The payment preferences Gen Zers are developing will inform their choices and providers for decades to come.
With stores closed and businesses locked down, Canadians turned to online channels and e-commerce for their purchases – and their favorite method of payment for these digital transactions was the credit card, which helped support both transaction volume and value.
About six in ten consumer payments are now made with debit, credit, or prepaid cards. Debit cards are used the most, followed by credit cards then by cash.
Currently, as reported in our report Private Label Credit Cards, 55% of adults have private-label (store-only) credit cards, with 44% (or 80% of overall consumer credit cardholders) having used them in the last 30 days.
In contrast to debit card or credit card use, overall rates for buying gift cards has notched downward in recent years, while rates for using prepaid cards other than gift have remained fairly stable.
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Private label cards are helping customers make large purchases that they otherwise might not be able to pay for all at once, such as appliances, home entertainment systems, or Christmas gifts for a household.
Airlines remain a co-branded credit card lynchpin, contributing $379 billion to some $990 billion in total 2018 U.S. co-branded card purchase value.
Packaged Facts estimates that co-branded credit cards generated $990 billion in purchase value last year. Travel and entertainment brands commanded 55% of spending, 70% of which was attributable to airline-branded credit cards.
Retailers and their private label credit card partners continue to refine their retailer-specific mobile apps, which provide a very important customer loyalty and engagement nexus that increasingly includes payment and loan options.