While 56% say they continue to spend less since the onset of COVID-19 (tied with six months ago at 58%), nearly one in three (29%) think they will be better off financially in 12 months and 36% believe the Canadian economy will be in better shape in 12 months. Another 56% of Canadians expect to be in a similar financial situation in 12 months, and 37% believe the economy will be the same in a year.

“While spending levels remain low, the new data suggests that Canadians are seeing a light at the end of the tunnel in terms of financial well-being,” said Cyrielle Chiron, Chief Strategy Officer, Payments Canada. “Now, approximately 18 months after the declaration of a state of emergency in Canada, we continue to see the prevalence of a number of payment trends fueled by a pandemic. Fundamentally, the concerns of Canadians about the physical processing of cash and payment terminals have catapulted a shift towards digital and contactless payment preferences. We are also seeing an increase in the use of e-commerce. While the pandemic may have accelerated these trends, the reality is that innovation in payments continues to change the way we conduct transactions. “

The study provides a snapshot of Canadians’ spending behaviors in relation to the pre-pandemic period, and acts as a follow-up to waves of previous studies in May, September, and December 2020. The new data indicates continued growth. a number of payment trends observed through 2020, including:

Further evolution towards the preference for contactless and digital payments

• 42% of Canadians say the pandemic has changed their long-term digital and contactless payment preferences, like six months ago.
• 57% say they use less cash, compared to 53% six months earlier.
• 35% use checks less like six months ago.
• 42% use their debit card and 43% use their credit cards more against payment terminals, compared to 42% and 47% respectively six months earlier.
• 32% tend to avoid shopping in places that don’t accept contactless, up from 37% six months ago.
• 55% are trying to avoid going over the limit to allow contactless payments, up from 54% six months previously.

Concerns about the physical manipulation of payments continue to be prevalent among Canadians

• 34% say they are not comfortable handling cash, compared to 38% six months previously.
• 32% are uncomfortable touching a debit or credit card payment machine, down slightly from 37% six months earlier.
• 38% use online banking services more than before the pandemic.
• 68% use ATMs less often than before, compared to 67% six months previously.

While overall spending is down, Canadians continue to favor cards and wire transfers

• 35% use credit cards more, compared to 33% six months earlier.
• 19% say they use debit cards more, up from 20% six months ago.
• 28% use wire transfers more, compared to 25% six months earlier.

Canadians continue to use the e-commerce platform for more diverse purchases

• 50% use e-commerce platforms to obtain different products more often than before, compared to 49% six months previously.
• Canadians say they use e-commerce for more diverse purchases than before the pandemic; the most common increases in purchasing categories include: clothing (52%); household items (43%); food and groceries (38%); health and beauty products (36%); electrical appliances (27%) and animal feed (18%).
• Dramatic increase in spending on food and delivery services continues
• 60% of Canadians say they spend more on food than before the pandemic, up from 58% six months ago.
• 33% say they use food delivery services, such as Uber Eats and Instacart more often, up from 28% six months earlier.
• More generally, 46% of Canadians are tipping more than before, compared to 40% six months ago.

Increased preference for new payment channels, including wearable devices, smart home assistance devices, and social media channels

• Assuming they had the option to make payments from a wearable device such as a watch, fitness tracker, or ring, 65% of Canadians said they would use them in either the same way. , or more since the start of the pandemic.
• 59% would be either the same or more likely to use a smart home assistant device, such as Alexa / Google home or a TV, refrigerator or car to make a payment.
• 60% are either more comfortable sending money to a friend or family member using social media, such as WhatsApp, Messenger and TikTok.

Concerns about fraud and cybercrime impacting payment behavior and preferences – but Canadians have a high level of confidence that they are protected

• 50% of Canadians say that fraud and cybercrime issues affect their payment preferences and behavior.
• Despite being aware of the risks of fraud and cybercrime, 66% of Canadians feel protected by their bank, credit union and / or credit card provider when it comes to making payments.