Overall credit and debit spending moderately grew at 2.5%

Toronto, ON – April 16, 2019 – For the first time, contactless accounted for the majority of card present transactions in Canada according to the MonerisMetrics Quarterly Report released by Moneris Solutions Corporation (“Moneris”).The first quarter of 2019 saw contactless growing nearly 25 per cent year over year to account for 51.5 per cent of total transactions. Overall credit and debit card spending saw moderate growth of 2.5 per cent.

 

For the first time since MonerisMetrics began reporting on spending trends in 2012, contactless (tap) accounted for 51.5 per cent of all card present transactions, a 24.7 per cent increase year-over-year. Eight provinces lead the charge in this trend: Prince Edward Island (59.2 per cent), Manitoba (58.2 per cent), Nova Scotia (55.2 per cent), Ontario (54.0 per cent), British Columbia (53.5 per cent), Alberta (52.1 per cent), Saskatchewan (51.6 per cent) and New Brunswick (51.0 per cent).

 

“Consumers want to get through a queue quickly, so a fast, simple payment experience is what they’re looking for,” said Angela Brown, President and CEO of Moneris. “It’s never been easier for businesses to start accepting payments via tap. With more banks supporting digital wallets and more devices supporting tap to pay, it’s not a surprise that we are seeing contactless transactions surge. Whether it’s tap-enabled cards, mobile devices or wearables, Canadians have clearly embraced the tap and go experience.”

 

Across Canada, Alberta (+0.7 per cent), Saskatchewan (+0.6 per cent) and Newfoundland (-2.9 per cent) saw the lowest growth rates in the country. Despite a slow growth rate, Saskatchewan did see a positive increase when compared to the -0.9 percent growth rate from Q1 2018. Saskatchewan and Manitoba (+2.2 per cent) were the only provinces to see positive year-over-year growth when compared to their growth rates from last year. British Columbia (+3.3 per cent), Quebec (+3 per cent), Ontario (+2.9 per cent), New Brunswick (+2.8 per cent) and Nova Scotia (+2.3 per cent) all saw growth rates lower than 2018. 

“While overall growth remains positive, we’ve definitely seen consumer spending slow in early 2019,” said Brown. “This change is consistent with the trending we saw in 2018. However, consumers also appear to be investing in experiences instead of goods in early 2019.”

One of the key highlights in the first quarter spend has Canadians investing in theatrical productions (+34.1 per cent) and planning their outdoor activities by booking camp sites and trailer park (+22.6 per cent) spots for 2019.

 

Canadians who didn’t want a shoveling experience invested more in landscaping services (+11.4 per cent) in the winter months as many provinces and cities saw significant snowfall. Another common and expected trend in Q1 was an increase in business for accountants and auditors (+11 per cent) and tax preparation services (+9.3 per cent) as the tax season began.

 

 

 

Foreign card spend slows

While the top three countries for foreign spend didn’t change in Q1 the growth rate dropped significantly. Cards from the United States continued to lead in overall spend with China and the United Kingdom rounding out the top three. The growth rates however, were down significantly when compared to 2018:

 

 

Note to editors

 

Please see infographic for highlights, including top categories and spending by province.

 

About MonerisMetrics

 

MonerisMetrics is an insightful Canadian spending indicator powered by Moneris. It provides information on spending activity in Canada across a range of categories by analyzing credit and debit card transaction data. The percentages cited are derived from actual sales volumes — the dollar values of credit and debit card transactions being processed by Moneris merchants — compared with sales volumes from the prior year.

 

About Moneris

 

Moneris is Canada’s largest provider of innovative solutions for mobile, online and in-store payments, processing more than one in three transactions. Serving businesses of every size and industry, Moneris offers hardware, software and solutions to help transform the way businesses grow and operate, in payments and beyond. 

 

For more information, please visit www.moneris.comand follow @moneris.

 

Media contacts

 

Darren Leroux
Moneris Solutions
416-734-1442
[email protected]