Canadians resist mobile payments
Only 21 percent of Canadian shoppers reported making a mobile payment online and in-store in the past six months, according to GfK survey.
Canadian consumers lag far behind citizens of other countries when it comes to mobile payments, which account for just 2 percent of all consumer purchases in Canada, according to new research from GfK. Yet attitudes among young Canadian adults suggest that mobile buying behavior will accelerate.
Only 21 percent 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 percent of the mobile payment purchases, while 36 percent were for in-store sales.
Canada's mobile payment activity pales in comparison to countries like China (where 83 percent of shoppers report using mobile payments in the past six months), Korea (62 percent), and even the U.S. (33 percent).
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 2 percent of all transactions in Canada for Generation X, Generation Y and Boomers, and 3 percent 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 percent to 34 percent of generations Y and Z agreed either completely or somewhat — compared with a range of 9 percent to 30 percent for Gen X and baby boomers. And 31 percent of those in Gen Z said that mobile payments are 100 percent secure — compared with just 8 percent for boomers.
Overall, more than half (55 percent) of Canadian respondents agreed completely or somewhat that they are worried about the security of their personal information with mobile payments. PayPal was the preferred payment method for 6 in 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 of consulting at GfK Canada. "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."