How Canadians use payment cards and cheques can help inform credit unions’ card and cheque strategies. The recent Payments Canada report analyses the payment transactions in the Canadian market in 2023 as well as in payment behaviours. This week’s issue of Competitive Intelligence Update focuses on key drivers, emerging issues, relevant developments, and use of different payment methods, focusing on cash, debit cards, credit cards, and prepaid cards.
More Canadians returned to using cash as concern about the pandemic faded. Cash use rebounded strongly in 2023; but the long-term trend shows that Canadians are shifting away from cash and towards electronic payments. Why do Canadians choose to use cash? Are Canadians ready for a cashless society?
Overall, 2023 saw the continued decline in the use of cheques, with volume down six per cent. Decreases were driven by lower consumer use. Why some consumers are using cheques and some are not is discussed.
Representing 30 per cent of total transaction volume, debit cards are the second most used payment method behind credit cards (at 33 per cent). The reasons for choosing debit versus credit cards are reviewed.
Of the different card payments options, all three—credit, debit, and prepaid cards, prepaid cards—increased by five per cent year-over-year in terms of payment volume. Prepaid cards, however, saw stronger year-over-year transaction value growth at ten per cent, compared to a two per cent gain for debit and six per cent for credit.
This week’s issue also looks at the latest developments at Koho and Neo.
To read more on this issue and other research hot topics, read this week’s issue of Competitive Intelligence (CI) Update.
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