Yahoo Finance Canadians leave their wallets at home as Interac Debit mobile contactless transactions surge 53% in the last year
Interac payments trends survey shows Gen Z are influencing their Gen X parents' payment habits as Interac Debit for mobile payments grows to reach a total of one billion transactions
TORONTO, Aug. 23, 2023 /CNW/ - Canadians' reliance on their smartphones continues to increase. Interac data reveals a 53 per cent jump in the use of Interac® Debit for mobile contactless payments in stores and a 17 per cent surge in its use for e-Commerce purchases between August 2022 and July 2023. Over one billion of these mobile transactions have taken place within a 12-month period for the first time ever.
"While many Canadians shifted to contactless early in the pandemic, our data shows consumers are now going a step further as mobile payments become mainstream, particularly as younger Canadians influence those around them to follow suit," said William Keliehor, Chief Commercial Officer, Interac Corp. "Debit remains central to the way Canadians choose to pay, even as in-store and e-Commerce transactions take new forms."
According to a recent Interac survey, nearly eight in 10 (78 per cent) Gen Z adults pay using their smartphone, well ahead of older demographics including their parents' generation, Gen X (42 per cent). While Gen X Canadians appear to have more concerns about the security of mobile and contactless payments, their kids are influencing their payment habits. Four in ten Gen Xers polled (41 per cent) embrace payment options only after they have seen friends and family use them, while half of Gen Z respondents (52 per cent) have taught older family members how to pay with their phone.
"Interac is innovating to help make life easier for Canadians. We're exploring the ever-evolving ways Canadians are connecting to the digital economy – whether it's by making purchases, paying their transit fares, or supporting small businesses," added Keliehor.
Spending snapshot:
Generation debit: Among Gen Z Canadians who make purchases with their smartphone, over half of those surveyed (53 per cent) prefer to pay with debit. Three quarters of Gen Z (76 per cent) believe Canadians should always have the option to use debit when checking out online, making a purchase in an app, or paying in store.
Hit the road: As Canadians head out to explore the country this summer, their smartphones are always in tow. Interac Debit mobile transactions at service stations have increased 48 per cent over the last 12 months.
Al fresco fun: The trend continues on the patio. Mobile Interac Debit purchases at restaurants and eating places have risen 63 per cent over the last 12 months and 40 per cent at fast food restaurants.
As we look to the future, nearly two thirds of Canadians polled (63 per cent) expect that it will soon be normal to leave home without a physical wallet, knowing you can pay with a smartphone or smartwatch. As of this month, TTC riders in Ontario can pay their fare with Interac Debit using their smartphone or physical debit card. This capability is set to fuel further growth in mobile transactions in the months to come. For more information on setting up contactless payments with Interac Debit on your smartphone, click here and to take a deeper dive into these payment trends, visit In The Know.
About the Interac transaction milestone
More than one billion Interac Debit mobile contactless and in-app transactions have taken place on the Interac Token Service Provider (TSP), setting a record for transaction volume within a 12-month period (August 2022 to July 2023). This proprietary token generation and management service was developed by Interac to substitute a consumer's Primary Account Number (PAN), with a secure token consisting of a unique and random sequence of numbers. This allows the consumer to make a purchase without exposing their financial information, which significantly reduces the risk of fraud while making paying simple and convenient for consumers.
About the research
Hill+Knowlton Strategies used Morning Consult's panel services to survey 1,502 Canadians over the period of June 16th to 18th, 2023. Sampling was done within age, gender, and region quotas. The length of survey was 7 minutes. Data was weighted on age, gender, and region according to 2016 census figures. An associated margin of error for a randomly selected sample of n=1,502 would be ±2.5%, 19 times out of 20.
About Interac Corp.
Interac empowers Canadians to transact digitally with confidence by providing payment and value exchange services. In helping to develop the future of money and data in Canada, security is the core of everything we do. We help keep Canadian customers safe and secure when transacting. With nearly 300 financial institutions connected to our network, Canadians choose Interac products over 20 million times a day on average to exchange money. Interac champions workplace culture, community, and corporate citizenship. We are proud to be one of Canada's leading and most trusted financial brands. For more information, visit our website.
Interac is a registered trademark of Interac Corp.
SOURCE Interac Corp.
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/August2023/23/c2204.html
