It appears Canadians were in a spending mood during the second quarter of this year.
The latest figures from Moneris, which is one of North America’s biggest debit and credit card processors, indicate consumer spending grew by 5.53% on a year-over-year basis.
Here in Ontario, spending rose by 8.35% which was the highest increase in the country.
Credit cards continue to be a popular form of payment, accounting for about 65% of purchases. That’s a 7.6% increase from last year at the same time.
Debit sales also increased, by nearly 2%, which made up 35% of spending.
As well, more Canadians are embracing “contactless payments” technology or paying for purchases by tapping their debit or credit cards.
In the second quarter, the number of tap transactions increased by 95.6% compared to the same time last year. And Canadians also spent more per tap transaction. On average, that worked out to be about $7.
“We continue to see consistent, healthy growth, but it is important to continue monitoring contributing factors like consumer confidence, the fluctuating dollar, real estate and foreign markets to get a sense of broader economic trends. We do expect to see spending up in the third quarter as we move into the busy summer tourism season. Additionally, the bars and restaurants category will continue to see growth from special events like the Euro Cup and the Olympic Games.” – Angela Brown, President and CEO of Moneris
Also of note, charitable giving also increased in the second quarter. Canadians donated 21.08% more, with the biggest increase in May as Alberta dealt with a massive wildfire.