Canadians were in a bit of a spending mood in the third quarter of 2016. According to the Moneris, one of North America’s biggest debit/credit card payment processors, consumer spending was up 4.77% from the same time last year, and 6.88% from 2014.
The most popular items to spend our hard earned money on? Fast food (+12.2%), furniture/home furnishings (+8.2%) and sports apparel (+7.8%)
“We are closing in on eight consecutive quarters of growth across nearly all major consumer categories. Over the last few quarters, we have seen a trend toward a larger share of credit card versus debit card payments, which could be driven by a combination of factors, including the shift to online shopping, popularity of contactless payments, and Canadians’ preference for loyalty and rewards programs. As we enter the busy holiday shopping season, we will continue to keep an eye on how Canadians are choosing to pay amid all of the options available to them.” – Angela Brown, President and CEO of Moneris.
And just how are we paying for our purchases? The Moneris Metrics report indicates credit cards are the most popular, making up 65% of all transactions.
But the use of tap-and-pay and smartphones are gaining in popularity.
Contactless purchases made up roughly 33% of all transactions during the quarter, up over 13% from the same time in 2015.
“Tap-and-pay transactions have accounted for an increasingly significant portion of payments each quarter,” said Brown. “High growth in the number of contactless transactions being made and volume of dollars spent is indicative of where we are headed with the technology, as more Canadians adopt mobile wallet options such as Apple Pay.”