Half of Canadians used less cash this last year than in the past, suggests a new survey highlighting the Pandemic-accelerated shift in payments culture.
Three-quarters of Canadians have used at least one emerging payment method in the last year, which includes cryptocurrency, digital cards, and “Buy Now, Pay Later” services. According to Mastercard’s New Payments Index, this figure is project to rise to 88% next year.
“In 2020, consumers shifted their payment habits to embrace solutions like contactless tap-and-go payments and online shopping,” Darrell MacMullin, Senior Vice President, Product, Digital and New Payments at Mastercard in Canada, informed The Globe and Mail.
One quarter of Canadians have made a purchase using a digital asset in the past year, and 46% said they would use cryptocurrency more if they understood it better, the survey suggests. Canadians are cautious and crypto remains cryptic.
Most Canadians agree that using biometric technologies like fingerprints and facial recognition for payments is more secure than a PIN or password. However, security of their data is top of mind with regard to such personal and exploitable technologies.
“Buy now, pay later” has become a hot trend in payments. These payments expect to account for up to a quarter of all global e-commerce transactions by 2026. The majority of Canadian consumers have heard of BNPL, however only 30% are comfortable using it, according to Mastercard. Most hesitancy comes from a lack of trust in security.
“Research from Mastercard shows that the adoption of new payment technologies is rising, and consumer appetite for new, fast and flexible digital experiences continue to grow at an aggressive rate,” MacMullin told G&M.
Mastercard recently launched Changeworks, the core mission of which is to support Canadian not-for-profits by helping them improve their technology and data capabilities.