Interac survey reveals pandemic has also increased consumer demand for digital payment options, whether online, in-app or in-store
TORONTO – May 25, 2021 – A new survey from Interac Corp. reveals Canadians are eager to support businesses in their own backyards. Three-quarters of Canadians (75 per cent) said the pandemic has made shopping and supporting businesses in their community more important, and more than half of Canadians (55 per cent) say their desire to support local businesses is causing them to shift their spending by shopping closer to home. The shift to remote work, coupled with the desire to shop locally, may be lasting trends that will positively impact local business recovery post-pandemic.
Shopping local isn’t just lip service or a matter of convenience. Canadians are willing to take additional steps to support local. Close to half of Canadians (48 per cent) are willing to wait longer for delivery or pickup. Fifty per cent are willing to pay up to five dollars more and 31 per cent up to 10 dollars more for the same product, if needed, to support local businesses instead of purchasing from major online retailers.
“While spending is still down overall and the impact of the pandemic to small businesses is still being felt across the country, Canadians are telling us that when they do spend, they want their dollars to support small business recovery post-pandemic,” said William Keliehor, Chief Commercial Officer, Interac Corp. “We also know digital, contactless payments are an important driver of choice. Ensuring local businesses can serve customers safely with digital solutions will be an important part of the economic recovery when spending returns to pre-pandemic levels.”
Sixty-six per cent of Canadians said businesses that fail to adapt to allow digital payments will struggle. This demand is reflected in a 333 per cent year-over-year increase in Interac Debit payments made within a merchant app or website1, and a 113 per cent year-over-year increase in Interac e-Transfer transactions being received by businesses across Canada since the pandemic began2. The increase in business-related transactions contributed to the overall growth of the platform, where over 832.7 million Interac e-Transfer transactions were sent since the beginning of April 2020, a 52 per cent year-over-year increase3.
“Our transaction volumes show just how many businesses are already turning to digital payments to help their consumers transact in the new normal, which is a promising trend that will contribute to recovery when Canadians return to pre-pandemic shopping frequencies across all major types of business,” Keliehor continued. “The stickiness of digital payment solutions will have a long-term impact on Canada’s retail industry. Businesses who prioritize integrated payment options across the consumer’s shopping journey, whether online, in-app or in-store, will be better positioned in the future.”
When shopping local, Canadians are still looking for choice in payments. Seventy-two per cent of Canadians believe they should have the option to pay with debit when checking out online, making a purchase in-app or paying in-store or curbside (a five per cent increase since we conducted this study in August 2020). Nearly 70 per cent believe businesses that offer debit in-store should also accept debit for online payments.
Other key findings from the survey include:
- Local during lockdown – Even during periods when stay-at-home orders were in effect, 64 per cent of Canadians looked to support their local businesses
- Bricks and mortar remain important – 66 per cent of Canadians said they are willing to visit a store (curbside or instore) to buy from local businesses instead of purchasing online
- Digital payments – 52 per cent of Canadians say they are just as comfortable paying a small business by Interac e-Transfer as by other payment methods
- Businesses offer new solutions – Alberta businesses have seen a 228 per cent year-over-year increase in volume of received Interac e-Transfer transactions
- Pandemic impact – 90 per cent of Ontarians think local businesses in their province have been particularly impacted by the pandemic
- Loyal to local – Quebecers are the most loyal with 61 per cent saying they shop local because they want to support small businesses
- Communities matter – 78 per cent of British Columbians believe local businesses are more important to communities than major online retailers
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About the Interac survey
Interac Corp. commissioned Hill+Knowlton Strategies to conduct a national survey of adult Canadians. A total of 1,000 adult residents of Canada were surveyed online in April 2021. The sample was randomly drawn from a panel of potential survey respondents. An associated margin of error for a probability-based sample of this size would be ±2.5%, 19 times out of 20.
About Interac
Interac Corp. empowers Canadians to transact digitally with confidence by providing payment and value exchange services rooted in security, reliability, and efficiency. As a leader in digital security and authentication alongside our subsidiary, 2Keys Corporation, security is the core of everything we do. Through our world-class privacy, fraud mitigation and governance expertise, we help keep Canadian customers safe and secure when transacting with Interac. With nearly 300 financial institutions connected to our network, Canadians choose Interac products an average of 18 million times a day to pay and exchange money. Interac is committed to championing workplace culture and corporate citizenship based on the principles of responsibility, diversity and inclusion. We are proud to be one of Canada’s leading and most trusted financial brands. For more information, visit our Newsroom.
For further information
Media Contact: Interac Corp., 416-869-2017, media@interac.ca
Interac and Interac e-Transfer are registered trade-marks of Interac Corp.
[1]Interac Debit e-Commerce payments March 2020 vs. March 2021
[2]Interac e-Transfer transactions 04/01/2019 – 03/31/2020 vs. 04/01/2020 – 03/31/2021
[3]Interac e-Transfer transactions 04/01/2019 – 03/31/2020 vs. 04/01/2020 – 03/31/2021
