Canadians lukewarm on mobile purchases

By Special to MoneySense on November 19, 2014
Estimated reading time: 3 minutes

We make fewer mobile payments than Europeans and Americans

This article is 10 years old. Some details may be outdated.

TORONTO – Hype for mobile payments is growing but Canadians generally aren’t very eager to pay for purchases with their smartphones, suggests a new report. Canadians are still apprehensive about using their phone in lieu of cash, debit or credit cards, according to a study by global research company GfK, which conducted online surveys with consumers in 17 countries. Although Canadians have developed a reputation for being keen early adopters of technology, they were found to be among the least interested in mobile payments. Security fears are a factor, says Stephen Popiel, vice-president of consulting for GfK Canada. Canadians may also be lukewarm on mobile payments since they already have plenty of ways to pay in stores. “The ATM infrastructure is huge and profound in Canada, even when compared with the United States, so the mobile technology itself is partly a solution for a problem that’s not as big of an issue here. We have a seamless ATM and debit card structure here and now the tap technology makes it fast and easy to make a lot of small purchases,” says Popiel. “Now we have to train ourselves: don’t use the wallet, pull out my phone, make sure the app is open. We have to get to a position where this technology is as seamless and easy to use as what we’ve been using for the past 15 to 20 years.” GfK estimates only about two per cent of transactions in Canada are currently made with a mobile device, either in store or while online shopping at home. About 21 per cent of the 1,000 Canadians polled by GfK said they had made a mobile payment in the past six months, compared to 24 per cent of western European respondents, 33 per cent of American respondents, and 39 per cent of Latin American respondents. Mobile payments were seen to be far more popular in Asia, with 83 per cent of Chinese respondents and 62 per cent of Korean respondents saying they had used a mobile device for a purchase recently. Of the Canadians polled, about one in three agreed with the statement “mobile payment is more of a gimmick today than a major way I pay” and four in 10 thought “mobile payment technology is still clunky.” Just over half said they were concerned about the security of mobile payments and putting their personal information at risk. While Starbucks customers are frequently seen using their phones to pay for coffees, and Tim Hortons also accepts mobile payments, those apps are linked to gift cards rather than bank accounts and are less of a security concern, notes Popiel. “There’s still a large percentage of the population who are worried about privacy, worried about information disclosure, and what’s the worst that’s going to happen with their TimmyMe app? They’re going to know I like a double-double? And I run the risk of losing $50 of coffee money,” he says. “The concern for many people is if my entire bank account is linked to this system, that’s where security breaches are more profound.” Popiel believes the Apple Pay platform could spark more interest in mobile payments — if and when it comes to Canada. Currently available in the U.S., Apple Pay allows consumers to pay for purchases at a number of big-name stores including McDonalds, Subway and Whole Foods with newer iPhones and iPads. “The degree to which Apple manages to convince people that they have that safe and secure system is going to determine whether (adoption) increases,” says Popiel. “If they do, it’s going to be a spectacular change, not only in mobile payments, but certainly for Apple as well, as people are going to migrate back to iPhones, away from Android, so they can get that safe and secure mobile wallet.” The polling industry’s professional body, the Marketing Research and Intelligence Association, says online surveys cannot be assigned a margin of error as they are not a random sample and therefore are not necessarily representative of the whole population.

Comments Cancel reply

Spend

How to find a cheap cellphone plan in B.C.

Phone plan prices are all over the map. Here’s how to find an affordable plan that fits your needs...

How to find a cheap cellphone plan in B.C.

MoneyFlex

Gen Z guide to getting more in a tough economy: How to negotiate salary, car deal, phone bills and more

From rent to hair styling, phone to internet plans, these expenses are surprisingly negotiable. How every young Canadian can...

Gen Z guide to getting more in a tough economy: How to negotiate salary, car deal, phone bills and more

Stocks

What is DeepSeek, the Chinese AI company upending the stock market?

Tech industry watchers believe the startup’s success could signal greater competition for the U.S. companies at the forefront of...

What is DeepSeek, the Chinese AI company upending the stock market?

Jacks on Tax

School tax: What can you claim as a deduction on your annual income tax?

Post-secondary education is expensive, but you can cut the cost by taking advantage of these tax breaks.

School tax: What can you claim as a deduction on your annual income tax?

Spend

Taking care of tech: How to get the most life out of your smartphone

Canadians are keeping their mobile phones for longer. Follow these six tips for extending the life of your phone.

Taking care of tech: How to get the most life out of your smartphone

A woman in a lab coat looks at an X-ray on a lightbox

Investing

“A way to leapfrog”: AWS executive says regulated industries moving fastest on AI

Which industries are adopting artificial intelligence and how are they using it? You might be surprised.

“A way to leapfrog”: AWS executive says regulated industries moving fastest on AI

Save

Save money, save the planet: Our favourite products and strategies for eco-friendly living

MoneySense celebrates Earth Day by sharing our editors’ top tips for reducing waste, saving money and shrinking our environmental...

Save money, save the planet: Our favourite products and strategies for eco-friendly living

Chrystia Freeland shown, as the tech industry responds to the federal budget for 2024

Save

How will the changes to capital gains in Canada affect tech sector?

Tech industry warns that the budget's capital gains proposals could cause “irreparable harm.”

How will the changes to capital gains in Canada affect tech sector?

Renovations

How much are solar panels in Canada?

Many eco-minded home owners want to harness the power of the sun. We’ll help you weigh the costs and...

How much are solar panels in Canada?

A Canadian woman looking at a washing machine to buy it.

Strategic Shopper

How to buy the best washing machine and dryer to save money and the environment

In her new book, Candice Batista reveals the best ways to live a sustainable lifestyle—and save money. Here are...

How to buy the best washing machine and dryer to save money and the environment

Canadians lukewarm on mobile purchases

Comments Cancel reply

Related Articles

How to find a cheap cellphone plan in B.C.

Gen Z guide to getting more in a tough economy: How to negotiate salary, car deal, phone bills and more

What is DeepSeek, the Chinese AI company upending the stock market?

School tax: What can you claim as a deduction on your annual income tax?

Taking care of tech: How to get the most life out of your smartphone

“A way to leapfrog”: AWS executive says regulated industries moving fastest on AI

Save money, save the planet: Our favourite products and strategies for eco-friendly living

How will the changes to capital gains in Canada affect tech sector?

How much are solar panels in Canada?

How to buy the best washing machine and dryer to save money and the environment