Report: Canadians Prefer Credit, Increasingly Turning to Card-on-File
June 29, 2015
Canadians prefer credit cards to debit cards or cash when making payments and a heavy preference for credit cards online—along with an overall increase in e-commerce—means the trend toward credit in Canada will continue, according to a new report from payment processor TSYS. Forty-six percent of Canadian consumers said they prefer to use credit cards to make purchases of all types, the Columbus, Ga.-based company found, with 34 percent identifying debit cards and 14 percent preferring cash. No other payment method garnered more than one percent. For online purchases, the report said 51 percent prefer credit cards, 30 percent choose PayPal and only four percent prefer debit cards.
Having a card on file to make online purchases continues to gain traction with Canadian consumers. Forty-eight percent said they completed an online transaction using a card they had on file with a retailer, up from 41 percent in 2014. An additional 31 percent registered a card with an online retailer, up from 26 percent a year earlier. Nearly 40 percent of Canadian consumers have a card on file with Amazon and 50 percent with PayPal.
As far as leveraging mobile devices, more Canadians have “high interest” in using them to manage transactions, accounts and loyalty programs than anything else. Only 14 percent had high interest in using a phone to pay at the POS. Wearables fared even worse, with only 11 percent of Canadian consumers having high interest in using a smart watch to make a payment.