Canadians are divided on evolving payment technologies, according to a new study from Payments Canada. This involves technologies such as generative artificial intelligence (GenAI), social commerce and pay-by-bank.
"Canadians prioritize security and privacy while also expecting ease and convenience in their shopping experience, particularly in the way they pay," Jon Purther, Payments Canada’s director research, said in a statement.
"They seek innovations that strike a balance between these factors. However, Canadians are divided on the appeal of innovations that have the potential to reshape our shopping and payment experiences, with security being a key concern. In our study, we also found that many Canadians had not yet formed a view around their appeal, which infers that they are reserving judgment until they become more familiar with newer technologies."
For example, 43% of Canadians are interested in leveraging GenAI, 44% are not interested and 13% are unsure.
GenAI’s polarizing impact
Going further, younger Canadians aged 18 to 34 have more interest at 56% than middle-aged Canadians 35 to 54 at 48% and older Canadians aged 55 and above at 31%.
As well, 45% of respondents think fraud detection and prevention is the most beneficial way of leveraging GenAI among Canadians.
Canadians have mixed views on the appeal of GenAI to enhance the online shopping experience with 28% considering it appealing, 34% saying it’s unappealing and 38% saying it’s neither. GenAI-enhanced online shopping experiences are more appealing to younger Canadians aged 18 to 34 (39%) compared to middle-aged Canadians (29%) and older Canadians (21%).
Social media-based commerce is less polarizing by comparison, although not widely popular. Overall, 12% of Canadians have sent or received money from a friend or family member using social media platforms, such as Instagram, WhatsApp, Messenger or TikTok.
Overall, 13% of Canadians have made a purchase within social media platforms, such as Instagram, Pinterest and TikTok. Social commerce appeals to 18% of Canadians, with 46% saying it’s unappealing and 36% saying its neither.
Of those who consider social commerce appealing, reasons include convenience and ease (40%), useful and interesting (6%) and a preferential way of purchasing items (5%).
Among those who do not find social commerce appealing, key concerns include security (48%), not being of interest or useful (14%), not using or liking social media (10%) and not wanting to make impulsive purchases (5%).
The popularity of paying-by-bank
Overall, 29% of Canadians find pay-by-bank – the process of transacting directly from their bank account to the merchant – appealing, while 33% do not find it appealing and 38% are neutral.
Newcomers to Canada (53%) and gig workers (47%) are significantly more likely to use pay-by-bank. The key attraction of pay-by-bank is security with 32% of Canadians indicating it offers greater security.
Incentives such as cashback offers or rewards points would encourage 6-% of Canadians to use pay-by-bank. However, only 22% of older Canadians would use pay-by-bank, compared to 34% of young Canadians and 28% of middle-aged Canadians.
Survey methodology
One thousand five hundred Canadians were interviewed online via Leger’s online portal in two waves. The first wave was between February 26 and March 8, 2024, and the second between June 24 and July 5, 2024.
This article Canadians are divided on evolving payment technologiesoriginally appeared on Money.ca
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
