Contactless payments are on the rise – now what?

Canadians love shopping with their plastic

 TORONTO, ON, July 20, 2016 – Canadians love of plastic grew by 7.6 per cent year over year. Credit cards now account for 64.84 per cent of overall purchases according to a report by Moneris.  The findings suggest few people carry cash with them anymore. Contactless Payments

It’s like good old fashioned cash is now a distant memory for the majority of Canadian consumers. Here’s the proof: the volume of contactless payments increased by a whopping 162.56 per cent in the second quarter alone. It doesn’t stop there. Moneris reports the amount of contactless payments jumped by 95.6 per cent in comparison to the same time last year. It is evident the love Canadians have for easy payment options at the cash register is encouraging them to spend more per purchase. Moneris says Canadians are spending more per tap; on average contactless payments increased by seven dollars this year.

“Convenience is great however if you do not spend within your means, you are creating the perfect atmosphere for a debt disaster. Little purchases here and there will add up if you are not mindful of it,” says Jeffrey Schwartz, executive director, Consolidated Credit Counseling Services of Canada.

“It is so easy to spend $100 with the tap of your credit card instead of going through your wallet to find the same amount for a purchase,” says Schwartz.

With the addition of Apple Pay and its partnership with five major Canadian banks, consumers are embracing contactless payments in droves which are contributing to the rise of digital payments. This is translating into greater spending.  Moneris says consumer spending increased 5.53 per cent for Q2 year-over-year. However provinces where the economy is taking a beating, the growth of contactless payments declined. Moneris points out some key findings across Canada on spending:

  • Ontario went up by 8.35 per cent
  • Prince Edward Island increased 8.11 per cent
  • Newfoundland rose 2.3 per cent
  • Saskatchewan grew by 0.99 per cent
  • Alberta dropped by 2.9 per cent

As contactless payments continue to rise, consumers need to create an appropriate game plan to control their spending habits. To help Canadians keep their credit card debt at bay, Consolidated Credit offers the following tips to help with their debt management:

Budget your contactless payments

Hate carrying cash in your wallet? Create a budget to factor all of your contactless purchases. This way you can track what you are spending on. If the thought of using an Excel sheet for your budget scares you, download a budgeting app to help you see where your money is going. Monitor your expenses and make the necessary adjustments to manage your digital spending.

Limit your digital purchases

No one has a money tree in their backyard. It is time to get real and put a pre-determined limit on your digital purchases. Staying within this limit will help you to manage impulse-spending which could lead to a mountain of debt.

Cash rules everything around me

If all else fails, take the plastic out of your wallet and carry cash instead. Once your money is gone, so goes your shopping spree!

“Taking a mental break from using cash is all fine and good however to keep your financial house in order, you need a strong plan to keep all your spending in check,” says Schwartz.

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About Consolidated Credit Counseling Services of Canada, Inc.:

Consolidated Credit Counseling Services of Canada is a national non-profit credit counselling organization that teaches consumers about personal finance.
For more information or to request an interview with Jeffrey Schwartz, please contact:

Natasha Carr, Community and Public Relations Manager, Consolidated Credit Counseling Services of Canada, Inc., T: 416-915-7283 ext.1041, C: 416-830-4720, F: 416-915-5200, E: ncarr@consolidatedcredit.ca

Press Inquiries

pr@consolidatedcredit.ca
1-800-656-4120 x 1064