Mobile payments' popularity growing in Canada
Canadian millennials are increasingly turning to mobile wallets, which offer a better deal that credit cards or cash, according to a study by Moneris. Around a quarter of users aged between 18-34 prefer mobile wallets, while 46% and 47% said they would switch if the payment method was available for their credit card or phone of choice, respectively. More than 60% said they would use a mobile wallet if they were convinced it was a secure method, while according to a Leger survey, 42% said they would use one if more stores accepted it. Moneris predicts that only 10% of all money spent in Canada by 2030 will be cash.

Study: Canadians Increasingly Getting Behind Mobile Payments

September 23, 2016 By: Steven Anderson

Recently, we heard that United States’ mobile payment users weren’t so much interested in mobile payments as they were in mobile banking.

That increasingly doesn’t seem to be the case with America’s northern neighbor Canada, who—according to a recent Moneris study—is getting behind mobile payments in increasingly large numbers.

The Moneris study offered almost shocking projections, noting that around 10 percent of all money spent in Canada by 2030 would be cash. Given that that number was 35 percent in 2014, it’s perhaps not quite as shocking as it looks, but is still reasonably shocking.

This number is backed up by a closer look at the demographics, including the growth of millennial Canadians—commonly regarded as those age 18 – 34—who prefer paying with mobile wallet systems.

Right now, that number’s up around a quarter, as compared to 18 percent of those between 45 and 54, and the numbers dropped from there.

What’s more, getting more millennials isn’t that tough; 46 percent said they would be more likely to use a mobile wallet if it were available for their current credit card, and 47 percent would step in if it were available for their phone of choice.

Sixty-two percent would step up to mobile if they were sure it would be secure, according to a Leger survey, and 42 percent would join in if more stores accepted it. Just to round it out, 50 percent would come in with more loyalty card access from a phone.

All of this underscores reports we’ve seen right here for the last while now; when mobile payments has a clear value that beats cash and cards, then it will get more than the early adopter segment in play.

People right now don’t see much reason to stop paying with current methods and switch instead to a mobile wallet; that’s why mobile banking is generally doing better, as the value proposition is clearer. With other features included like integrated rewards cards and better security, that adds value to mobile wallets and increases the likelihood such payment systems will be used.

In the end, as the song said, it’s all about value. Canadian users are increasingly seeing value in mobile payments, and with a few key points to consider, more value can be generated for users and more users can be brought into the market.