Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Payments Pulse Survey

2,505 views

Published on

May 09, 2017

Published in: Economy & Finance
  • Be the first to comment

Payments Pulse Survey

  1. 1. PAYMENTS PULSE SURVEY MAY 9, 2017
  2. 2. FOREWORD Financial services are changing dramatically and so are payments. Technology and innovative thinking are enabling tremendous opportunities, especially in retail payments. Cash and cheques are declining, but more slowly than we would expect. This is because our payment systems in Canada have served us relatively well, but our core national payments infrastructure still needs to be modernized. In 2016 we developed a vision for a modern payment system that is fast, flexible and secure, promotes innovation and strengthens Canada's competitive position. We also published a roadmap for change, and are well into its implementation. Financial institutions, governments and stakeholders are all engaged and motivated to make this a success for Canada. As we progress through Modernization, it is important to regularly take the pulse on the attitudes and behaviours of Canadians regarding the increasing digitization of payment transactions. What is their level of adoption to date? How do they feel about moving towards a more “paperless” payments system? In the context of wider technological innovations, how safe and secure do they feel about new innovations in payments? As the following Payments Pulse Survey reveals, adoption rates of new technologies may remain low, but endorsement from early adopters, openness to change and high anticipation suggest a shift is on the way. Gerry Gaetz CEO, Payments Canada
  3. 3. METHODOLOGY QUANTITATIVE RESEARCH INSTRUMENT A survey of 1507 Canadianswas completed online between March 23rd to April 2nd, 2017 using Leger’s online panel, LegerWeb. A probability sample of the same size would yield a margin of error of +/-2.5%, 19 times out of 20. ABOUT LEGER’S ONLINE PANEL Leger’s online panel has approximately 475,000 members nationally – with between 10,000 and 20,000 new members added each month, and has a retention rate of 90%. QUALITY CONTROL Stringent quality assurance measures allow Leger to achieve the high-quality standards set by the company. As a result, its methods of data collection and storage outperform the norms set by WAPOR (The World Association for Public Opinion Research). These measures are applied at every stage of the project: from data collection to processing, through to analysis. We aim to answer our clients’ needs with honesty, total confidentiality, and integrity.
  4. 4. KEY INSIGHTS
  5. 5. KEY FINDINGS 61% of Canadians like the idea of change 42% Of Canadiansare excited about the future of e-walletsand e- payments Have already deposited a cheque using camera or mobile app: Yes 27% No 72% find this to be convenient 97% Have already uploaded e wallet since it launched in Canada: Yes 13%No 86% find e-wallet convenient83% Already store credit card information with app or ecommerce site: Yes 41% No 56% Are confident that their credit card information is secure90% 48% Willing to give up privacy for more convenient payment methods Canadians want highly convenient electronic payments accessible through the internet or your mobile device: 50% 66% willing to give up cash and coins willing to give up cheques 27% Willing to pay for more convenient payment methods
  6. 6. DETAILED RESULTS
  7. 7. When it comes to openness to change, six-in-ten (61%) Canadians like change when it comes to their daily routine. Which of the following best describes your openness to change when it comes to your daily routine? 11% 50% 34% 4% 2% I strongly like change I somewhat like change I somewhat dislike change I strongly dislike change I don’t know / I prefer not to answer Like change: 61% 55% 58% 66% University- Educated College High School Education Dislike change: 38% OPENNESS TO CHANGE
  8. 8. FEELING ANXIOUS OR EXCITED ABOUT FUTURE INNOVATIONS To what extent to do you feel excited or anxious when it comes to the following: 22% 25% 26% 18% 14% 7% 35% 31% 29% 34% 36% 20% 28% 25% 27% 32% 29% 45% 7% 12% 13% 9% 12% 18% Very anxious Somewhat anxious Don’t know / Prefer not to answer Somewhat excited Very excited Artificially intelligent robotic workforce Driverless cities and highways Self-driving cars Artificially intelligent robots e-wallets and e-payments Connecting via virtual or augmented reality to friends and loved ones 57% 56% 55% 52% 50% 27% 35% 37% 41% 41% 42% 63% % Excited % Anxious 47% vs 31% 49% vs 39% 77% vs 59% Quebec vs rest of Canada
  9. 9. STORING PERSONAL CREDIT CARD INFORMATION WITH A MOBILE APP OR ONLINE ECOMMERCE SITE Four-in-ten (41%) Canadians store personal credit card information on a mobile app or an online ecommerce site. Nearly all (90%) feel confident that the app or service provider they use will ensure the security of their credit card information. Do you store personal credit card information with a mobile app or online ecommerce site? 90% Yes 37% 38% 48% Education Age University- Educated College High School Yes 41% No 56% 57% 51% 37% 31% 22% 18-34 35-44 45-54 55-64 65+ feel confident that the app or service provider you used will ensure the security and privacy of your personal credit card information
  10. 10. UPLOADING E-WALLET APP SINCE CANADIAN LAUNCH More than one-in-ten (13%) Canadians have uploaded an e-wallet app since it has launched in Canada. Do you store personal credit card information with a mobile app or online ecommerce site? Yes 13%No 86% 83% Yes 12% Find the e-wallet convenient Find the e-wallet inconvenient 51% 45% 33% 22% 11% 3% Not able to make a payment successfully with e-wallet /Option wasn’t available Having to get the app ready for purchases Easier to just use contactless cards The e-wallet is frequently unable to complete my payment Managing cards on the e-wallet Don't know / Prefer not to answer What do you find inconvenient about the e-wallet experience?* 19% 19% 12% 8% 4% 18-34 35-44 45-54 55-64 65+ Yes Age
  11. 11. DEPOSITING CHEQUES WITH SMARTPHONE CAMERA AND BANKING APP Roughly one-quarter (27%) of Canadians have deposited a cheque using their smartphone’s camera and mobile banking app. Nearly all (97%) find it to be convenient. Yes 27% No 72% Yes 18-34 35-44 45-54 55-64 65+ Age Yes 97% find depositing a cheque using their smartphone’s camera and mobile banking app to be convenient 44% 34% 25% 16% 10% 24% vs 31% Have you deposited a cheque using your smartphone’s camera and mobile banking app?
  12. 12. WILLINGNESS TO GIVE UP PRIVACY FOR MORE CONVENIENT PAYMENT METHODS How willing are you to give up some degree of privacy for more convenient payment methods? Canadians have been willing to give up some level of privacy for convenience. We’ve done it with the growth of smartphones, tablets and mobile apps. Canadians are split when it comes to their willingness to give up some level of privacy for convenient payment systems, with 48% say they are willing and 49% say they are not willing to give up privacy. 6% 42% 35% 14% 3% Very willing Somewhat willing Not very willing Not at all willing I don’t know / I prefer not to answer Willing: 48% Not willing: 49% 18-34 35-44 45-54 55-64 65+ Age Age 40% vs 51% <$40K $40K- $59K $60K- $79K $80K- $99K $100K + 56% vs 45% Income Willing 62% 54% 40% 46% 34% 47% 48% 47% 45% 60%
  13. 13. CASH USED IN A TYPICAL MONTH On average Canadians use cash roughly 20 times a month totaling slightly more than $200 per month. Canadians, who do use cash transactions, are split on whether they would move away from cash to use a more convenient electronic payment method, with 50% saying they would be willing to do this. Approximately how much cash do you use in a typical month? 15% 35% 32% 17% 1% Very willing Somewhat willing Not very willing Not at all willing I don’t know / I prefer not to answer Willing: 50% Not willing: 49% How willing are you to move completely away from using cash and coins to highly convenient electronic payments accessible through your mobile device? Number of cash transactions per month: Value of cash transactions per month: Average 22 Transactions/ month $220 /month
  14. 14. NUMBER OF CHEQUES WRITTEN IN A MONTH On average, Canadians are writing 3 cheques a month, totaling roughly $250. However, four-in-ten (43%) are writing zero cheques a month. Approximately how much cash do you use in a typical month? Number of cheques written per month: Value of cheques written per month: Average 3 cheques/ month $245 /month 26% 40% 18% 14% 2% Very willing Somewhat willing Not very willing Not at all willing I don’t know / I prefer not to answer Willing: 66% Not willing: 32% How willing are you to move completely away from using cheques for highly convenient electronic payments accessible through the internet or your mobile device?
  15. 15. WILLINGNESS TO PAY PER TRANSACTION AND NOT USE CASH OR CHEQUES FOR ELECTRONIC PAYMENTS Roughly one-quarter (27%) of Canadians would be willing to pay per transaction to not have to use cash or cheques, and use an electronic payment that is accessible through the internet or mobile advice. To what extent would you be willing to pay per transaction to not have to use cash or cheques, and use an electronic payment accessible through the internet or your mobile device? 8% 19% 30% 40% 3% Not willing: 70% Willing: 27% 41% vs 23%25% vs 30% 33% vs 25% I would be very willing to pay for that convenience I would be somewhat willing to pay for that convenience I would not be very willing to pay for that convenience I would not be at all willing to pay for that convenience I don’t know / I prefer not to answer
  16. 16. PERCENTAGE OF SHOPPING DONE ONLINE On average, Canadians do one-fifth (19%) of their shopping online. What percentage of your shopping do you do online? % of shopping done online: Average 19% 18-34 35-44 45-54 55-64 65+ Age Age 18% vs 21% 25% vs 17% <$40K $40K- $59K $60K- $79K $80K- $99K $100K + Income 18% 16% 20% 20% 24% 30% 25% 17% 12% 8%
  17. 17. COMFORTABLENESS WITH SOMEONE ELSE DEPOSITING MONEY INTO YOUR ACCOUNT WITHOUT A CONFIRMATION 17% 33% 26% 22% 3% I would be very comfortable with such a service I would be somewhat comfortable with such a service I would not be very comfortable with such a service I would not be comfortable at all be with such a service I don’t know / I prefer not to answer Comfortable: 50% Not Comfortable: 47% 39% vs 58% Canadians are split on whether they would be comfortable with a person / company depositing money into their account without consent, with 50% saying they would be comfortable and 47% saying they would not be comfortable. Men are significantly more likely than women (58% vs 39%) to be comfortable. Would you be comfortable with a person or company depositing money into your account without the need for you to confirm or consent to the transaction?
  18. 18. PARTICIPANT PROFILE DEMOGRAPHICS (n=1,507) 14% 24% 18% 13% 10% 21% $100K+ $80-<$100K $60-<$80K $40-<$60K <$40K Household income 33% 29% 28% 7% Master's Degree University- Educated College High School Elementary Prefer not to answer Education 27% 59% 12% 1% Single Married / Common law Divorced / Widowed / Separated I prefer not to answer Yes 29% No 70% Households with children <18 Marital Status 18-24 25-34 35-44 45-54 55-64 65-74 75+ AgeGender Women 52% Men 48% BC 13% AB 11% SK/MB 7% QC 24% ON 39% ATL 7% Region 12% 16% 17% 20% 17% 13% 5%
  19. 19. ABOUT PAYMENTS CANADA Payments Canada ensures that financial transactions in Canada are carried out safely and securely each day. The organization underpins the Canadian financial system and economy by owning and operating Canada's payment clearing and settlement infrastructure, including associated technologies, bylaws, rules and standards. The value of payments cleared and settled by Payments Canada in 2016 was C$51 trillion, or C$201 billion every business day. These encompass a wide range of payments made by Canadians and businesses involving inter-bank transactions, including those made with debit cards, pre-authorized debits, direct deposits, bill payments, wire payments and cheques.

×