Report: Canadians Prefer Credit, PayPal for Online Purchases
April 3, 2014
A surprisingly high percentage of Canadian consumers keep low-limit credit cards specifically to shop online, according to a new report from payments processor TSYS. The TSYS 2014 Canadian Consumer Payment Choice Study , which looked at payment preferences of all kinds showed by Canadians, found credit was the overwhelming choice to pay online with 62 percent. Most consumers in the focus groups conducted for the study said security was the reason for their choice. Only 2 percent of Canadians preferred to use debit, but more than a third (35 percent) chose alternative payment methods. The most popular alternative to credit cards for online purchases was PayPal, chosen by 30 percent of respondents.
Storing credit cards online with a merchant or service provider like PayPal is becoming more common, the study found.
“An industry trend we’ve been observing is how increasingly common it is for consumers to have credit or debit cards stored via online accounts,” the authors wrote in the report. “We found that nearly two-thirds of respondents had at least one account stored with an online merchant, and many of the larger online merchants were well-represented. In the follow-up question, 65 percent of those respondents said they store the same card with each site or app.”
As for mobile payments, the jury still is out for Canadian consumers. More than half had no interest in using their phones to make payments, most citing security concerns.