Each day, the Canadian POS Corporation team has the honour of speaking with business owners from all over Canada. These amazing individuals embody the entrepreneurial spirit we respect so greatly. They each have helped to shape the Canadian economy through their innovative brands. Our clients are not only accomplished, but well-learned in their industries, so we often find that we learn quite a lot from speaking to them.
One thing, that has definitely been a common theme in our conversations with our clients over the past few months, is the fact that young people are heavy credit card users. In fact, our younger generation appear to be using credit cards more than any other generation before it. “I can almost guarantee that every time a young person enters my store that they’re gonna pay with a credit card,” one of our clients shared.
On GreedyRates.ca, this point is highlighted. The site notes that there has been a major shift in spending patterns, as millennials are using credit cards in ways that they were never used before. As a result there is a “massive change in the Canadian credit card landscape.” It goes on to reveal that a recent TSYS (Total System Services) study found that “millennials are disloyal, love rewards, churn and embrace technological change.”
The disloyalty being referred to signifies the fact that our younger generation looks for the best deals without much concern about the companies providing those deals. One of the deals millennials look for is a rewards points program that offers maximum benefits. GreedyRates.ca states that they “love using rewards credit cards, redeem their points more frequently, try to use their credit cards as often as possible to maximize rewards and prefer cash equivalent or cash back rewards.”
As a result, credit card companies need to consistently come up with innovative programs to keep the interest of their young cardholders. And don’t think that these youthful credit card users aren’t savvy when it comes to making buying choices! “More than any other generation, millennials are using their social networks and access to online information to exploit credit card rewards programs,” says GreedyRates.ca, “signing-up for attractive credit card welcome bonuses, redeeming all of their points for travel or cash, closing their account and applying for the next great offer.”
So how are credit card companies keeping up? The website reveals that the fact that millennials enjoy cash back programs so much has spawned a variety of new card types. “Not only is cashback preferred, but banks are increasingly doing away with caps, tiers and redemption minimums,” reads GreedyRates.ca, “We’re seeing an increasing number of flat rate cashback programs, with the goal of making the value proposition clear and simple to understand.”
At Canadian POS Corporation, we strongly believe the Canadian merchants need to take the same approach towards attracting young shoppers. The first, and most obvious step, would be to ensure that all customers are aware of the fact that you accept credit cards. That way, you pretty much guarantee a rise in the number of young people making purchases from you. Of course, if you are yet to offer this much-used payment option, it’s definitely time to start!