Cash, card or mobile wallet?

This entry was posted on Tuesday, September 27th, 2016.

A new survey conducted by Moneris finds that 25% of Canadians between the ages of 18-34 prefer paying with a mobile wallet over cash or card.

“Of Canadians aged 18-34, 46% said they would be more likely to use a mobile wallet if it were available for the kind of credit card they used,” Moneris stated in a recent press release. “[Meanwhile], 47% said they would use a mobile wallet if it were available for the kind of phone they used – responses collected prior to the full rollout of Apple Pay.”


When asked their reasons for not using a mobile wallet, 62% of respondents said they would be more likely to use it if they knew it was secure. In addition, 50% confirmed they would leave their wallets at home – if they could store all loyalties on their smartphones. Additional reasons for keeping physical wallets? The inability to receive receipts via email and store personal identification.

“As more consumers realize mobile devices offer a secure alternative to physical wallets because of biometric authentication and other enhancements that minimize the risk of fraud, businesses should ramp-up plans to take advantage of mobile device usage,” the Moneris press release added. “The shift away from cash is an opportunity for businesses to offer increased value to their customers, through digital solutions and applications that offer reward programs and other loyalty options as well as omni-channel selling approaches.”

Perhaps not surprisingly, a recent Square survey of the same millennial age group (18-34) in the U.S. found that 45% of respondents have made an NFC payment. According to Business Insider, the poll is a “good indicator” of where mobile payment adoption is headed, with the publication forecasting a compound annual growth rate (CAGR) of 80% through 2020 to reach $503 billion. In addition, the integration of loyalty programs and increased reliance on mobile wallets for features such as in-app payments is expected to accelerate both adoption and use over the next few years.

In terms of allying security concerns over mobile payments, Business Insider notes that the top mobile wallets on the market are “perhaps more secure” than chip payment cards because they authenticate not only the device used for a transaction, but also the individual using the device via fingerprint recognition or other biometric methods such as iris scanning.

Moreover, tokenization protects mobile payment credentials by replacing them with a randomly generated number that resembles the customer’s primary account number (PAN). The unique identifier, known as a ‘payment token’ or ‘tokenized PAN’, is worthless if stolen, as it acts as a reference for a consumer’s original card data which only the card networks and the consumer’s bank can map back to the original account.

Interested in learning more about mobile payments? You can check out our mobile payments page here or read our ebook:

How will we pay in 2020