Consumers increasingly frustrated by limitations of cash
TORONTO, May 23, 2013 /CNW/ - PayPal today revealed the findings of a
global study that paints a dim future for the wallet, especially in the
Canadian market. Almost nine in ten (87%) Canadians indicated they
wished they did not have to carry a wallet followed by a vast majority
(83%) of respondents across five countries (Australia, Canada, Germany,
the U.S. and the U.K.) wishing they were wallet-free.
Nearly one in four Canadians (23%) and almost half of Canadians (47.9%)
between the ages of 18 and 24 would choose a smartphone over a wallet
if they could only bring one item when going out. Those in Ontario
(28%) and the Prairies (23%) were most likely to choose their
smartphone over their wallet.
While Canadian consumers are keen to move to a digital payment future,
the businesses that serve them may be lagging behind. Three quarters of
Canadians (75%) reported they have been unable to pay for something
because they didn't have cash with them. In fact, for more than one
third of Canadians (36%) and nearly half (47%) of younger Canadians
(between the ages of 18 and 24), this has happened frequently.
Leave Home Without It
The survey, conducted in Australia, Canada, Germany, the U.S. and the UK
found striking similarities in consumer frustration across the globe.
In each country, strong majorities of consumers reported they wished
they could leave their wallet at home. Specific data points include:
Canadians are in good company: 87 per cent wish they could leave a
wallet at home; Germans, Americans, Australians and Brits agreed
overwhelmingly (90%, 86%, 80% and 76% respectively) that they'd like to
leave a wallet at home;
Canadians are most likely to find themselves unable to make a purchase
because they don't have cash with them (75%); Germans are the least
The UK may be leading the charge towards a wallet-less future - 32 per
cent reported they would choose a smartphone over a wallet when going
out if they could only bring one item.
This Summer's Least-Wanted Accessory: The Wallet
With summer approaching, Canadians are planning for days at the beach,
but the study indicates taking a wallet isn't in their plans.
The beach (70%) topped the survey as the place most Canadians wished
they could go without a wallet, followed closely by the gym and while
Canadians were also the most likely to wish they didn't need their
wallet at a bar, while Germans and Americans were most likely to wish
they could attend concerts or sporting events wallet-free;
Canadians listed the Laundromat, grocery store and restaurants as places
they wished they didn't need to take their wallet with them.
Canucks Stuck with the Bill
The payment frustrations of Canadians aren't limited to wallets. 54 per
cent of Canadians reported that they have been "stiffed" by someone,
either intentionally or unintentionally. Victims report this happening
most often for a meal (30%) or an alcoholic beverage (21%). Canadian
men were most likely to be stuck with the tab at the bar, with nearly
one-in-four (24%) saying they've been stiffed for alcoholic beverages,
as compared to 17% of Canadian women.
Younger Canadians (between the ages of 18 and 24) find they're stuck
footing the bill for their friends, with more than half (57%) left
picking up meals, more than one-third (36%) coughing up money for
coffee, and more than one-in-four paying for cab rides (31%) and
alcoholic beverages (28%).
Both online and through its mobile app, PayPal enables person to person
transfers that allow Canadians to request that money immediately,
helping to reduce the chance they wouldn't get paid (and the likelihood
to awkwardly hassle a friend for payment).
While each country reported being most often stiffed on a meal, friends
purchasing coffee and alcoholic beverages were also likely to not be
Australians are most likely to get stiffed - nearly 6 in 10 (57%) report
being stiffed; Brits are least likely to get stiffed - but most likely
to be stiffed for a pint;
In Germany and Australia, men are significantly more likely than women
to report that they've been stiffed (German: 57% men vs. 51% women;
Australia: 60% men vs. 54% women).
Spare Change Gathering Dust
The wallet's demise may be preceded only by the extinction of the penny.
Earlier this year, Canada ceased distribution of its penny, joining
Australia, New Zealand and other countries that have dropped 1-cent
coins because of rising metal costs and a diminishing need.
In fact, Canadians say their spare change usually isn't used. More than
half (53%) report they usually put their spare change in a jar and
nearly one in ten (9%) just give it to their kids.
Around the globe:
Americans and Brits are most likely to lose their spare change; Germans
are least likely to lose change;
Germans are most likely to carry change with them - nearly three times
more likely than Americans and nearly twice as likely as Brits.
Solving Payment Pain Points
"It's not about replacing cash or your credit card with a new payment
method, it's about using technology to solve real shopping pain
points," said Darrell MacMullin, Managing Director, PayPal Canada.
"We've listened to the pain points of Canadians and are focused on
delivering solutions that make every day spend easier - and help
Canadian shoppers be more efficient and wallet-free."
About the Survey
The PayPal Survey was conducted by Wakefield Research (www.wakefieldresearch.com) among 1,000 credit and debit card holders, ages 18 and older, in each
of the following countries: U.S., U.K., Canada, Germany, and Australia
between April 26th and May 13th, 2013, using an email invitation and an
Results of any sample are subject to sampling variation. The magnitude
of the variation is measurable and is affected by the number of
interviews and the level of the percentages expressing the results. For
the interviews conducted in this particular study, the chances are 95
in 100 that a survey result does not vary, plus or minus, by more than
3.1 percentage points, in all of the countries, from the result that
would be obtained if interviews had been conducted with all persons in
the universe represented by the sample.
PayPal is the faster, safer way to pay and get paid online, via a mobile
device and in store. The service gives people simpler ways to send
money without sharing financial information, and with the flexibility
to pay using their account balances, bank accounts or credit cards.
With 128 million active accounts in 193 markets and 25 currencies
around the world, PayPal enables global commerce, processing more than
7.6 million payments every day. Because PayPal helps people transact
anytime, anywhere and in any way, the company is a driving force behind
the growth of mobile commerce and expects to process $20 billion in
mobile payments in 2013. PayPal is an eBay (Nasdaq: EBAY) company and
contributed 40 per cent of eBay Inc.'s revenues in 2012. PayPal is
headquartered in San Jose, Calif. and its international headquarters is
located in Singapore. More information about the company can be found
Image with caption: "Infographic: global survey released by PayPal reveals that Canadians are ready to ditch their wallets. (CNW Group/PayPal)". Image available at: http://photos.newswire.ca/images/download/20130523_C9428_PHOTO_EN_26995.jpg
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