Nov. 21, 2014, Toronto – Canadian consumers lag far behind
citizens of other countries on mobile payments, yet attitudes suggest mobile
buying will increase, says new research from GfK.
Nov. 21, 2014, Toronto – Canadian consumers lag far behind
citizens of other countries on mobile payments, yet attitudes suggest mobile
buying will increase, suggests new research from GfK Canada.
Mobile payments account for just two per cent of purchases
in Canada, said the research firm in a news release.
Only 21 per cent of Canadian shoppers (consumers who have
shopped in one of 15 categories in the last six months) reported making a
mobile payment online and in-store in the past six months; online purchases
made up 64 per cent of the mobile payment purchases, while 36 per cent were for
in-store sales. Canada’s mobile payment activity pales in comparison to
countries like China (where 83 per cent of shoppers report using mobile
payments in the past six months), Korea (62 per cent), and even the United
States (33 per cent).
The new findings come from an in-depth look at mobile
payments included in GfK’s latest FutureBuy study, which tracks the convergence
of digital and bricks-and-mortar activities in shopping across 15 product
categories. The research shows that, despite attitudinal differences, the
generations are essentially the same in their use of mobile payments, which
account for just two per cent of all transactions in Canada for generation X, generation Y and boomers, and three per cent for generation Z.
The GfK research also reveals major differences in Canadian
attitudes toward mobile payments by generation, with millennials – generations
Y and Z – three to four times as likely to view them as faster or more
efficient than other types of transactions. These younger shoppers show more
confidence in the security of mobile payments – although generation Z is
actually more concerned than baby boomers and others about the possibility of a
personal information breach via mobile payments.
When asked if mobile payments are “faster” or “more
efficient,” 38 per cent to 34 per cent of generations Y and Z agreed either
completely or somewhat – compared to a range of nine per cent to 30 per cent for
gen X and baby boomers. And 31 per cent of those in gen Z said that mobile
payments are 100 per cent secure – compared to just eight per cent for boomers. (See table, below.)
Overall, more than half (55 per cent) of Canadian
respondents agreed completely or somewhat they are worried about the security
of their personal information with mobile payments. PayPal was the preferred
payment method for six of 10 Canadians making mobile payments in-store or
online.
“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 (Consulting) at GfK Canada, in the release. “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.”
Canadian mobile payment attitudes, by generation
(Agreed “completely” or “somewhat”)
| Gen Z (18 to 24) |
Gen Y (25 to 34) |
Gen X (35 to 49) |
Baby boomers (50 to 68) |
|
| “Mobile payments are 100 per cent secure” |
31% | 32% | 22% | 8% |
| “Worried about personal information disclosure” | 61% | 54% | 57% | 55% |
|
“Mobile payments are faster than other methods” |
34% | 36% | 30% | 12% |
| “Mobile payments make shopping more efficient” | 38% | 37% | 27% | 9% |
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