data that card issuers have makes them uniquely positioned to provide an extraordinary level of personalized communication. In this section of our survey, we wanted to monitor how comfortable consumers are around communications and marketing, as well as how they prefer to interact with their FIs.
E X I ST I N G CUSTO M E RS A R E ST R O N G P R OS P E CTS F O R N E W P R O D U CTS A N D S E RV I CE S .
For the third year in a row, more than 40 percent of survey participants said it was “important” or “very important” to have all of their financial products at the same banking institution/provider. This is good news for FIs wanting to increase the number of products and services their existing customers have. See Exhibit 34.
Exhibit 34:Importance of Having Accounts With Same FI
0% 40%20% 30%10%
Not at all important
Not important
Neutral
Very important
Important
8%
19%
30%
30%
13%
9%
18%
28%
31%
14%
7%
19%
30%
31%
13%
20172018 2016
2 0 1 8 CA N A D I A N CO N S U M E R PAY M E N T ST U DY 36
F I N D I N GS & I N S I G H TS
T H E I N T E R N E T A N D AT M S A R E T H E M OST CO M M O N CH A N N E L S F O R I N T E R ACT I O N .
Exhibit 35 breaks down the various channels consumers prefer to use to interact with their banks.
CUSTO M E RS P R E F E R E L E CT R O N I C M E T H O DS F O R CO M M O N BA N K I N G ACT I V I T I E S .
When we explored how consumers conduct their banking activities electronically, we separated our audiences into two groups: those who use mobile banking apps and those who bank via the internet (using a smartphone, tablet or personal computer). The questions were tailored for each group, but the top results came out the same. Exhibits 36 and 37 demonstrate that whether consumers use mobile banking apps or the internet, their top four activities are: viewing balances, viewing recent transactions, making bill payments and transferring funds.
Exhibit 35:How Interacting with Bank if Once a Month or More Frequently
Exhibit 37:Banking Activities Conducted: Website
Exhibit 36:Banking Activities Conducted: Mobile App
0% 40% 50% 60% 70% 80% 90%20% 30%10%
View balance
View recenttransactions
(payments,deposits)
Make billpayments
Transfer funds
Contactcustomer service
Make mobilecheque deposit
91%
81%
70%
37%
67%
9%
0% 80% 100%40% 60%20%
View balance
View recenttransactions
(payments,deposits)
Make billpayments
Transfer funds
Contactcustomer service
Reordercheques
Open a newaccount/apply
for credit
91%
82%
79%
18%
68%
16%
19%
0% 80%60%40%20%
Calling customer support
ATM (automated teller machine)
Walking into a branch
Banking via the internet on your
smartphone or tablet
A banking app from your financial institution on
your mobile device
Banking via the internet on your personal
computer
10%
58%
40%
75%
46%
45%
2 0 1 8 CA N A D I A N CO N S U M E R PAY M E N T ST U DY 37
F I N D I N GS & I N S I G H TS
E M A I L I S T H E TO P CH O I CE F O R M OST CO M M U N I CAT I O N S .
We asked our survey participants how they would like to be contacted by their FIs regarding various types of information. The overall preferred channel was email, which reflects the results from the past three years. The one exception was in how respondents wanted to be alerted about the potential unauthorized use of an account. In that case, a combination of both phone calls and text messages outpaced email. Exhibit 38 shows the overall preferences by type of communication and the preferred channel.
Exhibit 38:Preferred Channel for Receiving Communications From Your Financial Institution
Marketing/special offers
Availability of new products
Change in terms of your account (e.g., interest rate, fees, etc.)
Potential unauthorized use of your account
Significant change to your account (e.g., address change, new card request, etc.)
Purchase transactions
Do not send Mail Email
27%
26%
9%
13%
12%
27%
54%
56%
55%
8%
8%
18%
6%
15%
13%
37%
51%
53%
Phone / text
2%
1%
3%
22%
10%
6%
Phone call
1%
1%
2%
20%
12%
4%
Social media
2%
2%
1%
1%
1%
1%
Mobile alert
1%
2%
2%
6%
3%
5%
2 0 1 8 CA N A D I A N CO N S U M E R PAY M E N T ST U DY 38
F I N D I N GS & I N S I G H TS
I F T H E R E ’ S A P R O B L E M , CO N S U M E RS WA N T TO S P E A K W I T H A P E RS O N R I G H T AWAY .
While we’ve noted that customers prefer using the internet and ATMs for normal, everyday transactions, if there’s an issue with a payment card they overwhelmingly prefer to “call customer service.” Visiting a branch was a distant second, followed by emailing customer service. Interestingly, there was a decrease this year in
Exhibit 39:Preferred Method of Communication of an Issue
0% 80%40% 60%20% 70%30% 50%10%
Chat with customer service via their
mobile app
Chat with customer service via their website
Social media (e.g., Facebook, Twitter)
Walk into a branch
Email customer service
Call customer service to talk to a representative
1%
1%
3%
5%
1%
1%
21%
15%
8%
9%
66%
69%
20172018
people who would visit the branch and an increase in those who would contact the bank via online chat (on the website). Exhibit 39 shows how this year’s responses compared to those in 2017.
When we looked at the breakdown by age groups, we found that 18-24 year olds were more likely to walk into the branch than any other age group. We believe this is due to their lower comfort level and experience with financial services.
CO N S U M E RS P R E F E R TO R E CE I V E M A R K E T I N G M E SSAG E S A B O U T O N CE A M O N T H .
2 0 1 8 CA N A D I A N CO N S U M E R PAY M E N T ST U DY 39
F I N D I N GS & I N S I G H TS
When we asked respondents who were willing to receive marketing and special offers from their bank how often these messages should be sent, 48 percent said once a month (which is similar to results from previous years). In the No. 2 spot, 27 percent said they’d like to be able to decide how often to receive materials. See Exhibit 40.
CO N S U M E RS A R E I N T E R E ST E D I N P E RS O N A L I Z E D M A R K E T I N G A N D S P E CI A L O F F E RS .
Exhibit 40:Preferred Frequency of Receiving Special Offers
Exhibit 41:Willingness to Receive Coupons/Special Offers
Exhibit 41 shows that 83 percent of the same subset of respondents said they would be “somewhat” or “very interested” in receiving coupons and special offers based on information their financial institution collects about their purchase history. Only 17 percent of respondents were not interested. That’s great news for those planning or already executing on campaigns geared toward specific payment behavior.
CO N S U M E RS A R E I N T E R E ST E D I N I D E N T I T Y T H E F T P R OT E CT I O N A N D CR E D I T S CO R E R AT I N G .
5%Never
48%Once a month
11%Once aweek
9%Once a year
27%I want the
ability to decide how often
61%Somewhatinterested
17%Not at all
interested22%
Veryinterested
2 0 1 8 CA N A D I A N CO N S U M E R PAY M E N T ST U DY 40
F I N D I N GS & I N S I G H TS
We wanted to learn more about what other types of products and services consumers would like their financial institutions to offer. This year, we added two items to the list: discounted tax software and financial planning. Both of these new options performed fairly well. However, similar to the results from last year, our respondents’ top choices were identity theft protection and credit score/rating. The raw percentages for these were lower this year because, while respondents were able to choose multiple products and services, many only chose one ― and there were two additional options. The responses can be found in Exhibit 42.
Security:
Exhibit 42:Other Products and Services
0% 40% 50%20% 30%10%
Something else
Discounted tax software
Financial planning
Identity theft protection
Nothing
Credit score/rating
2%
16%
25%
41%
51%
34%
2 0 1 8 CA N A D I A N CO N S U M E R PAY M E N T ST U DY 41
F I N D I N GS & I N S I G H TS
Consumers Are Aware, but Not Overly Concerned
P E O P L E A R E CH A N G I N G T H E I R PA SSWO R DS TO S E CU R E T H E I R P E RS O N A L DATA A N D ACCO U N TS .
New to the survey this year is a section aimed at understanding consumer sensitivity and behavior around security. In light of numerous reports in the news of security failures and breaches, we wanted to know what actions, if any, our respondents had taken over the past year to ensure the security of their personal data and accounts. We also wanted to know how they felt about being asked for additional information geared at preventing fraudulent behavior. Exhibit 43 shows that the most common action was changing email, online banking and retail account passwords, followed by requesting and reviewing credit reports to check for abnormalities. As part of our inquiry into consumer attitudes on security,
0% 60%40%20%
Shop at fewer online sites
Shop online less frequently
Signed up for credit monitoring or identification
protection services
Changed my online banking passwords
Changed passwords for my email
Obtained and reviewed my credit report to look
for any irregularities
Changed passwords on the websites where
I shop frequently
36%
32%
18%
47%
53%
53%
41%
Exhibit 43:Actions Taken in the Last Year to Secure Data/Accounts
2 0 1 8 CA N A D I A N CO N S U M E R PAY M E N T ST U DY 42
F I N D I N GS & I N S I G H TS
we asked participants who they thought was responsible if their personal information was stolen and used to make fraudulent purchases or withdraw funds from their account. In Exhibit 44, you can see that 40 percent of respondents believe their bank is responsible, followed by 35 percent who think the store or merchant where the information was stolen should be responsible, followed by 25 percent who listed the card network as responsible if a credit card was used fraudulently.
CO N S U M E RS ’ CO N F I D E N CE I N T H E PAY M E N T
SYST E M R E M A I N S FA I R LY H I G H .
We asked our participants how concerned they are that their account or personal information could be stolen. Their responses, displayed in Exhibit 45, indicated that the majority is only “somewhat” or “not very” concerned ― while only 30 percent indicated extreme concern.
Exhibit 44:Who Is Responsible If Account or Personal Information IsStolen/Fraudulent Activity Occurs?
Exhibit 45:Concern About Information Being Stolen
0% 60%40%20%
My bank
The store or merchant where my information
was stolen
The card networks if it iscard related (e.g., Visa,Mastercard, American
Express)
The government
Other
The credit bureaus
40%
30%
25%
1%
0%
4%
58%Somewhatconcerned
30%Extremelyconcerned
12%Not very
concerned
2 0 1 8 CA N A D I A N CO N S U M E R PAY M E N T ST U DY 43
F I N D I N GS & I N S I G H TS
Over the past few years, financial institutions have been combatting fraud by increasing the amount of information consumers are required to provide in order to confirm their identity and apply for new loans and credit cards. As a result, these processes take longer and require more effort on the part of the customer, which isn’t always in alignment with the goal of providing the best possible customer experience. We wanted to know whether or not consumers understand why they’re being asked for this additional information and measure
Exhibit 46:Agreement Level Regarding Data/Verification Requested
0% 60%40%20% 30% 50%10%
I understand they are asking for more
information due toincreases in fraud and
identity theft
I don't mind when I am asked a variety of
questions to confirmmy identity when I call
to inquire about the status of my new
card/loan
The time involved to complete an application
for a new loan/credit card takes too long
I am comfortable providing the
information requested when I am asked for
detailed personal information when
applying for a new loan or card
31%
46%
19%
2%
1%
26%
45%
23%4%
3%
5%
22%
45%
20%
7%
13%
41%
31%
10%
5%
AgreeStongly agree Neutral Disagree Stongly disagree
their level of comfort with the situation. In Exhibit 46, survey respondents were asked to rate the degree to which they agreed or disagreed with four statements. Most of the responses were neutral or better, which seems to indicate that our respondents generally understand the security issues behind why they are being asked for more information and are willing to provide it.
442 0 1 8 CA N A D I A N CO N S U M E R PAY M E N T ST U DY
Conclusion
2 0 1 8 CA N A D I A N CO N S U M E R PAY M E N T ST U DY 45
CO N CLUS I O N
Consumers are embracing services and technologies that are easy to use, secure and provide value.Although consumers are sometimes slow to adopt emerging technologies ― such as mobile payment options ― our survey respondents actually see themselves using these services in the not-so-distant future. The trend toward smart speakers and connected devices has yet to gain mainstream momentum but is worth continuing to watch. Consumers are most likely to embrace new offerings that provide specific value and seem easy to use and secure ― especially if they’re offered by the individual’s own financial institution.
Security continues to be important, although consumers are not overly concerned about the safety of their personal data or financial accounts. Most people prefer to use self-service banking apps or websites to handle routine activities; however, they prefer to call a customer representative if there’s ever an issue with a card. Other than for resolving payment card issues, younger consumers are more likely than others to use digital offerings, but that usage is growing across all age groups.
Rewards and loyalty programs are the single most important factor influencing the choices of people with more than one credit card. Moving forward, rewards programs that will allow consumers to instantly receive discounts or redeem points via their mobile device at the time of purchase will be of particular interest.
The results of this study are consistent with industry-wide reports on the growth in popularity for using credit to make purchases and payments in almost every category. However, it’s important to keep in mind that all of our participants were required to have at least one credit and one debit card. The results would certainly look different if we had included individuals without access to these forms of payment.
2 0 1 8 CA N A D I A N CO N S U M E R PAY M E N T ST U DY 46
A P P E N D I X
Respondent Demographics
Exhibit 47: Gender
Exhibit 48: Age
Exhibit 49: Education
Our survey sample included 1,020 consumers, representative of the age and gender distributions of the Canadian population. All participants were over the age of 18 and owned at least one credit and one debit card. The following charts provide a full breakdown of the demographics of our survey respondents.
49%Male
51%Female
17%25-34
11%18-24
16%35-4418%
45-54
17%55-64
21%65 or older
0% 50%40%30%20%10%
Prefer not to answer
Post-graduate degree
Some university - no degree
Graduated university
(2- or 4- year)
Graduated secondary/high school
Some secondary/high school
Primary school
2%
16%
39%
21%
19%
2%
0%
2 0 1 8 CA N A D I A N CO N S U M E R PAY M E N T ST U DY 47
A P P E N D I X
Exhibit 52: Type of Devices Owned
Exhibit 51: Household Income
0% 80%60%20% 40%
Unemployed
Homemaker
Self-employed or small
business owner
Student
Retired
Employed fullor part time
4%
4%
5%
5%
28%
54%
0% 30%20%10%
Prefer not to answer
$150,000 or more
$75,000 to less than $100,000
$100,000 to less than $150,000
$50,000 to less than $75,000
$25,000 to less than $50,000
Less than $25,000
11%
8%
16%
18%
22%
19%
7%
0% 50%40%30%20%10%
A tablet
An Android-based smartphone
A 'wearable" device
An Apple iPhone
A basic voice and text messaging
cell phone
Do not own a mobile device of
any type
Another type of smartphone
A BlackBerry smartphone
A Microsoft-based smartphone
44%
42%
41%
12%
11%
5%
3%
3%
1%
Exhibit 50: Employment Status
Note: Respondents could select all that applied.
A B O U T TSYS
TSYS® (NYSE: TSS) is a leading global payments provider, offering
seamless, secure and innovative solutions across the payments
spectrum ― for issuers, merchants and consumers. We succeed
because we put people and their needs at the heart of every
decision to help them unlock payment opportunities. It’s an
approach we call People-Centered Payments®.
Our headquarters are located in Columbus, Ga., U.S.A., with
approximately 12,000 team members and local offices across
13 countries. TSYS generated revenue of $4.9 billion in 2017,
while processing more than 27.8 billion transactions. We are
a member of The Civic 50 and were named one of the 2018
World's Most Ethical Companies by Ethisphere magazine. TSYS
is a member of the S&P 500 and routinely posts all important
information on its website. For more, visit tsys.com.
CA L L US :
Africa +27 21 5566392
Asia-Pacific +603 2173 6800
Commonwealth of Independent States +7 496 287 3800
Europe +44 (0) 1904 562000
India & Southeast Asia +911204191000
Middle East +971 (4) 391 2823
North & Central America, Mexico & the Caribbean +1.706.644.3819
South America +1.706.644.3819
©2018 Total System Services, Inc.® All rights reserved worldwide. Total System Services, Inc. and TSYS® are federally registered service marks of Total System Services, Inc. in the United States. Total System Services, Inc. and its affiliates own a number of service marks that are registered in the United States and in other countries. All other products and company names are trademarks of their respective companies. (11/2018)
To learn more: contact +1.844.663.8797 or email [email protected].
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