In the present day, Funds Canada launched its annual Canadian Cost Strategies and Developments 2022 report, which analyzes 19.7 billion fee transactions made in 2021, totalling $10.8 trillion, and highlights traits which are reworking the Canadian fee panorama.
The report reveals that the overall Canadian fee market grew by 4 per cent in quantity and 15% in worth from 2020, representing a rebound to pre-pandemic ranges.
Key examine highlights:
- Pandemic modifications long-term fee preferences for 43% of Canadians
- 50% of Canadians use e-commerce platforms extra typically than pre-pandemic
- Contactless fee transaction worth elevated year-over-year in 2021 by 18%
- Bank card use rebounded, growing by six per cent
- Cell funds quantity and worth every grew by 13% year-over 12 months
- Money and cheques declined 9 per cent and 6 per cent respectively in quantity, however elevated 14% and 7 per cent in worth
- On-line switch transactions worth exceeded debit playing cards for the primary time ever in 2021
- Nearly one quarter (22%) of Canadians are comfy making funds utilizing QR (fast response) codes
- 37% of Canadians are comfy utilizing fingerprint, facial, or voice recognition to authenticate a fee transaction
- Purchase now, pay later (BNPL) is starting to take maintain with virtually 1 in 10 (eight per cent) of retailers accepting BNPL and 48% of retailers concerned with providing it
The brand new report reveals that whereas many fee traits stay constant in 2021, there’s continued acceleration in digital, contactless and cell fee adoption.
“The COVID-19 pandemic has impacted how customers and companies make and obtain funds. The elevated choice for digital funds that we noticed within the first 12 months of the pandemic continued in 2021,” mentioned Tracey Black, President and CEO of Funds Canada. “Cost volumes had been uneven in 2021 because of continued lockdowns. Regardless of that, financial exercise returned to pre-pandemic ranges in This autumn. Total, the overall funds market in Canada grew in 2021 pushed by elevated use of digital fee choices.”
From a fee quantity perspective, using credit score and debit playing cards continued to develop and dominate the variety of transactions. Money use continued to say no, a development that accelerated throughout the pandemic. Cheques account for a small fraction of the overall fee quantity and continued to say no. On-line transfers accounted for a small share of whole fee quantity (5 per cent) however utilization continued to develop considerably (26% year-over-year enhance and 469% enhance in comparison with 5 years in the past).
Extra examine findings:
Contactless funds use grew: Many Canadians who switched to contactless funds for his or her day-to-day spending throughout the pandemic continued utilizing these strategies, whether or not because of persevering with apprehensions about COVID-19 transmission or new preferences for contactless funds. For the reason that COVID-19 pandemic began, 43% of Canadians tapped their bank card, and 42% tapped their debit card when paying at a retailer, unchanged from final 12 months.
Cell funds continued to extend amongst Canadians: The elevated use of cell funds continued by way of 2021. Cell fee quantity and worth every grew by 13% from 2020. For the reason that pandemic began, 45% of Canadians who used their cell pockets to make retailer purchases mentioned they had been utilizing it greater than they used to.
E-commerce nonetheless appeals to Canadians regardless of returning to in-store buying: Many Canadians continued utilizing e-commerce for purchases, even after public well being measures had been lifted and shops reopened in 2021. The worth of e-commerce gross sales transactions between January and March had been double that for a similar interval in 2020 and grew by 5 per cent in quantity year-over-year. One-half of Canadians (50%) reported utilizing e-commerce platforms extra typically when in comparison with pre-pandemic, up from 48% in 2020. Thirty-three per cent of Canadians reported utilizing supply companies (e.g., UberEats, Foodora, Instacart) extra, up from 29% in 2020.
Companies adapt to shifts in client funds preferences: Extra companies constructed an e-commerce presence or explored methods to make the web buy expertise simpler and extra seamless in 2021. Fourteen per cent of companies reported investing in a selected digital platform, up from 11% a 12 months in the past. Fourteen per cent of companies reported accepting funds by way of PayPal extra typically, whereas seven per cent reported utilizing a QR code to work together with their prospects and suppliers (e.g., directing prospects to a touchdown web page/web site or social media pages, offering reductions and promotional gives, studying a menu in a contactless manner at eating places), up from 5 per cent in 2020. Equally, customers turned extra comfy with fee improvements that made their on-line buy expertise extra frictionless.
“In 2021, many fee traits remained constant together with the continued demise of paper funds and the acceleration in digital funds, which now symbolize 86% of all transactions,” mentioned Jon Purther, Director of Market Insights, Funds Canada. “Canadians’ choice for contactless and cell funds continues, and we’re seeing growing use and curiosity in additional various fee preferences reminiscent of biometrics, wearables, QR codes, ‘purchase now, pay later’, and digital currencies.”