May 14, 2020, Ottawa, Ont. – New data from a Payments Canada study on payment trends during COVID-19 reveals some dramatic shifts in Canadians’ payment preferences since the pandemic took affect in Canada.
The study compared spending behaviours pre-COVID-19 and at week five of the pandemic, uncovering higher use of contactless payments, electronic payments, e-commerce, online/mobile banking, and lower demand for cash.
Overall, 75 per cent of Canadians reported they were spending less than pre-COVID-19. On average, Canadians left home to go grocery shopping once a week, with 93 per cent indicating they stopped going out completely except for necessities.
For those who were leaving their homes, 42 per cent say they avoided shopping at places that did not accept contactless payments, and 52 per cent tried not to exceed the contactless limit when buying something in-store.
“The COVID-19 pandemic has highlighted the convenience of everything digital, from video conferencing, on-demand entertainment, to digital payments,” said Tracey Black, president and CEO of Payments Canada. “Cash and cheque payments have declined dramatically, having been replaced with contactless payments and other types of electronic payments.
“While we have seen a continued shift towards digital payments over a number of years in Canada, there’s no doubt that the prevailing pandemic has accelerated this shift – and will likely act as a catalyst in transforming the Canadian payment landscape forever.”
A key driver for this decrease in spending is likely the impact the pandemic has had on Canadians’ personal finances. Nearly half (44 per cent) reported a decrease in income, and 51 per cent said the pandemic had a negative impact on their retirement savings or other investments. Additionally, 26 per cent of Canadians indicated there had been a negative impact on their ability to pay bills on time.
Beyond the overall reduction in spending, the study also revealed significant shifts in payment methods and buying behaviours since the start of the COVID-19 pandemic:
Payments Canada ensures that financial transactions in Canada are carried out safely and securely each day. The value of payments cleared and settled by Payments Canada in 2019 was more than $55 trillion or $218 billion each business day.
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