Table of Contents
Executive Summary
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- The issues
- Credit and cash are the most popular payment methods
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- Figure 1: Payment methods used, August 2017
- TD is the most popular choice for debit; TD & RBC are the leading issuers of credit cards
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- Figure 2: Choice of FI for debit and credit cards, August 2017
- Around one in four 18-24s would prefer to use debit exclusively
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- Figure 3: Agreement with statements related to debit card usage (% agree), August 2017
- Men over-55 more likely to exceed $2,000 in monthly credit card spending
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- Figure 4: “My average credit card monthly spend exceeds $2,000” (% agree), August 2017
- Young males more willing to pay a higher fee for better credit card rewards
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- Figure 5: Agreement with statements related to credit card rewards, August 2017
- The opportunities
- Debit can be the starting point of a lifelong relationship
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- Figure 6: Agreement with statements related to debit card rewards, (% agree), August 2017
- Three in five consumers prefer to use the card offered by their main FI
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- Figure 7: Agreement with statements about credit cards, August 2017
- Building a win-win relationship with high credit card spenders
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- Figure 8: Agreement with statements related to credit card usage (% agree), 18-44s vs over-45s, August 2017
- What it means
Market Factors – What You Need to Know
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- Canada’s population is aging
- Canada will become increasingly diverse
- Growth in smartphone ownership a boon for mobile banking
- Financial concerns can lead to cautious spending habits
- High participation in loyalty programs drives credit card ownership
- Awareness of mobile payment high; cryptocurrencies is lower
Market Factors
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- Canada’s population is aging
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- Figure 9: Canadian population, by age, 2016
- Canada will become increasingly diverse
- Growth in smartphone ownership a boon for mobile banking
- Financial concerns can lead to cautious spending habits
- High participation in loyalty programs drives credit card ownership
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- Figure 10: Loyalty program participation, by industry, June 2017
- Awareness of mobile payment high; cryptocurrencies is lower
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- Figure 11: Awareness and usage of digital tools related to payments, March 2017
Key Players – What You Need to Know
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- CIBC and PC Financial end partnership; CIBC to rebrand digital bank as Simplii
- Equifax breach has a Canadian impact
- China's Alibaba bringing online payment platform AliPay to Canada
- Venmo testing physical debit card
- PayPal debuts a credit card that offers 2% cash back
- Apple’s new money transfer service Apple Pay Cash to launch in late fall 2017
- Uber launches credit card
Industry Developments and Innovations
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- Canadian developments and innovations
- CIBC and PC Financial end partnership; CIBC to rebrand digital bank as Simplii
- Canadian startup STACK partners with MasterCard
- China's Alibaba bringing online payment platform AliPay to Canada
- RBC launches two new iOS payment options
- Equifax breach has a Canadian impact
- International developments and innovations
- Venmo testing physical debit card
- PayPal debuts a credit card that offers 2% cash back
- Mobile wallet Curve launches 'time travel' tool to let you 'shop in the past'
- Petal announces new credit card that does not require credit scores
- Apple’s new money transfer service Apple Pay Cash to launch in late fall 2017
- Samsung Pay expands in Canada with new partners
- Uber launches credit card
Marketing Campaigns
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- Interac gets consumers to open up to tapping
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- Figure 12: Interac – Open up to flash, September 2017
- American Express targets Millennial life
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- Figure 13: The NEW American Express Cobalt Card – You Do You, September 2017
- Selected campaigns from Mintel Comperemedia
- RBC offers an Apple Watch or iPhone
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- Figure 14: RBC new customer gift, email advertisement, October 2017
- BMO ATM’s make your life easier
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- Figure 15: BMO’s ATM email advertisement, October 2017
The Consumer – What You Need to Know
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- Credit and cash are the most popular payment methods
- TD is the most popular choice for debit; TD & RBC are the leading issuers of credit cards
- Awareness of debit rewards is not high
- Around three in ten would prefer to use debit exclusively
- Men over-55 more likely to exceed $2,000 in monthly spending
- Younger women are particularly stressed about unpaid card balances
- Young males more willing to pay a higher fee for better credit rewards
Payment Methods Used
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- Credit and cash are the most popular payment methods
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- Figure 16: Payment methods used, August 2017
- Older Canadians more likely to prefer “traditional” payment methods
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- Figure 17: Payment methods used, 18-44s vs over-44s, August 2017
- Women have different payment preferences
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- Figure 18: Payment methods used (select), men vs women, August 2017
- Asian Canadians less likely to use debit
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- Figure 19: Payment methods used (select), Asian Canadians vs overall population, August 2017
Choice of Financial Institution for Debit and Credit Cards
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- TD is the leading debit card issuer
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- Figure 20: Choice of FI for debit cards, August 2017
- Desjardins is the leading debit card issuer in Quebec
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- Figure 21: Choice of FI for debit cards, Quebec vs overall population, August 2017
- TD and RBC are the leading choices for credit cards
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- Figure 22: Choice of FI for credit cards, August 2017
- PC Financial more popular among women, Amex among men
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- Figure 23: PC Financial and Amex credit cards, men vs women, August 2017
- Regional differences are significant
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- Figure 24: Choice of FI for credit cards, Quebec vs overall population, August 2017
- TD’s strength among 18-24s
Debit and Credit Card Usage
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- Debit card usage
- Over one third of 18-24s would prefer to use debit exclusively
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- Figure 25: Agreement with statements related to debit card usage, (% agree), August 2017
- Younger consumers relatively more likely to use multiple debit cards
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- Figure 26: Agreement with statements related to debit card usage (% agree), men vs women, August 2017
- Credit card usage
- Three in five consumers prefer to use the card offered by their main FI
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- Figure 27: Agreement with statements about credit cards, August 2017
- Men over-55 more likely to exceed $2,000 in monthly spending
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- Figure 28: “My average credit card monthly spend exceeds $2,000” (% agree), by age and gender, August 2017
- Around a third of 18-34s have used a prepaid card
- Younger consumers more likely to prefer debit
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- Figure 29: Agreement with select statements related to credit card usage (% agree), by age, August 2017
- Older card holders more prolific and responsible users
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- Figure 30: Agreement with statements related to credit card usage (% agree), 18-44s vs over-45s, August 2017
- Chinese Canadians are much more likely to prefer credit over debit cards
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- Figure 31: Agreement with select statements about credit card usage (% agree), Chinese Canadians vs overall population, August 2017
Debit and Credit Card Rewards
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- Awareness of debit rewards is not high
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- Figure 32: Agreement with statements related to debit card rewards, (% agree), August 2017
- Younger users more willing to pay more for better debit rewards
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- Figure 33: Agreement with statements related to debit card rewards (% agree), 18-44 vs over-45s, August 2017
- Scotia debit customers are more aware of debit rewards
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- Figure 34: Agreement with statements related to debit card rewards (% agree), August 2017
- Debit can be the starting point of a lifelong relationship
- Young males more willing to pay a higher fee for better credit card rewards
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- Figure 35: Agreement with statements related to credit card rewards, August 2017
- PC Financial customers are more “functional” users
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- Figure 36: Agreement with statements related to credit card rewards (% agree), August 2017
- Around a third of PC Financial card customers have a “black” card
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- Figure 37: Agreement with statement related to credit card usage (% agree), Desjardins vs PC Financial credit card customers, August 2017
Credit Card Spending and Security
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- Younger women are particularly stressed about unpaid card balances
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- Figure 38: Agreement with statements about credit cards, August 2017
- Men are more interested in paying for balance protection insurance
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- Figure 39: Agreement with statements about credit cards, August 2017
- Men and younger consumers more likely to be influenced by non-reward benefits
- Around three in five consumers agree liability protection enhances safety
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- Figure 40: Agreement with statements about credit cards, August 2017
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Consumer qualitative research
- Abbreviations and terms
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