Canadians want more out of their credit cards

Reward programs influence purchasing decisions for nearly 60% of Canadian credit card holders; 66% feel reward programs offer value, according to new Chase Canada survey

TORONTO, Nov. 30 /CNW/ - The number on the price tag is not necessarily the only driver when it comes to purchasing decisions for Canadians. According to new research from Chase Canada, reward programs and reward credit cards have significant influence on consumer purchasing behaviour. What's really important to consumers is satisfying their quest in seeking out additional value when making purchases.  In fact, Canadians carry more loyalty cards per capita than anyone anywhere else in the world*.

According to a recent survey commissioned by Chase Canada, 89% of Canadians surveyed own at least one credit card, of which 75% have at least one card with a reward program.  The survey also reveals reward programs impact Canadian's spending habits and credit card choices.

When it comes to why consumers use credit cards, earning reward points is a big motivator cited as the primary reason by 20% of credit card holders, second only to purchasing convenience cited by 51%.  This compares to only 9% whose primary reason to make purchases using a credit card is as an easy way to borrow money.

Close to half of Canadian credit card holders (45%) select their credit cards based on the rewards program, and over half of the respondents (59%) prefer to make purchases at stores where they collect rewards points.  In addition, 44% of respondents agreed that they are more likely to make purchases when they know they are earning reward points and 66% feel reward points offer additional value when making purchases.

"Canadians look for much more from their credit cards than just a vehicle to facilitate a transaction," said Andy Pilkington, President and CEO, Chase Canada.  "The survey results show that reward programs are highly valued by consumers and have a significant influence on consumer purchasing decisions - not just for which credit card they choose, but where they shop."

In terms of frequency of using credit cards, just over half of Canadian credit card holders (52%) are using them to make purchases at least once a week.   However, when it comes to redeeming points consumers take a longer term approach, with 32% who redeem points annually and an additional 32% who redeem less often than that.

The survey also indicates that Canadians believe less is more when it comes to their credit cards, with the majority of consumers (62%) having only one or two credit cards. 

Additional highlights of the survey:

• Twenty per cent of respondents have never redeemed their rewards points
• Close to half of respondents (42%) seek out opportunities - such as online promotions or special bonus point days - to earn additional rewards points
• Respondents earning over $100,000 per year are more likely than others to say they use their credit cards every day
• Men are more likely to use their card at least once a week than are women at 60% and 45% respectively

"Providing additional value for consumers through a rewards program can create a real competitive advantage for Canadian retailers and service providers.  Through our co-branded partnerships in Canada with Sears, Best Buy, and Marriott Hotels, we have seen the positive impact reward programs can have on driving business by creating real value to consumers," concludes Pilkington.

*Source: Rewards Canada, 2010

About the Survey
From 21st September to 22nd September, 2010, Angus Reid Public Opinion conducted an online survey among a randomly selected, representative sample of 1,008 Canadian Adults who are Angus Reid Forum panel members. Individuals were sampled according to Census data to be representative of the Canadian national adult population. The full dataset has been statistically weighted according to the most current gender, age, region (and in Quebec, language) Census data to ensure a sample representative of the entire adult population of Canada. The margin of error is ±3.1%, 19 times out of 20. Discrepancies in or between totals are due to rounding.

About Chase Canada
Since 1965, JPMorgan Chase has provided Corporate and Investment Banking products and services to the Canadian market under the JPMorgan brand. In 2005, the company expanded and became the credit card issuer of the Sears MasterCard and Sears Card in Canada. Now, the company also offers the Marriott Rewards Platinum Visa Card, the Best Buy Reward Zone Visa Card, Best Buy Card and Future Shop Credit Card. JPMorgan Chase employs more than 1,600 Canadians in its Canadian offices.

For further information:

Nicole Leaver at Ketchum, on behalf of Chase Canada
416-355-7429
[email protected]