Prepaid Continues To Impress Canadians, Bank Account Usage Drops
Reloadable prepaid cards are a huge hit with Canadian consumers, with 95 percent of consumers saying that they are satisfied with the products in 2016.
This number is up an incredible 22 percentage points from 2015, easily standing as the highest satisfaction rate for all payment tools, according to the second annual “How Canadians Pay Today” survey from the Canadian Prepaid Providers Organization.
The survey, which asked over 1000 Canadian consumers, states that satisfaction with single-use prepaid cards increased by 14 percent, reaching 89 percent in 2016. The survey report also said that “60 percent of consumers find it appealing to use prepaid cards to help their children manage their money [and] 47 percent of those with kids under 18 at home would consider doing this.” More consumers are seeking out American Express, Mastercard and Visa prepaid cards compared to 2015.
It’s all good news for the prepaid industry; for bankers, not so much. 33 percent of respondents said they do not want to use “traditional banks because alternative providers and new tools are cheaper and more convenient.” 66 percent of consumers are concerned about the security of their credit and debit cards when making online purchases, however only 28 percent of people had similar concerns about prepaid cards.
26 percent prefer to use such digital payment tools as Apple Pay instead of traditional banks. 59 percent of Canadian consumers have used digital payment products; of those, 70 percent cite convenience as the main reason for switching over.
“Canada has both a highly banked population and many consumers with a strong willingness to try new financial services products,” said David Eason, CPPO co-founder and chairman of the board. “This year’s survey revealed that younger Canadians in particular are adopting emerging payment tools that are more convenient and secure.”