Study Confirms Canadians Prefer Credit Cards Over Cash

Over the past few days, we have been blogging about the fact that, with the holiday shopping season now here, Canadians will be doing a lot more shopping than usual. And, just as importantly, they will be using their credit cards much more frequently. Canadians are known for preferring plastic over paper when it comes to their payment methods. And, according to an online study conducted by market and consumer information firm, GfK, paying with smartphones is also growing in popularity.

As reported by Lauren La Rose of The Canadian Press courtesy of the Global News website, “Canadian consumers are more inclined to reach for their smartphones and credit cards over bills and coins to make purchases,” Conducted last year, the GfK study found that only 25 percent of Canadian transactions were made in cash. This marked a decline of 2 percent from 2014. Credit cards accounted for the majority of transactions – nearly half, in fact, at 42 percent.

Stephen Popeil is the vice-president of GfK Canada. Although he doesn’t believe that cash will ever completely disappear, he does believe that cash will continue to get used less and less. He attributes this to the way that credit card companies have advertised the benefits of their products. “We…saw a number of years ago in this country a very concerted effort by the card companies to get people to start using their cards for smaller payments. That clearly has worked,” he is quoted as saying.

The GfK study also found that debit card use remains highly popular in Canada as well. 28 percent of transactions were made with debit – a one percent increase from 2014. Mobile device payments also grew by one percentage point to three percent compared to 2014. “In the case of mobile payments, GfK found that they tend to skew to younger and higher-income Canadians, as well as among urban dwellers and those with a higher education,” reports La Rose.

And while mobile payments are growing in popularity, there remains a concern about security. Popeil notes that while older Canadians admit that mobile payment systems do help for making quick and easy transactions, many of them are concerned about the potential of fraud or identity theft that could arise.

“The survey found 53 percent of Canadians agreed they were worried about their personal information when using a mobile payment app, and only 22 percent agreed they were confident that their mobile device payments were 100 percent secure,” La Rose reveals.

For Canadian merchants, the findings of this study are very important. They represent an official declaration that Canada is moving towards being a cashless society. For business owners who continue to use the cash-only approach to doing business, this study confirms that their companies are headed in the wrong direction. To remain relevant in any marketplace in Canada, plastic must be accepted.

At Canadian POS Corporation, we offer Canadian business owners the opportunity to “cash” in on the popularity of credit cards and debit cards. We offer top-of-the-line POS terminals at the most affordable rates in our industry! Whether you’d prefer our Countertop or Wireless models, our POS terminals are ideal for any business looking to take advantage of the fact that Canadians simply prefer paying with plastic.

For more information, call Canadian POS Corporation at 1-877-748-2884 or email us at info@localhost.