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Examining The Love Affair Canadians Have With Credit Cards

What is your preferred method of payment? When this question is asked of Canadians, most respond by saying “credit cards”. As reported by Sandra MacGregor on GreedyRates.ca, “a total of 96.8 million Visa and MasterCard cards are in circulation in Canada. That’s more than 2.5 credit cards for every citizen!”

Credit cards offer Canadians very convenient ways of paying for purchases. This has become more evident than ever in the wake of the pandemic. Firstly, the raising of the tap payment maximum from $100 to $250 last year has made it much quicker – and safer – for consumers to pay for their purchases. Secondly, the pandemic has made online shopping a practical must. And online shopping makes credit card use a practical must.

Canadians love getting rewards along with their purchases.

MacGregor highlights the fact that one of the top reasons Canadians love to use credit cards is the ability to earn rewards. Unlike with cash or with debit, a credit card purchase gives a customer more than just what he/she purchased. Depending on the card, the accumulated points can often go towards travel benefits, groceries or even cash back.

“Nearly three-quarters of Canadians (72%) carry at least one credit card that has a rewards program,” reveals MacGregor, “In fact, 82% of Canadians surveyed, rewards are a priority when selecting a credit card. If you haven’t already, it’s never too late to learn how to take advantage of credit card rewards.”

Canadians are pretty good at paying their bills on time.

Naturally, a smart credit card user is one who makes his/her payments on time. MacGregor notes that the majority of Canadians – 70 percent, in fact – don’t just keep their payments up to date, they pay their balances off in full each month. “Paying off your full balance every month is the most important rule of owning a credit card, so hopefully, we’ll see this number increase next year!” she writes.

MacGregor also points out that the average charge on a credit card in Canada is $94.76. As well, “the average credit score in Canada (a major factor in determining your eligibility for a credit card, along with income) is 650.”

COVID-19 has impacted credit card popularity.

Not only has the pandemic increased the use of credit cards in Canada, it has changed the ways in which Canadians think about their credit cards. Sadly, COVID-19 has severely impacted businesses of all kinds. As a result, many people have had their incomes lowered. This has made it so that more Canadians are looking towards using credit cards with low fees and easy approval rates.

“There’s an increased demand for credit cards that offer easier approval ‒ and a slight increase in interest for credit cards with low fees,” affirms CreditCardGenius.ca, “With massive layoffs and Canada’s economy in severe recession, these shifts come as no surprise…We did expect to see a much steeper increase in demand for cards with easy approval. Given the huge profit declines reported by the banks, their response was to tighten approvals for new credit.”

Do you accept credit cards in your store?

At Unity Payments, we believe that the easiest and most convenient way for merchants to accept credit and debit cards is with the Poynt Smart Terminal. To learn more, please don’t hesitate to call us at 1-800-661-3761. You may also email us at info@unitypayments.ca.

Author

Dan Faraldo