TSYS 2018 Canadian Consumer Payment Study€¦ · 2018 CANADIAN CONSUMER PAYMENT STUDY 3 INTRODUCTION Improving customer experience starts with monitoring the fast-changing technology

2018 Canadian Consumer Payment Study

Table of Contents

359 10 12 18 21 22 23

25 32 35

41

4446 46

Introduction

Key Insights

Findings & Insights

Payment Types

Payment Preferences

Prepaid Cards and P2P Payments

Contactless

Actions Taken in the Last Year

Most Attractive Card Features and Details on Rewards

Mobile Phone Usage and Preferences

Smart Speakers and Connected Payments

Marketing, Communications, Offers and Banking Activity

Security

Conclusion

Appendix

Respondent Demographics

2 0 1 8 CA N A D I A N CO N S U M E R PAY M E N T ST U DY 2

F I N D I N GS & I N S I G H TS


I N T R O D U CT I O N

Improving customer experience starts

with monitoring the fast-changing

technology landscape — and its impact

on consumer behavior. As such, tracking

key attitudes and activities regarding

technology is the focus of this year’s

Canadian Consumer Payment Study.


I N T R O D U CT I O N

For the fifth year in a row, we’ve surveyed Canadian consumers to track important trends in how they’re thinking, feeling and going about making payments. We asked a variety of questions about how customers pay for different types of purchases, why they use one credit card over another, how they redeem their rewards points and how comfortable they are with mobile offerings. We also asked what features they would be most interested in using, how open they are to emerging technologies such as person-to-person (P2P) payments and ‘smart speakers’ like Amazon’s Echo, and how concerned they are with the security of their personal and financial information. The responses provide valuable insights into consumers’ perspectives that can help financial institutions make more informed decisions about new product offerings, channels for customer communication and marketing programs.

This year, we found that Canadian consumers continue to love their payment cards. According to The Nilson Report, total general purpose cards (debit and credit) transaction volumes were up 8.7 percent between 2016 and 2017, and the number of actual cards grew by 4.1 percent during the same period. Purchase volume also increased and was up 9.5 percent in that time frame.

Consumer interest in mobile and emerging technologies is also on the rise. While traditional payment and purchase channels remain strong, there is a growing interest in mobile, which means it will be critical to any new service or offering. Emerging technologies are also gaining ground, and the use of email and text continues to grow. Consumer willingness to embrace new technologies depends on whether they see it as providing value, being easy to use and secure. Our participants were definitely aware of security issues ― many have made changes to their email and online merchant accounts over the past year as a result ― but they don’t seem to be overly concerned.

Interest in new payment options is also rising; however, consumers still trust their own financial institution more than any other organizations in the payment ecosystem. To remain competitive with these new players, financial institutions will need to pay attention to customer communication and relationship-building strategies. Those that invest in creating increasingly positive experiences for their customers across all phases of the cardholder life cycle will be rewarded with increased engagement.

Our survey included 1,020 Canadian consumers. Participants were required to be more than 18 years of age, to have at least one credit card and one debit card and not work for a financial institution. We also took steps to ensure that the survey sample reflected the age and gender distributions of the Canadian population.

We hope you will find the results useful as you work on existing strategies or projects ― and develop new ones.

52 0 1 8 CA N A D I A N CO N S U M E R PAY M E N T ST U DY

Key Insights


K E Y I N S I G H TS

2Consumers are ready for mobile.Although the use of mobile for payments is still relatively low, consumers expect to rely more on mobile payment options within the next couple of years. More than 50 percent of those surveyed said they are familiar with merchant apps, and 33 percent of those who are familiar with the merchant apps indicated they have already made a purchase in this manner. Currently, consumers’ top two uses for mobile are storing loyalty/rewards cards on their phones and viewing transactions instantly. Considering the number of consumers with smartphones and wireless services, it’s no surprise that all industries and companies are continuing to focus heavily on the digital landscape.

1Canadians continue to love their credit cards.For the fourth year in a row, consumers ranked credit cards as their No. 1 favorite payment method. In fact, this year, credit led in every category except for coffee shop purchases and payments to individuals. For the first time since our study began, consumers from all age groups and income levels said they prefer paying for purchases with credit cards. Sixty-seven percent of our respondents stated they have two or more credit cards, which makes it more important than ever to understand what motivates consumers to use one credit card over another. According to Payments Canada (https://www.payments.ca) Canadians are using credit for increasingly larger percentages of their monthly spending (“Canadian Payment Methods and Trends 2017”). With the rising popularity of credit, the percentage of consumers using debit cards and cash has decreased.

Every payments player wants to maintain a competitive edge. And they can accomplish this goal by understanding what consumers want, integrating useful new technologies, maintaining a degree of personalized relationships and creating an exceptional customer experience throughout the purchase process.

Six insights from our study:



4As technology evolves, consumer interest in new payment methods is growing.Over the last couple of years, person-to-person (P2P) services, which enable consumers to easily pay other individuals, have become easier to use and more widespread. Although cash continues be the preferred way to pay individuals, 55 percent of respondents indicated they have used a P2P service. Canadian consumers are also very familiar with contactless payments. More than 95 percent of respondents were aware of the capability, and 85 percent have used it. We also believe payment usage will increase for connected devices like ‘smart speakers’ (such as Amazon’s Echo, Apple Home Pod, etc.) as a larger percentage of them gain payment capabilities.

3The top reason for using one card over another? Rewards. For the fifth year in a row, loyalty or rewards programs came in as the top influencer when consumers choose between multiple credit cards. Ninety percent of our respondents selected rewards as a feature that causes them to use one credit card over another. This sentiment was consistent across all age groups. Rewards are most often redeemed for merchandise, with cash-back coming in at a close second. Real-time rewards are gaining traction, with an increasing number of card issuers beginning to offer this option. Consumers said they would like to be able to use their loyalty and rewards points for immediate discounts when making a purchase.



6Security matters, but consumers are not overly worried.The almost daily proliferation of news reports on security failures and data breaches prompted us to add questions this year to track consumer attitudes about the safety of their personal and financial information. While many respondents said they’d changed their passwords for email, online banking and retail websites (in addition to checking their credit reports for irregularities), 70 percent said they’re “not very” or only “somewhat” concerned about their data being stolen. This could be because the majority also believes the bank is responsible if their account or personal information is stolen and then used to make fraudulent purchases. They also seem to understand and are comfortable being asked for more information to verify their identities and to obtain new credit cards or loans.

5Consumers want to talk, especially if there’s a problem or an opportunity.Some 43 percent of our respondents felt it was important to have all of their accounts with the same financial institution. Most use the internet or mobile banking apps for regular interactions with their financial institution. However, a large percentage, 69 percent, still want to call customer service and talk to a representative if they have an issue with their card. When it comes to learning about new products and services, 83 percent of respondents were open to receiving marketing communications, although preferences around the frequency varied. New products and services that address identity theft and credit scores/ratings were what potentially interested consumers most.


Findings & Insights



More consumers today are choosing to use credit cards for purchases and payments, but debit cards, cash and alternative electronic methods are also popular options.

T H E N U M B E R O F CO N S U M E RS W I T H M U LT I P L E CR E D I T CA R DS I S G R OW I N G .

This year, 67 percent of respondents said they have two or more credit cards, compared to 63 percent in 2017 and 61 percent in 2016. (The percentage of consumers with only one debit card remained the same.) Given this steadily growing trend, it’s important to understand what motivates consumers to use one card over another.

Payment Types

Exhibit 1:Number of Credit and Debit Cards

0% 80%40% 60%20%

One

Two

Three

Four or more2%

4%

25%

69%

16%

18%

33%

33%

Debit Credit



PayPal was once again the top alternative electronic payment type following credit and debit cards. This year, 49 percent of our respondents indicated they have a PayPal account, with other payment types (listed in Exhibit 2), trailing significantly behind.

PayPal was once again the top alternative electronic

payment type.

Exhibit 2:Other Payment Cards/Accounts Owned

0% 60%40%20% 50%30%10%

PayPalaccount

Store credit card

Other

Prepaid card

Store debit card

Digital or virtual currency

account

49%

21%

9%

7%

4%

2%



Payment PreferencesCR E D I T US E I S G R OW I N G A M O N G A L L AG E A N D I N CO M E G R O U PS A N D I N A L M OST E V E RY CAT E G O RY .

Credit was the overwhelming favorite again this year and the preferred top method of payment for consumers choosing from a list that included credit cards, debit cards, cash and a number of other options. Although the preference for cash decreased from last year, we believe some consumers continue to use it because it’s both anonymous and widely accepted. Exhibit 3 shows preferences over the past four years.

Exhibit 3:Most Preferred Payment Type

0% 80%60%40%20%

2018

2017

2016

2015

60%

28%

8%

44%

38%

13%

47%

33%

15%

46%

34%

14%

Debit card CashCredit card



Noting the significant increase in the use of credit, we wanted to examine variations in preference across different age and income segments. Exhibits 4 and 5 reflect the breakdown of this information.

In previous surveys, debit cards were the preferred payment method for consumers in the 18-24-year-old group. This year, however, credit was the preferred payment type for all age groups. See Exhibit 4.

For the first time in five years, credit was the most preferred payment type across all income groups. In the past, only those with household incomes greater than $50,000 preferred credit. Given the significant increase in the use of credit, however, it’s not surprising that consumers who had previously preferred debit have now shifted to credit. See Exhibit 5.

Exhibit 4:Preferred Payment Type by Age

Exhibit 5:Preferred Payment Type by Household Income

Credit card

18 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65 or olderMost PreferredPayment Type

Age range

Debit card

Cash

56%

29%

11%

63%

27%

7%

55%

35%

8%

60%

28%

7%

58%

28%

10%

65%

22%

9%

Credit card

Less than $24,999

$25,000 - $49,999

$50,000 - $74,999

$75,000 - $99,999

$100,000 - $149,999

$150,000 or more

Most PreferredPayment Type

Total household income

Debit card

Cash

49%

30%

15%

51%

35%

10%

59%

27%

9%

64%

28%

7%

67%

22%

6%

70%

25%

3%

Prefer not to answer

59%

25%

10%



CR E D I T R U L E S F O R M OST STO R E A N D R E STAU R A N T P U R CH AS E S , E XCE PT I N CO F F E E S H O PS .

Credit continued to be the top payment option over debit and cash for buying groceries, gasoline and department store purchases. There was also a shift from debit to credit in the top spot for discount stores.

Exhibit 6:Preference by Store Type

0% 70%60%40%20% 50%30%10%

Department store

Discount store

Gas station/pump

Supermarket/ grocery store

57%

31%

8%

62%

23%

6%

63%

25%

5%

37%

25%

29%

Debit CashCredit

Exhibit 6 shows how the top three preferred payment types compare for each of the store categories.



This year, credit also took the lead as the favored method of payment at fast-food restaurants. Last year, debit was preferred in this category, and cash led the year before. For coffee shops, however, cash is still the top method of payment ― but credit is gaining. Exhibit 7 includes details for preferred payment options at restaurants.

Exhibit 7:Preference by Restaurant Type

0% 70%60%40%20% 50%30%10%

Dine-in restaurant

Fast-food restaurant

Coffee shop

41%

28%

27%

61%

25%

10%

30%

20%

38%

Debit CashCredit



THE PREFERENCE FOR CREDIT EXTENDS TO PAYING ONE-TIME AND RECURRING BILLS AS WELL AS TO IN-STORE AND ONLINE SHOPPING.

Credit remained the top payment option for both one-time and recurring bills. Exhibit 8 shows how the gap between credit and debit has widened this year, mirroring the overall trend toward credit. We believe the ‘Other’ category represents the use of online bill payment services available at the consumers’ financial institutions. Exhibit 8 breaks down bill payment preferences between credit, debit and other methods.

Credit continues to dominate the online shopping and travel categories, as it has since this study began. PayPal significantly trailed credit for the second spot. In the online travel purchase area, a large number of respondents (24 percent) selected ‘N/A’ ― likely due to the fact that they don’t use online travel sites (or even travel at all). See Exhibit 9.

In previous years, we reported that the choice of using credit for online purchases reflected consumers’ security concerns and their preference for using “someone else’s money” at locations where they feel there could be a problem. However, this year, credit is strong across all types of purchase scenarios.

Credit continues to dominate

the online shopping and travel

categories, as it has since this

study began.

Exhibit 8:Preference by Bill Payment

Exhibit 9:Preference by Online Categories

0% 60%50%40%20% 30%10%

Pay bills -one time

Pay bills -recurring

45%

23%

17%

42%

22%

23%

Debit OtherCredit

0% 80%40% 60%20%

Online travel

Online shopping

71%

12%

8%

69%

2%

24%

PayPal N/ACredit



Once again, we asked our survey respondents to tell us which payment form they believe is safest for both in-store and online purchases. Exhibits 10 and 11 show how the results compare over the past three years.

For in-store purchases, Exhibit 10 shows that credit cards remained in the number one position, followed by cash and then debit cards. In keeping with the overwhelming preference for credit we’ve observed in this year’s study, the percentage of respondents who selected credit cards as safest for in-store use was higher this year.

In Exhibit 11, you’ll see that credit cards were also selected as safest for online purchases, by a higher-than-normal percentage. PayPal, in

second place, was significantly down this year due to the strong preferences shown for credit cards. Prepaid cards had a fairly good showing, which makes sense given the top-stated reason consumers use these reloadable prepaid cards is for online purchases.

Exhibit 10:Safest Payment Type for In-Store Purchases

Exhibit 11:Safest Payment Type for Online Purchases

0% 60%50%40%20% 30%10%

Credit card

Cash

Debit card

46%

35%

40%

23%

30%

29%

21%

28%

25%

2017 20162018

0% 80%60%40%20%

Credit card

PayPal

No preference

Prepaid

Debit card

58%

44%

47%

23%

36%

33%

9%

8%

9%

8%

8%

6%

2%

4%

5%

2017 20162018

0% 60%50%40%20% 30%10%

Credit card

Cash

Debit card

46%

35%

40%

23%

30%

29%

21%

28%

25%

2017 20162018

0% 80%60%40%20%

Credit card

PayPal

No preference

Prepaid

Debit card

58%

44%

47%

23%

36%

33%

9%

8%

9%

8%

8%

6%

2%

4%

5%

2017 20162018



Prepaid Cards & P2P Payments/Payments to Individuals

R E LOA DA B L E P R E PA I D CA R DS

Although the number of respondents who had reloadable prepaid cards continued to be low at only 2 percent, this payment method is still a hot topic of interest and discussion in the Canadian market. Payments Canada “Canadian Payment Methods and Trends: 2017” noted that prepaid transactions are the fastest-growing point of sale (POS) transaction type, with a 7 percent year-over-year growth in value. Exhibit 12 measures consumer interest, and Exhibit 13 details the top reasons consumers either have or want to have a reloadable prepaid card.

About a third of our respondents indicated they would be interested in obtaining a reloadable prepaid card. As in other areas, the high usage of credit appears to have impacted several of this year’s trends. Exhibit 12 shows how respondents’ interest in obtaining a reloadable prepaid card has shifted since last year.

Exhibit 12:Interest in Obtaining a Reloadable Prepaid Card

0% 50%40%30%20%10%

No

Yes

Unsure

Already have

35%

27%

32%

37%

30%

35%

2%

1%

20172018



The reasons consumers use a reloadable prepaid card have remained relatively unchanged since last year. A large number of respondents (79 percent) who already had a card or who were open to getting one in the future said they were primarily interested in this option to protect their debit and credit cards from fraud when making

Exhibit 13:Purpose to Use Reloadable Prepaid Card

0% 100%80%60%40%20%

Online purchases

Travel

Instead of a banking account

To provide funds for my child

For my small business

Other

79%

81%

61%

51%

21%

19%

21%

17%

6%

7%

2%

3%

20172018

online purchases ― and to better manage their spending. The second most-popular use for a prepaid card was travel spending, with other purposes trailing significantly behind. Exhibit 13 shows how respondents rated a variety of potential purposes over the past two years.



CAS H A N D CH E Q U E S A R E ST I L L I N P L AY AS P R E F E R R E D M E T H O DS O F PAY M E N T TO I N D I V I D UA L S .

P2P payment options have exploded over the last several years. So this year, we expanded our questions to explore our participants’ awareness and adoption in this realm. Cash remained the overwhelming favorite for making payments to individuals, coming in at 44 percent. However, that’s slightly down from last year’s 48 percent. Cheques, which haven’t been mentioned previously in this report, held steady at 12 percent for both 2017 and 2018. Exhibit 14 shows that despite consumers’ multi-year migration to electronic payments in most other areas, when it comes to making payments to individuals, cheques and cash remain strong contenders.

We wanted to learn more about consumers’ awareness of and experiences with P2P services. Exhibit 15 shows that a significant number of respondents (55 percent) indicated they had used a P2P service, which is up from 48 percent last year.

Only 17 percent had never heard of P2P, and 28 percent were aware but had never used it.

Only 16 percent of respondents who had never heard of or never used a P2P service said they would be “likely” or “very likely” to use one in the next year. However, the growth trajectory for P2P services continues to look very strong.

The growth trajectory for

P2P services continues to look

very strong.

Recently, even social media channels like Facebook Messenger, Siri and others have begun to enter the P2P arena. Even though news articles and press releases continue to highlight the convenience, our survey didn’t reflect this. Of our respondents who either currently use a P2P service or are likely to do so, only 13 percent indicated they’d be “likely” or “very likely” to use one of these social media channels to send a P2P payment.

44%Cash

12%Other

12%Cheque

55%Yes, I have usedP2P payments

28%No, but I wasaware of this

method

17%I have neverheard of P2P

payments

Exhibit 14:Three Top Preferred Payment Methods to Individuals

Note: Four other payment options make up the other 32%.

Exhibit 15:Usage/Awareness of P2P Services



ContactlessAWA R E N E SS A N D US E O F CO N TACT L E SS PAY M E N TS I S CO N T I N U I N G TO G R OW .

In March of 2018, Visa Canada released the results of its survey on contactless and other new payment forms. In that survey, 52 percent of respondents identified themselves as ‘regular users’ of contactless cards. Furthermore, Visa Canada says 48 percent of Canadian POS transactions (as of December 2017) were contactless (https://www.digitaltransactions.net/canadians-embrace-contactless-paymentsbut-are-cautious-about-other-new-payment-forms).

This is the second year we’ve included questions in our survey about contactless payments. We wanted to know more about our participants’ awareness and behavior regarding the contactless feature on their cards. Exhibit 16 shows 95 percent of respondents said they were aware of the feature in 2018, an increase from 89 percent in 2017.

95 percent of respondents are

aware of the contactless feature

on their card.

Exhibit 16:Awareness of Contactless Feature

0% 100%80%60%40%20%

Yes

No

95%

89%

5%

11%

20172018

Of those respondents who were aware of the contactless feature, 86 percent indicated they had made a purchase using the ‘tap’ option (compared with 79 percent last year). When we asked the remaining participants why they hadn’t used the ‘tap’ option, 55 percent chose the reply, “I am not comfortable tapping.” This number is very consistent with last year’s results.



Actions Taken by Consumers in the Last YearWe wanted to know what kinds of actions consumers took over the past year related to making purchases, sending money, using mobile services and overall money management. The two most significant changes in behavior were in mobile categories and are highlighted in Exhibit 17.

Exhibit 17:Actions Taken in the Last Year

M O R E P E O P L E A R E US I N G A P PS T H AT STO R E T H E I R CA R D I N F O R M AT I O N .

We also noticed a fairly significant decline in PayPal accounts being opened. This could be due to the fact that so many people are already using PayPal. Exhibit 17 compares this year’s responses to last year’s.

I made a purchase using a credit card I have on file with the online retailer I shop with most often.

I paid down debt.

I began saving more.

I sent money to another person utilizing a P2P service separate from my bank’s online bill pay (e.g., Interac e-Transfer).

I registered my credit card with an online retailer (e.g., Amazon, Google Play, iTunes, etc.).

A merchant or individual used a mobile phone or tablet as a terminal to accept my payment (e.g., debit, credit, prepaid, etc.).

I opened a new credit card to take advantage of the rewards being offered for travel, merchandise, etc.

I opened an account with PayPal to make online or in-store purchases.

I paid using a mobile phone app that stores my card information.

2017

64%

59%

57%

48%

44%

22%

24%

33%

2018

64%

59%

59%

46%

41%

32%

27%

22%

13%21%



Most Attractive Card Features and Details on RewardsT H E I M P O RTA N CE O F LOYA LT Y / R E WA R DS P R O G R A M S A N D L E SS E N I N G I N F LU E N CE O F F I N A N CE CH A R G E S .

The growing trend of having multiple credit cards makes it especially important to keep track of what drives consumers’ decisions to use one card over another. For the fifth year in a row, rewards led the category as a top influencer for 90 percent of respondents. What surprised us this year was a shift in the importance of finance charges. Last year, this category was the second-highest feature, selected by 57 percent of respondents. This year, it was tied for third place with only 44 percent of the respondents listing finance charges/interest rates as an influencing factor. Exhibit 18 shows the breakdown for 2017 and 2018.

Digging deeper, we wanted to see how these responses varied by age and income. All age groups and income levels consistently chose rewards as the most attractive feature. However, we did start seeing some differences in how respondents felt about the second-ranked categories. With every income level, card brand was the second most important influencer. But for people under the age of 44, that second-place influencer was finance charge/interest rate and payment flexibility. It’s possible that younger consumers are more concerned about finance charges and payment options because they’re more likely to carry balances than those in the older age groups, who are more likely to pay off their cards in full.

Exhibit 18:Features That Cause Consumers to Use One Card Over Another

0% 100%80%60%40%20%

Payment options/

flexibility

Finance charge/

interest rate

Customer service

provided by the issuer of

my card

Card brand (e.g., American

Express, Mastercard,

Visa)

Type of rewards

39%

46%

44%

57%

44%

52%

59%

52%

90%

87%

20172018



CA R D H O L D E RS P R E F E R M E R CH A N D I S E A N D CAS H - BACK W H E N R E D E E M I N G LOYA LT Y P O I N TS .

Last year, 65 percent of respondents reported having a loyalty/rewards program attached to their most preferred credit card. This year, that number grew to 78 percent reflecting the overall growth in the preference for using credit cards. Given the overwhelming strength of rewards as an influencer, we asked questions to explore how people use their loyalty/rewards points.

Last year, cash-back was number one. This year, we found that the majority of consumers most frequently redeem their rewards points for merchandise (59 percent), followed by cash-back (56 percent), gift cards (54 percent) and travel (53 percent). Less frequently, a smaller number ― 27 percent of respondents ― redeem their points for experiences, which is consistent with the results from previous years. Exhibit 19 shows the breakdown of categories by frequency.

Exhibit 19:How Frequently and for What Rewards Are Redeemed

0% 80%40% 60% 70%20% 30% 50%10%

Never

Once a year or less

A few times a year

More than once a month

About once a month

2%

3%

6%

1%

6%

3%

4%

7%

2%

6%

7%

20%

20%

15%

16%

15%

27%

25%

34%

28%

73%

46%

41%

47%

44%

Gift cardsExperiences Merchandise Travel Cash-back



Mobile Phone Usage and PreferencesAccording to Newzoo’s 2018 Global Market Report, 72.1 percent of Canadians own a smartphone (https://newzoo.com/insights/rankings/top-50-countries-by-smartphone-penetration-and-users/). And 90 percent subscribe to wireless services (www.cwta.ca/facts-figures). Across the board, Canadian industries and companies are heavily focusing on the digital landscape. Many have appointed chief digital officers to spearhead organizational efforts in this area, as mobile services have become key strategic components in both attracting and retaining business. It seems like we see almost daily news reports about companies that are closing or entering bankruptcy, at least in part, because they failed to adapt quickly enough to changing consumer preferences for online and mobile services. This is true for financial institutions and payment companies as well.

Mobile services are increasingly

important in conducting

daily activities, particularly

with how consumers manage

their accounts.



S M A RT P H O N E US E RS L I K E ACCO U N T S E CU R I T Y F E AT U R E S A N D I N STA N T R E WA R DS .

We asked our survey participants which features they would be most interested in using on their mobile phones. The top three were: being able to immediately stop a transaction not made by them (61 percent), being able to use loyalty/rewards points for discounts at the time of a purchase (53 percent), and being able to turn off a payment

card to prevent unauthorized use (51 percent). These responses reflect what we’ve seen already in regard to consumers’ growing desire to better manage their cards and use rewards points in real time. This year’s responses also reflect that consumers are more open to receiving instant offers and promotions. Exhibit 20 shows how this year’s responses compared to last year’s.

Exhibit 20:Mobile Features: Moderate or Higher Interest

0% 70%60%40%20% 30% 50%10%

Use your phone to immediately stop a transaction that was

not made by you

Instantly view transactions made with your debit or credit cards

Keep all your loyalty/rewards cards on your phone so you

can present the right one when checking out

Alerts sent to your mobile phone each time a purchase is

made with a card

Ability to use your phone to turn your payment card on or off to

prevent unauthorized use based on various criteria

Ability to use your card's loyalty/rewards points for immediate discounts when

making a purchase

Use a mobile app to change the PIN on your

debit or credit card

Receive instant offers and promotions for the store

you are visiting

Store your government-issued identification, such as a

driver's license, on your phone

Use a wearable device, such as a smart watch, to

make a payment

40%

36%

18%

18%

28%

28%

29%

31%

44%

41%

61%

60%

47%

49%

51%

42%

53%

56%

47%

36%

20172018



E A R LY M O B I L E A D O PTO RS A R E V I E W I N G T R A N SACT I O N S I N STA N T LY A N D STO R I N G LOYA LT Y / R E WA R DS CA R DS .

We also asked our survey participants which mobile features they were already using. Given the relatively early stages of many of these features, the percentage of those who already use the features currently lags behind consumer

Exhibit 21:Mobile Features Consumers Already Use

Alerts sent to your mobile phone each time a purchase is made with a card

Use a wearable device, such as a smart watch, to make a payment

Store your government-issued identification, such as a driver’s license, on your phone

Use a mobile app to change the PIN on your debit or credit card

Keep all your loyalty/rewards cards on your phone so you can present the right one when checking out

Use your phone to immediately stop a transaction that was not made by you

Instantly view transactions made with your debit or credit cards

Ability to use your phone to turn your payment card on or off to prevent unauthorized use based on various criteria

Ability to use your card’s loyalty/rewards points for immediate discounts when making a purchase

Receive instant offers and promotions for the store you are visiting

2017

N/A

1%

2%

1%

4%

1%

5%

1%

2018

4%

1%

1%

2%

7%

2%

9%

2%

N/A5%

2%2%

interest. The most-used feature was instantly viewing transactions made by debit or credit cards (9 percent). Following that was keeping loyalty/rewards cards on the phone to use when making a purchase (7 percent). Mobile features present strong opportunities for issuers, who can provide these types of mobile services to their cardholders. Exhibit 21 compares responses for 2017 and 2018 (where the data was available).



US E O F M E R CH A N T A P PS A N D M O B I L E WA L L E TS A R E O N T H E R I S E ― PA RT I CU L A R LY W I T H YO U N G E R CO N S U M E RS .

Consumer familiarity with using merchant apps to pay for goods and services rose 9 percentage points this year. When we examined how the responses varied by age, we discovered significant differences. For those in the 18-24-year-old group, 80 percent of respondents said they were familiar with the process, compared to just 36 percent of those 65 or older. Exhibit 22 shows responses from the last two years.

Exhibit 22:Familiarity With Using Merchant Apps to Pay for Goods and Services

Exhibit 23:In-App Purchases Made (Answered by Those Who Had Familiarity With the Process)

Yes

No

2017

47%

53%

2018

56%

44%

I have made an online purchase using a merchant’s mobile app.

I have made an in-store purchase using a merchant’s mobile app.

2017

27%

18%

2018

33%

19%

We also wanted to know if our survey participants who were familiar with merchant apps had actually used the app to make a purchase. In Exhibit 23, you’ll see that between 2017 and 2018, the number of participants using a merchant app to make an online purchase grew from 27 percent to 33 percent. However, there was no significant change in the percentages for in-store merchant app purchases. Based on earlier responses, offering consumers the ability to redeem rewards within the merchant app would likely create more interest for both in-store and online purchases.



For the past three years, we’ve included a section on mobile wallets to discover how willing our participants are to load debit and/or credit cards onto their phone for use in making payments. According to the responses, consumer reluctance is declining dramatically. This more open interest in mobile wallets is supported by the fact that the number of participants who said they would never

load a debit card into a mobile wallet decreased from 42 percent in 2016 to 27 percent in 2018. Not surprisingly, respondents in the 18-24-year-old age group were more likely to load a card than those in older groups. Exhibit 24 and Exhibit 25 track the changes over the past three years in participants’ likelihood to load debit and credit cards.

Exhibit 24:Likelihood of Loading a Debit Card Into Mobile Phone or Wallet

Exhibit 25:Likelihood of Loading a Credit Card Into Mobile Phone or Wallet

0% 50%40%20% 30%10%

Never

Not likely

Neutral

Definitely

Likely

Already loaded

20172018 2016

0% 50%40%20% 30%10%

Never

Not likely

Neutral

Definitely

Likely

Already loaded

27%

29%

20%

15%

5%

5%

26%

27%

20%

17%

5%

6%

34%

28%

18%

13%

4%

4%

33%

26%

18%

14%

5%

5%

42%

22%

16%

12%

6%

2%

41%

21%

15%

14%

6%

3%

20172018 2016

0% 50%40%20% 30%10%

Never

Not likely

Neutral

Definitely

Likely

Already loaded

20172018 2016

0% 50%40%20% 30%10%

Never

Not likely

Neutral

Definitely

Likely

Already loaded

27%

29%

20%

15%

5%

5%

26%

27%

20%

17%

5%

6%

34%

28%

18%

13%

4%

4%

33%

26%

18%

14%

5%

5%

42%

22%

16%

12%

6%

2%

41%

21%

15%

14%

6%

3%

20172018 2016



CO N S U M E RS B E L I E V E M O B I L E W I L L TA K E O N A L A R G E R R O L E I N T H E I R F U T U R E P U R CH A S I N G B E H AV I O R .

It’s always interesting to understand what consumers believe about their future payment habits. For the past two years, we asked our respondents to predict what percentage of their in-store purchases would be made using their phone instead of physical cards over the next two years. This year, we only asked this question of respondents who said they were likely to, definitely would or already have loaded a debit or credit card into a mobile phone or wallet.

Exhibit 26 shows that 91 percent of these respondents believe that over the next two years, 25 percent or more of their purchases will be made using a mobile phone versus a physical card. Although many of these individuals may not have loaded their debit and/or credit card into a mobile wallet yet, clearly they believe they will be doing so in the near future.

CO N S U M E RS P R E F E R TO M A K E T H E I R OW N PAY M E N T CH O I CE S OV E R AU TO M AT I O N .

Consumers have already established that they frequently use different payment forms depending upon where they are shopping and dining and what they are purchasing. We asked the same subset of likely mobile wallet users from the previous question how likely they are to use an application that automatically decides which card to use (based upon preset preferences). In Exhibit 27, you can see that 38 percent of respondents said they would “likely” or “definitely” use this feature; 30 percent said they were “not likely” or would “never” use it; and 31 percent remained neutral. While there may be opportunities for this kind of application in the future, for now, it seems that consumers prefer to remain in control of their payment choices.

Exhibit 26:Percentage of In-Store Purchases That Will Be Replaced by the Use of Your Phone vs. a Card

Exhibit 27:Likelihood of Using an Application That Automatically Decides Which Card Is Used

Note: Answered by likely mobile wallet users.

20%75% of

purchases

35%50% of

purchases

23%25% of

purchases

9%0% of

purchases

13%100% of

purchases

0% 50%40%20% 30%10%

Never

Not Likely

Neutral

Definitely

Likely

12%

18%

31%

29%

9%



CO N S U M E RS T R UST T H E I R OW N BA N KS T H E M OST F O R M O B I L E PAY M E N T A P PS .

We asked which mobile payment providers our survey participants would most trust to safeguard their personal and financial information. Overwhelmingly, across all age groups, respondents chose their own financial institution. Exhibit 28 shows the range of options and responses from the past two years.

CO N S U M E RS I N CR E AS I N G LY T R UST FACI A L R E CO G N I T I O N F O R M O B I L E AU T H E N T I CAT I O N .

Our final mobile-specific question explored consumer comfort levels with various mobile authentication methods, including passcodes, fingerprints, voice recognition and camera/facial recognition. The traditional passcode method continues to rank first at 64 percent, followed closely by fingerprints at 52 percent. Comfort levels increased across all of the categories from last year, reflecting growing familiarity with all types of authentication methods. Facial recognition showed the most significant increase, which we attribute to the introduction of mobile devices incorporating this feature. Exhibit 29 shows how participants responded over the past two years.

Exhibit 28:Most Trusted Source for Mobile Payment Apps

Exhibit 29:Comfort Level With Various Forms of Mobile Authentication

0% 60%20% 40%

My own primary financial

institution/bank

I am not interested in a

mobile app

Mobile device manufacturer

(e.g., Apple, Samsung, etc.)

Payment network/brand card (e.g.,

Visa, Mastercard, American Express)

Mobile device operating system

provider (e.g., Apple/IOS, Android, etc.)

Mobile network operator (e.g., Rogers, Telus,

Bell, etc.)

Online retailer (e.g., Walmart,

Costco, Amazon, eBay, etc.)

Department store/warehouse club

(e.g., Walmart, Canadian Tire,

Costco, etc.)

48%

36%

7%

3%

0%

2%

1%

1%

48%

35%

7%

5%

2%

1%

1%

0%

20172018

0% 80%60%20% 40%

Passcode

Fingerprint

Voice recognition

Facial recognition

60%

50%

28%

21%

64%

52%

36%

24%

20172018



Smart Speakers and Connected Payment DevicesLast year, we began asking participants about their ownership and use of ‘smart speakers,’ such as Amazon’s Echo, Apple Home Pod, etc. The results were understandably low, as these products were not yet widely available in Canada. This year, we continued to explore the category and added a few questions about connected payment devices.

Exhibit 30:Own a Smart Speaker

0% 100%80%60%20% 40% 90%70%50%10% 30%

Yes

No

16%

84%

14%

86%

20172018

Similar to last year, ownership and use of smart speakers and other connected devices is still quite low at 14 percent. Among owners, the top reported usage is for music and entertainment (91 percent), overtaking last year’s preference for questions and answers, which took the second spot this year (80 percent). See Exhibits 30 and 31.



We wanted to understand how people who have adopted smart speakers or connected devices are using these technologies. Across all categories, while ownership has not grown, usage increased from last year across the different applications. Exhibit 31 shows the overall breakdown.

Exhibit 31:Smart Speaker Uses

0% 100%80%60%20% 40% 90%70%50%10% 30%

To shop/purchase items (e.g., Amazon)

To make lists

Fun and games (e.g., jokes,

jeopardy, etc.)

Smart home (e.g., thermostat,

lights, TV, etc.)

Help around the house (e.g., timers

and alarms, etc.)

Questions and answers

News and information

Music and entertainment

26%28%

47%31%

46%34%

47%22%

70%21%

80%60%

76%46%

91%43%

20172018



CO N S U M E RS A R E H E S I TA N T TO CO N S I D E R US I N G S M A RT S P E A K E RS F O R PAY M E N TS , CI T I N G S E CU R I T Y CO N CE R N S A N D SAT I S FACT I O N W I T H T H E I R CU R R E N T PAY M E N T M E T H O DS .

We were also interested in understanding what consumers thought about using smart speakers in the future for making purchases or payments. Out of the entire survey pool (not just those who already have a device), 11 percent said they would consider using a smart speaker to make payments in the future ― however, less than 1 percent indicated they have already done so. Then, we explored the reasons why our respondents were reluctant to use a smart speaker for purchases or payments. The top reason, shown in Exhibit 32, was security concerns (60 percent), followed by 35 percent who believe the way they currently pay is easier.

“Other” was listed by 5 percent of respondents. In their explanatory comments, they included a variety of reasons for not wanting to use smart speakers for payments, including: “Too easy to spend money;” “I prefer to make purchases when

I want them and not a device purchasing for me;” “In case it misunderstood me and made a wrong payment;” and ”The idea of paying to put a device that can eavesdrop in my home is insane.”

There’s been a lot of talk in the news lately about how consumers will use cars and other internet-connected objects to complete a variety of tasks, including making payments. Gartner Research estimates that by 2020, more than 250 million vehicles worldwide will include some form of embedded connectivity. And a recent Visa and pymnts.com study predicts that more than $210 billion in annual commuter commerce is at stake. You can read more about this in our ngenuity article, “Driving Commerce Inside the Connected Car ― Yes, You Can Pay From the Dashboard.”

We asked our survey pool how likely they would be to use these types of connected payment devices. As you can see in Exhibit 33, interest is currently quite low, but this is an area we will continue to monitor as this technology becomes more widespread.

Exhibit 32:Reasons for Not Using a Smart Speaker to Make Purchases/Payments

Exhibit 33:Likelihood of Using a Connected Payment Device

60%Securityconcerns

5%Other

35%Easier to

pay the way Icurrently pay

0% 50%40%20% 30%10%

Very unlikely

Unlikely

Neutral

Very likely

Likely

32%

21%

33%

10%

4%



Marketing, Communications, Offers and Banking ActivityIt’s no secret that consumers entrust their Financial Institutions (FIs) with a great amount of their personal data ― much of which they don’t share with other brands, or even their closest friends. The amount of customer data that card issuers have makes them uniquely positioned to provide an extraordinary level of personalized communication. In this section of our survey, we wanted to monitor how comfortable consumers are around communications and marketing, as well as how they prefer to interact with their FIs.

E X I ST I N G CUSTO M E RS A R E ST R O N G P R OS P E CTS F O R N E W P R O D U CTS A N D S E RV I CE S .

For the third year in a row, more than 40 percent of survey participants said it was “important” or “very important” to have all of their financial products at the same banking institution/provider. This is good news for FIs wanting to increase the number of products and services their existing customers have. See Exhibit 34.

Exhibit 34:Importance of Having Accounts With Same FI

0% 40%20% 30%10%

Not at all important

Not important

Neutral

Very important

Important

8%

19%

30%

30%

13%

9%

18%

28%

31%

14%

7%

19%

30%

31%

13%

20172018 2016



T H E I N T E R N E T A N D AT M S A R E T H E M OST CO M M O N CH A N N E L S F O R I N T E R ACT I O N .

Exhibit 35 breaks down the various channels consumers prefer to use to interact with their banks.

CUSTO M E RS P R E F E R E L E CT R O N I C M E T H O DS F O R CO M M O N BA N K I N G ACT I V I T I E S .

When we explored how consumers conduct their banking activities electronically, we separated our audiences into two groups: those who use mobile banking apps and those who bank via the internet (using a smartphone, tablet or personal computer). The questions were tailored for each group, but the top results came out the same. Exhibits 36 and 37 demonstrate that whether consumers use mobile banking apps or the internet, their top four activities are: viewing balances, viewing recent transactions, making bill payments and transferring funds.

Exhibit 35:How Interacting with Bank if Once a Month or More Frequently

Exhibit 37:Banking Activities Conducted: Website

Exhibit 36:Banking Activities Conducted: Mobile App

0% 40% 50% 60% 70% 80% 90%20% 30%10%

View balance

View recenttransactions

(payments,deposits)

Make billpayments

Transfer funds

Contactcustomer service

Make mobilecheque deposit

91%

81%

70%

37%

67%

9%

0% 80% 100%40% 60%20%

View balance

View recenttransactions

(payments,deposits)

Make billpayments

Transfer funds

Contactcustomer service

Reordercheques

Open a newaccount/apply

for credit

91%

82%

79%

18%

68%

16%

19%

0% 80%60%40%20%

Calling customer support

ATM (automated teller machine)

Walking into a branch

Banking via the internet on your

smartphone or tablet

A banking app from your financial institution on

your mobile device

Banking via the internet on your personal

computer

10%

58%

40%

75%

46%

45%



E M A I L I S T H E TO P CH O I CE F O R M OST CO M M U N I CAT I O N S .

We asked our survey participants how they would like to be contacted by their FIs regarding various types of information. The overall preferred channel was email, which reflects the results from the past three years. The one exception was in how respondents wanted to be alerted about the potential unauthorized use of an account. In that case, a combination of both phone calls and text messages outpaced email. Exhibit 38 shows the overall preferences by type of communication and the preferred channel.

Exhibit 38:Preferred Channel for Receiving Communications From Your Financial Institution

Marketing/special offers

Availability of new products

Change in terms of your account (e.g., interest rate, fees, etc.)

Potential unauthorized use of your account

Significant change to your account (e.g., address change, new card request, etc.)

Purchase transactions

Do not send Mail Email

27%

26%

9%

13%

12%

27%

54%

56%

55%

8%

8%

18%

6%

15%

13%

37%

51%

53%

Phone / text

2%

1%

3%

22%

10%

6%

Phone call

1%

1%

2%

20%

12%

4%

Social media

2%

2%

1%

1%

1%

1%

Mobile alert

1%

2%

2%

6%

3%

5%



I F T H E R E ’ S A P R O B L E M , CO N S U M E RS WA N T TO S P E A K W I T H A P E RS O N R I G H T AWAY .

While we’ve noted that customers prefer using the internet and ATMs for normal, everyday transactions, if there’s an issue with a payment card they overwhelmingly prefer to “call customer service.” Visiting a branch was a distant second, followed by emailing customer service. Interestingly, there was a decrease this year in

Exhibit 39:Preferred Method of Communication of an Issue

0% 80%40% 60%20% 70%30% 50%10%

Chat with customer service via their

mobile app

Chat with customer service via their website

Social media (e.g., Facebook, Twitter)

Walk into a branch

Email customer service

Call customer service to talk to a representative

1%

1%

3%

5%

1%

1%

21%

15%

8%

9%

66%

69%

20172018

people who would visit the branch and an increase in those who would contact the bank via online chat (on the website). Exhibit 39 shows how this year’s responses compared to those in 2017.

When we looked at the breakdown by age groups, we found that 18-24 year olds were more likely to walk into the branch than any other age group. We believe this is due to their lower comfort level and experience with financial services.

CO N S U M E RS P R E F E R TO R E CE I V E M A R K E T I N G M E SSAG E S A B O U T O N CE A M O N T H .



When we asked respondents who were willing to receive marketing and special offers from their bank how often these messages should be sent, 48 percent said once a month (which is similar to results from previous years). In the No. 2 spot, 27 percent said they’d like to be able to decide how often to receive materials. See Exhibit 40.

CO N S U M E RS A R E I N T E R E ST E D I N P E RS O N A L I Z E D M A R K E T I N G A N D S P E CI A L O F F E RS .

Exhibit 40:Preferred Frequency of Receiving Special Offers

Exhibit 41:Willingness to Receive Coupons/Special Offers

Exhibit 41 shows that 83 percent of the same subset of respondents said they would be “somewhat” or “very interested” in receiving coupons and special offers based on information their financial institution collects about their purchase history. Only 17 percent of respondents were not interested. That’s great news for those planning or already executing on campaigns geared toward specific payment behavior.

CO N S U M E RS A R E I N T E R E ST E D I N I D E N T I T Y T H E F T P R OT E CT I O N A N D CR E D I T S CO R E R AT I N G .

5%Never

48%Once a month

11%Once aweek

9%Once a year

27%I want the

ability to decide how often

61%Somewhatinterested

17%Not at all

interested22%

Veryinterested



We wanted to learn more about what other types of products and services consumers would like their financial institutions to offer. This year, we added two items to the list: discounted tax software and financial planning. Both of these new options performed fairly well. However, similar to the results from last year, our respondents’ top choices were identity theft protection and credit score/rating. The raw percentages for these were lower this year because, while respondents were able to choose multiple products and services, many only chose one ― and there were two additional options. The responses can be found in Exhibit 42.

Security:

Exhibit 42:Other Products and Services

0% 40% 50%20% 30%10%

Something else

Discounted tax software

Financial planning

Identity theft protection

Nothing

Credit score/rating

2%

16%

25%

41%

51%

34%



Consumers Are Aware, but Not Overly Concerned

P E O P L E A R E CH A N G I N G T H E I R PA SSWO R DS TO S E CU R E T H E I R P E RS O N A L DATA A N D ACCO U N TS .

New to the survey this year is a section aimed at understanding consumer sensitivity and behavior around security. In light of numerous reports in the news of security failures and breaches, we wanted to know what actions, if any, our respondents had taken over the past year to ensure the security of their personal data and accounts. We also wanted to know how they felt about being asked for additional information geared at preventing fraudulent behavior. Exhibit 43 shows that the most common action was changing email, online banking and retail account passwords, followed by requesting and reviewing credit reports to check for abnormalities. As part of our inquiry into consumer attitudes on security,

0% 60%40%20%

Shop at fewer online sites

Shop online less frequently

Signed up for credit monitoring or identification

protection services

Changed my online banking passwords

Changed passwords for my email

Obtained and reviewed my credit report to look

for any irregularities

Changed passwords on the websites where

I shop frequently

36%

32%

18%

47%

53%

53%

41%

Exhibit 43:Actions Taken in the Last Year to Secure Data/Accounts



we asked participants who they thought was responsible if their personal information was stolen and used to make fraudulent purchases or withdraw funds from their account. In Exhibit 44, you can see that 40 percent of respondents believe their bank is responsible, followed by 35 percent who think the store or merchant where the information was stolen should be responsible, followed by 25 percent who listed the card network as responsible if a credit card was used fraudulently.

CO N S U M E RS ’ CO N F I D E N CE I N T H E PAY M E N T

SYST E M R E M A I N S FA I R LY H I G H .

We asked our participants how concerned they are that their account or personal information could be stolen. Their responses, displayed in Exhibit 45, indicated that the majority is only “somewhat” or “not very” concerned ― while only 30 percent indicated extreme concern.

Exhibit 44:Who Is Responsible If Account or Personal Information IsStolen/Fraudulent Activity Occurs?

Exhibit 45:Concern About Information Being Stolen

0% 60%40%20%

My bank

The store or merchant where my information

was stolen

The card networks if it iscard related (e.g., Visa,Mastercard, American

Express)

The government

Other

The credit bureaus

40%

30%

25%

1%

0%

4%

58%Somewhatconcerned

30%Extremelyconcerned

12%Not very

concerned



Over the past few years, financial institutions have been combatting fraud by increasing the amount of information consumers are required to provide in order to confirm their identity and apply for new loans and credit cards. As a result, these processes take longer and require more effort on the part of the customer, which isn’t always in alignment with the goal of providing the best possible customer experience. We wanted to know whether or not consumers understand why they’re being asked for this additional information and measure

Exhibit 46:Agreement Level Regarding Data/Verification Requested

0% 60%40%20% 30% 50%10%

I understand they are asking for more

information due toincreases in fraud and

identity theft

I don't mind when I am asked a variety of

questions to confirmmy identity when I call

to inquire about the status of my new

card/loan

The time involved to complete an application

for a new loan/credit card takes too long

I am comfortable providing the

information requested when I am asked for

detailed personal information when

applying for a new loan or card

31%

46%

19%

2%

1%

26%

45%

23%4%

3%

5%

22%

45%

20%

7%

13%

41%

31%

10%

5%

AgreeStongly agree Neutral Disagree Stongly disagree

their level of comfort with the situation. In Exhibit 46, survey respondents were asked to rate the degree to which they agreed or disagreed with four statements. Most of the responses were neutral or better, which seems to indicate that our respondents generally understand the security issues behind why they are being asked for more information and are willing to provide it.


Conclusion


CO N CLUS I O N

Consumers are embracing services and technologies that are easy to use, secure and provide value.Although consumers are sometimes slow to adopt emerging technologies ― such as mobile payment options ― our survey respondents actually see themselves using these services in the not-so-distant future. The trend toward smart speakers and connected devices has yet to gain mainstream momentum but is worth continuing to watch. Consumers are most likely to embrace new offerings that provide specific value and seem easy to use and secure ― especially if they’re offered by the individual’s own financial institution.

Security continues to be important, although consumers are not overly concerned about the safety of their personal data or financial accounts. Most people prefer to use self-service banking apps or websites to handle routine activities; however, they prefer to call a customer representative if there’s ever an issue with a card. Other than for resolving payment card issues, younger consumers are more likely than others to use digital offerings, but that usage is growing across all age groups.

Rewards and loyalty programs are the single most important factor influencing the choices of people with more than one credit card. Moving forward, rewards programs that will allow consumers to instantly receive discounts or redeem points via their mobile device at the time of purchase will be of particular interest.

The results of this study are consistent with industry-wide reports on the growth in popularity for using credit to make purchases and payments in almost every category. However, it’s important to keep in mind that all of our participants were required to have at least one credit and one debit card. The results would certainly look different if we had included individuals without access to these forms of payment.


A P P E N D I X

Respondent Demographics

Exhibit 47: Gender

Exhibit 48: Age

Exhibit 49: Education

Our survey sample included 1,020 consumers, representative of the age and gender distributions of the Canadian population. All participants were over the age of 18 and owned at least one credit and one debit card. The following charts provide a full breakdown of the demographics of our survey respondents.

49%Male

51%Female

17%25-34

11%18-24

16%35-4418%

45-54

17%55-64

21%65 or older

0% 50%40%30%20%10%


Post-graduate degree

Some university - no degree

Graduated university

(2- or 4- year)

Graduated secondary/high school

Some secondary/high school

Primary school

2%

16%

39%

21%

19%

2%

0%


A P P E N D I X

Exhibit 52: Type of Devices Owned

Exhibit 51: Household Income

0% 80%60%20% 40%

Unemployed

Homemaker

Self-employed or small

business owner

Student

Retired

Employed fullor part time

4%

4%

5%

5%

28%

54%

0% 30%20%10%


$150,000 or more

$75,000 to less than $100,000

$100,000 to less than $150,000

$50,000 to less than $75,000

$25,000 to less than $50,000

Less than $25,000

11%

8%

16%

18%

22%

19%

7%

0% 50%40%30%20%10%

A tablet

An Android-based smartphone

A 'wearable" device

An Apple iPhone

A basic voice and text messaging

cell phone

Do not own a mobile device of

any type

Another type of smartphone

A BlackBerry smartphone

A Microsoft-based smartphone

44%

42%

41%

12%

11%

5%

3%

3%

1%

Exhibit 50: Employment Status

Note: Respondents could select all that applied.

A B O U T TSYS

TSYS® (NYSE: TSS) is a leading global payments provider, offering

seamless, secure and innovative solutions across the payments

spectrum ― for issuers, merchants and consumers. We succeed

because we put people and their needs at the heart of every

decision to help them unlock payment opportunities. It’s an

approach we call People-Centered Payments®.

Our headquarters are located in Columbus, Ga., U.S.A., with

approximately 12,000 team members and local offices across

13 countries. TSYS generated revenue of $4.9 billion in 2017,

while processing more than 27.8 billion transactions. We are

a member of The Civic 50 and were named one of the 2018

World's Most Ethical Companies by Ethisphere magazine. TSYS

is a member of the S&P 500 and routinely posts all important

information on its website. For more, visit tsys.com.

CA L L US :

Africa +27 21 5566392

Asia-Pacific +603 2173 6800

Commonwealth of Independent States +7 496 287 3800

Europe +44 (0) 1904 562000

India & Southeast Asia +911204191000

Middle East +971 (4) 391 2823

North & Central America, Mexico & the Caribbean +1.706.644.3819

South America +1.706.644.3819

©2018 Total System Services, Inc.® All rights reserved worldwide. Total System Services, Inc. and TSYS® are federally registered service marks of Total System Services, Inc. in the United States. Total System Services, Inc. and its affiliates own a number of service marks that are registered in the United States and in other countries. All other products and company names are trademarks of their respective companies. (11/2018)

To learn more: contact +1.844.663.8797 or email [email protected].

twitter.com/tsys_tss

facebook.com/tsys1

linkedin.com/company/tsys

Documents

TSYS 2018 Canadian Consumer Payment Study€¦ · 2018 CANADIAN CONSUMER PAYMENT STUDY 3 INTRODUCTION Improving customer experience starts with monitoring the fast-changing technology