Mobile Payments Use Low In Canada
By Cheryl Knight, contributing writer
A new study by market research company GfK revealed the resistance by many Canadians to use mobile payment systems. As a testament to this fact, the survey shows that less than a quarter of Canadians who shopped in-store or online use mobile payment.
Why The Resistance?
With more than 55 percent of survey respondents worried about security when it comes to mobile payments, Canadians prefer to pay in other ways. Though those who did make payments online or in the store preferred to use PayPal.
“While most Canadians have yet to see the benefit of mobile payments, our findings suggest that millennials and even younger consumers will eventually accelerate the adoption of mobile payment methods,” said Stephen Popiel, vice president of Consulting at GfK Canada, in a Mobile Payments Today article. “As usual, Canadians are much more conservative with financial matters, including payment technology. In order to encourage widespread acceptance, financial services companies and device makers will need to come to terms with Canadians’ concerns about security and their sense that mobile payments may just be a gimmick.”
Breakdown By Age And Payment Method
The study also explores mobile payments according to generation. Only 1 percent of Baby Boomers used a mobile device to shop. This figure increased slightly with Generation X, Y, and Z, with mobile device usage sitting at 3, 3, and 4 percent, respectively. When these shoppers make mobile payments, they use smartphones, and 36 percent of those payments are made in-store.
The Perceived Value Of Mobile Payment
Overall, only about one-fifth of Canadians recognize advantages of mobile payment, with 24 percent responding to the survey that mobile payment is faster, 22 percent responding that it makes shopping more efficient, 21 percent responding that it makes payment easier, and 22 percent responding that all payment methods in one place is a major convenience.
Looking ahead, 20 percent of survey respondents say they plan to make more mobile payments in the next 12 months, and 21 percent say they have the ability to make mobile payments important in more online shopping in the next year.