A new study from Payments Canada reveals that Canadians have mixed opinions on evolving technologies that could significantly change the way we shop and pay. The study highlights growing concerns around security, unfamiliarity with new systems, and satisfaction with existing technologies, all of which are impacting the adoption of innovations like generative artificial intelligence (GenAI), social commerce, and pay-by-bank.
“Canadians prioritize security and privacy while also expecting ease and convenience in their shopping experience, particularly in the way they pay,” said Jon Purther, Director of Research at Payments Canada.
“They seek innovations that strike a balance between these factors. However, Canadians are divided on the appeal of innovations that have the potential to reshape our shopping and payment experiences, with security being a key concern.
“In our study, we also found that many Canadians had not yet formed a view around their appeal, which infers that they are reserving judgment until they become more familiar with newer technologies.”
Key Findings of the Study:
Generative Artificial Intelligence (GenAI) Divides Opinions GenAI, which has the potential to transform the payment and shopping experience by offering personalized discounts, virtual shopping assistants, fraud detection, and more, has garnered divided opinions. Among Canadians, 43% are interested in using GenAI, 44% are not, and 13% remain unsure.
- Younger Canadians (18-34 years old) are more enthusiastic, with 56% expressing interest compared to 48% of those aged 35-54, and just 31% of older Canadians (55+).
- Fraud detection and prevention is seen as the most beneficial aspect of GenAI, with 45% of Canadians agreeing it can enhance security.
- However, views on GenAI’s role in online shopping experiences are mixed, with 28% finding it appealing, 34% unappealing, and 38% neutral.
Social Commerce: Convenience vs. Security Concerns Social commerce, which allows consumers to make purchases directly through social media platforms like Instagram, WhatsApp, and TikTok, is gaining traction, though security concerns remain a significant deterrent. Approximately 12% of Canadians have sent or received money through these platforms, and 13% have made a purchase.
- Overall, 18% find social commerce appealing, while 46% view it unfavorably, and 36% are neutral.
- Among those who like social commerce, convenience and ease of use are the primary draw (40%), while concerns about security top the list of deterrents for those who are not interested (48%).
Pay-by-Bank: A Growing Trend The study also explores the growing interest in pay-by-bank, which allows consumers to make payments directly from their bank accounts without using traditional payment methods like credit or debit cards. This method is appealing to 29% of Canadians, with security being the main appeal.
- Newcomers to Canada (53%) and gig workers (47%) are significantly more likely to use pay-by-bank.
- For 32% of Canadians, security is the key benefit of this payment method, as it avoids the need to enter card details directly on merchant websites.
- Incentives like cashback or rewards points could encourage 60% of Canadians to adopt pay-by-bank.
Passkeys: A Secure Alternative to Passwords The study also found that half of Canadians (50%) find passkeys—a more secure alternative to traditional passwords—appealing for user authentication, particularly when linked to online payments.
- Overall, 47% of Canadians say they are likely to use passkeys for logging into online accounts or making purchases if available.
- However, 23% find passkeys unappealing, citing security concerns, lack of interest, or perceived complexity.
About Payments Canada Payments Canada is a public purpose organization that manages Canada’s payment systems, including Lynx, the Automated Clearing Settlement System (ACSS), and the forthcoming Real-Time Rail (RTR). These systems cleared and settled $107 trillion in 2024, supporting essential transactions like debit card payments, wire transfers, and bill payments that keep Canada’s economy moving forward.
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