Over one-third of Canadians open to new point-of-sale services to improve their payment experience

New research from Payments Canada shows that over one-third of Canadians are open to using new services at the point-of-sale to improve their payment experience. Payment methods of interest include one-click pay, invisible payments and scan, pay and go payments.

Key study findings:

• 41 per cent of Canadians are either extremely or somewhat likely to use invisible payments when shopping at a store if the option was available.
• 39 per cent of Canadians are either extremely or somewhat likely to use the one-click pay feature when shopping online if the option was available. 
• 35 per cent of Canadians are either extremely or somewhat likely to use scan, pay and go when shopping at a store if the option was available.

One-click pay method

One-click pay is a method of online purchasing that involves creating a personalized data profile to store a consumer’s payment details with the retailer. Once the consumer has made their first purchase on the retailer’s website, a unique token is created from the transaction. This token retrieves the consumer’s information during future purchases on that website with just the press of a button.

One-click pay for online purchasing has a large appeal among Canadians

Thirty-nine per cent of Canadians are either extremely or somewhat likely to use the one-click pay feature when shopping online if the option is available. Those living outside of Quebec are significantly more likely (42 per cent) to use one-click pay for online purchases than those living in Quebec (32 per cent). The same is true for those with a university-level education (43 per cent) versus a high school education or lower (34 per cent). 

Canadians who are either unsure or unlikely to use the one-click pay feature are concerned with storing their personal information online with a retailer or payment processor and/or prefer to verify the purchase payment details themselves. 

Credit card is the preferred payment method for one-click payments

Over two in three Canadians (68 per cent) prefer using their credit card for their one-click pay online purchases. Older Canadians (aged 55+) prefer to use their credit card significantly more than any other age group, primarily because they feel their credit cards offer strong security and protection against payment fraud. 

Conversely, young Canadians (aged 18-34) make up the largest percentage of those who prefer to use their debit card for one-click payments. The most common reason is that they feel this method helps best to avoid going into debt and helps to control their spending. 

Middle-aged Canadians (aged 35-54) are more likely than younger and older Canadians to cite the lack of interest charges for preferring to use their debit card for one-click pay when shopping online (18 per cent versus one per cent and five per cent respectively).

Invisible payments

Invisible payments are a method of paying for purchases at a store involving a checkout-free shopping experience. At the store, consumers scan in with the in-app QR code and proceed with shopping. Upon gathering their items, they can exit the store and a scanner will automatically account for items in their basket and charge their payment card accordingly.

Invisible payments for in-store purchases have an equally large appeal among Canadians as one-click payments do

Forty-one per cent of Canadians are either extremely or somewhat likely to use invisible payments when shopping at a store if the option is available.

Those with an annual household income of $80K or higher are significantly more likely to use this service than those with an annual household income of $40K or lower (48 per cent versus 35 per cent, respectively). Newcomers to Canada (who have resided in Canada for less than five years) are also significantly more likely than longer-term residents to use this service (83 per cent versus 42 per cent respectively).

Security and privacy concerns are primary causes for hesitation around invisible payments

Canadians who are either unlikely or unsure about using invisible payments for their in-store purchases are concerned with safeguarding their personal information and prefer the personal interaction with store employees. Other reasons cited were that respondents are concerned about system errors (e.g., inaccurate prices, being charged for items they did not purchase) and preferring to verify their purchases at a cashier (either traditional or self-checkout).

Young Canadians are more likely than any other age group to use invisible payments

Age appears to be an indicator of interest in using invisible payments. Our research shows that when shopping at a store, 51 per cent of Canadians aged 18-34 are likely to use invisible payments. This drops to 45 per cent of Canadians aged 35-54 and reduces even further to 31 per cent of Canadians 55 years and older.

Scan, pay and go

Scan, pay and go is a payment method that allows the consumer to pay for in-store purchases within an app, without having to go through a physical checkout. Users open the app in a participating store and scan the barcode on each product to add it to their basket. To make their purchase, they check out within the app and pay using their debit or credit card. They confirm their purchase by scanning the on-screen QR code at the confirmation station before exiting the store.

Scan, pay and go payments for in-store purchases are slightly less appealing to Canadians than one-click or invisible payments

Thirty-five per cent of Canadians are either extremely or somewhat likely to use scan, pay and go when shopping at a store if the option is available. Newcomers to Canada (68 per cent) versus those born in Canada (32 per cent) and permanent residents (30 per cent) are significantly more likely to be comfortable using scan, pay and go when shopping at a store.

Young and middle-aged Canadians are most comfortable with scan, pay and go

Many young Canadians (49%) and some middle-aged Canadians (38%) are comfortable with using scan, pay and go when they shop. However, when comparing to the other age groups, most older Canadians (63%) are not comfortable using this payment method.

Overall, interest in new point-of-sale payment methods is growing among Canadians, but addressing data concerns is key

While many Canadians have voiced interest in using new point-of-sale payment methods, many could benefit from a better understanding of how their data is used and kept safe within a retailer’s database (on their website or through their app). Clarity around the logistics of these methods and how system errors are avoided (e.g., inaccurate charges, accidental purchases) could also make Canadians more comfortable with adopting these new technologies.

About the study

The Payments Behaviour Tracker - Consumer survey was compiled to examine consumer interest in new and emerging payment methods. In total, 1,501 Canadian consumers were surveyed using Leger’s online panel between June 27 and July 8, 2022 (wave 2) and September 23 and October 7, 2022 (wave 3) each wave.