The Rising Popularity Of Credit Cards In Canada

In our last blog, we tackled the question “How close is Canada to becoming a cashless society?” As we discussed and as is likely no secret to you, the vast majority of Canadians prefer to pay for their purchases with credit and debit cards. And who can blame them? Using plastic is so convenient. This is especially true when you’re paying for large transactions.

Naturally, it’s a lot easier to swipe a card than it is to sift through countless paper bills in order to pay for an expensive item. That new couch for the living room, the brand new 55” TV or those necessary repairs for the car – these are all expenses that credit cards make so easy to pay for. The reason is simple. It just quicker and more convenient to make a tap payment with a card than it is to pay with cash.

Studies are proving Canada’s love for credit cards.

Loans Canada reveals that although cash is still very much in use, credit card use has increased dramatically over the past couple of decades. In fact, they report that between 2000 and 2018, the number of credit cards in circulation in Canada nearly doubled from 40 million to 76 million. Loans Canada also points out that the growth in online shopping’s popularity has made credit card use a practical must.

“According to the 2018 Canadian Payment Methods and Trends report, Canadians are opting for faster and more convenient methods of payment such as electronic and contactless payments,” says the Loans Canada website, “Online bill payments, online shopping and app purchases, are also key drivers in the growth of credit card usage.”

Rewards and other perks make credit card usage more enticing.

We all know that there are countless credit card types on the market. Many of them offer special bonuses just for using them. Cardholders can get cash back for their purchases and/or rewards points for their spending. They can also enjoy holding off on making payments through balance transfer options at 0% interest.

“As technology continues to evolve, so will more convenient methods of payments, which inevitably will have consumers shifting toward it,” reports Loans Canada, “Based on recent trends we can assume that the cash usage volume will continue to fall as more electronic methods of payment continue to grow. Moreover, loyalty programs have also incentivized Canadians to continue using their credit cards.”

No matter your interests, there is a credit card for you. As 2020 drew to a close, MoneySense.ca published their choices for “Canada’s best credit cards 2021”. You may wish to check them out to find the right credit card for you!

Do you accept credit cards in your store?

At Unity Payments, we believe that the Poynt Smart Terminal is the best POS terminal available on the market. It is a fast, powerful and secure all-in-one wireless payment solution that boasts a sleek and modern design. Poynt is perfect for table-side, in-aisle or on-the-go payments. Learn more about the Poynt Smart Terminal and how it can help your business by calling Unity Payments at 1-800-661-3761 or emailing us at info@unitypayments.ca.