Businesses stand to lose customers from payment friction at check-out
Cutting edge payment platforms such as AliPay, WeChat Pay and modern features such as token ID could drive fulfillment rates at point-of-sale
OTTAWA, Aug. 8, 2018 /CNW/ - Everything in the retail, service, sharing economy and hospitality business is about creating an exceptional customer experience. Yet, according to a new study released today by Payments Canada, friction at the end of the path to purchase in store and online is causing 53 per cent of Canadians to abandon a purchase.
"The high abandonment rates at check-out suggest there is a high cost of not integrating faster, more convenient payment technologies. Canadian consumers are speaking with their wallets, indicating that they will not buy from those businesses that don't make the payment experience easy," said Gerry Gaetz, President and CEO of Payments Canada.
Conducted by Leger Marketing Inc., the survey found that 70 per cent of Canadians who have uploaded an e-wallet such as Apple Pay used this payment type at least once since its launch in Canada. There is also a growing appetite for other emerging payment technologies that cause less friction - 43 per cent of Canadians are interested in invisible or non-check-out payments in store, such as Amazon Go, as well as one-third who are interested in payments via social networking apps like AliPay and WeChat Pay.
"With record levels of overseas travel, many Canadians are getting a taste for new, more convenient digital payment platforms and are expecting to see these technologies roll out in Canada as well," said Gaetz. "Fortunately, we are working with Canadian financial institutions and key government stakeholders to design and implement new payment systems, rules and standards that will make it possible to introduce faster, safer and more data-rich payment options for Canada's businesses and consumers."
Along with social networking apps, 38 per cent of Canadians are interested in using alias or token ID – an alternate identifier tied to a bank account number that could be used across channels, from Twitter to text message – to pay or send money across platforms.
Other consumer insights include:
- One third of Canadians have deposited a cheque using a camera or mobile app and 96 per cent of them find this convenient.
- Canadians living in urban neighbourhoods are more interested in payments becoming more invisible (49 percent) compared to suburban (42 per cent) or rural (31 per cent).
- Four-in-ten Canadians store personal credit card information with a mobile app or online ecommerce site, and the vast majority (86%) feel confident that the app or service provider they are using ensures the security and privacy of their personal credit card information.
- Millennials are the most interested in alias or token ID (52 per cent).
- One-in-six Canadians (16%) have uploaded an e-wallet app in Canada.
The results support the transformation that Payments Canada and the financial services industry are undertaking to modernize the payments infrastructure and rules that underpin payments in Canada. When completed, financial institutions and payment service providers will have a modern, fast and data-rich infrastructure on which to innovate and develop better ways for Canadians to pay for goods and services and transfer money.
The study was undertaken by Leger Marketing Inc., and Payments Canada between April 2 and June 11, 2018. For phase one of the study, an online survey of 1,501 Canadians was completed using Leger's online panel. In phase two, 1,539 Canadians participated. The margin of error for this study was +/-2.5%, 19 times out of 20.
About Payments Canada
Payments Canada ensures that financial transactions in Canada are carried out safely and securely each day. The organization underpins the Canadian financial system and economy by owning and operating Canada's payment clearing and settlement infrastructure, including associated systems, bylaws, rules and standards. The value of payments cleared by Payments Canada's systems in 2017 was approximately $50 trillion or $200 billion every business day. These encompass a wide range of payments made by Canadians and businesses involving inter-bank transactions, including those made with debit cards, pre-authorized debits, direct deposits, bill payments, wire payments and cheques. Payments Canada is a proud supporter of the Catalyst Accord and The 30% Club.
For detailed results from the Payments Pulse Survey: Consumer Edition, please click here.
SOURCE Payments Canada
Tricia Weagant, 613-806-5168, [email protected].
Share this article