Canadians Choosing Chip-and-Pin and Contactless Over other Payment MethodsPosted April 22, 2018 in News
You’ve probably heard of the saying, “cash is king.” Well, when it comes to choosing a payment method, security and convenience are king. A new Visa survey found that these are the two most important factors for Canadians when it comes to choosing a payment method.
The survey found that 71 percent of respondents regularly use chip-and-pin credit cards as they’re perceived to be very convenient (82 percent) and very secure (74 percent). But not far behind and gaining ground are contactless credit cards. 52 percent said that they regularly use them to pay. Meanwhile, eight in 10 Canadians say they’re very convenient to pay, while 45 percent see them as very secure.
“When making purchases, consumers most often reach for the familiar,” said Gord Jamieson, Head of Risk, Visa Canada. “Canadians gravitate towards chip-and-pin and contactless cards not only because these methods of payment enable a fast and convenient checkout experience but they are also some of the most secure ways to pay at point-of-sale.”
A Strong Relationship Between Usage and Perceptions of Security
The survey also found that there is a strong relationship between usage of a payment method and the perception of security. Credit cards aren’t the only payment method, but the fact that they’re secure means they’re top of mind when it comes to making a purchase online or in a retail setting.
So, what about some of the emerging payment methods like Bitcoin? You may be able to buy the condo of your dreams online with your credit card, but you can also buy homes with Bitcoin, too (although the adoption rate has been a lot slower).
So, what’s holding back cryptocurrencies from overtaking credit cards as the preferred payment method? Again, it all comes down to security and convenience. While digital currency and other payment methods may be more convenient, the security level isn’t there – yet.
The survey found that only 35 percent consider digital wallets very secure, followed by mobile apps (34 percent), peer-to-peer websites (27 percent) and wearables-based pay (26 percent). Although growing in popularity, only a small minority regularly use them: mobile apps (nine percent), digital wallets (six percent), peer-to-peer apps (four percent) and wearables-based pay (three percent).
Another factor that the survey doesn’t mention is the availability of a certain payment method. Unless you live in a big city in Canada like Toronto or Vancouver, it’s hard to find a retailer that accepts non-traditional payment methods, but that’s quickly changing. With retailers like Dollarama offering Apple Pay, consumers will soon be able to vote with their wallet on the payment method that they prefer.
The Bottom Line
The survey’s findings doesn’t mean that credit card companies can rest of their laurels. In an era where massive data breaches are commonplace, to maintain their marketplace it will be important for credit card companies to step up their game when it comes to security. If Mastercard or Visa were to ever suffer a data breach similar to Equifax or Facebook in scale, Canadians may start considering other payment methods as their go-to payment method.