Everything in the retail, service, sharing economy and hospitality business is about creating an exceptional customer experience. Yet, according to a new study released today by Payments Canada, friction at the end of the path to purchase in store and online is causing 53 per cent of Canadians to abandon a purchase.
“The high abandonment rates at check-out suggest there is a high cost of not integrating faster, more convenient payment technologies. Canadian consumers are speaking with their wallets, indicating that they will not buy from those businesses that don’t make the payment experience easy,” said Gerry Gaetz, President and CEO of Payments Canada.
Conducted by Leger Marketing Inc., the survey found that 70 per cent of Canadians who have uploaded an e-wallet such as Apple Pay used this payment type at least once since its launch in Canada. There is also a growing appetite for other emerging payment technologies that cause less friction - 43 per cent of Canadians are interested in invisible or non-check-out payments in store, such as Amazon Go, as well as one-third who are interested in payments via social networking apps like AliPay and WeChat Pay.
“With record levels of overseas travel, many Canadians are getting a taste for new, more convenient digital payment platforms and are expecting to see these technologies roll out in Canada as well,” said Gaetz. “Fortunately, we are working with Canadian financial institutions and key government stakeholders to design and implement new payment systems, rules and standards that will make it possible to introduce faster, safer and more data-rich payment options for Canada’s businesses and consumers.”
Along with social networking apps, 38 per cent of Canadians are interested in using alias or token ID – an alternate identifier tied to a bank account number that could be used across channels, from Twitter to text message – to pay or send money across platforms.
Other consumer insights include:
• One third of Canadians have deposited a cheque using a camera or mobile app and 96 per cent of them find this convenient.
• Canadians living in urban neighbourhoods are more interested in payments becoming more invisible (49 percent) compared to suburban (42 per cent) or rural (31 per cent).
• Four-in-ten Canadians store personal credit card information with a mobile app or online ecommerce site, and the vast majority (86%) feel confident that the app or service provider they are using ensures the security and privacy of their personal credit card information.
• Millennials are the most interested in alias or token ID (52 per cent).
• One-in-six Canadians (16%) have uploaded an e-wallet app in Canada. This is up three percent from 2017.
The results support the transformation that Payments Canada and the financial services industry are undertaking to modernize the payments infrastructure and rules that underpin payments in Canada. When completed, financial institutions and payment service providers will have a modern, fast and data-rich infrastructure on which to innovate and develop better ways for Canadians to pay for goods and services and transfer money.
The study was undertaken by Leger Marketing Inc., and Payments Canada between April 2 and June 11, 2018. For phase one of the study, an online survey of 1,501 Canadians was completed using Leger’s online panel. In phase two, 1,539 Canadians participated. The margin of error for this study was +/-2.5%, 19 times out of 20.