TORONTO, April 28, 2022 /CNW/ – While debit usage in Canada clocks in at an impressive 29% of purchases, nearly 90% of Canadians aren’t using a debit card that rewards them for these purchases. According to a new survey from PC Financial* as many as 7 in 10 Canadians are not aware there are accounts, like the PC Money Account, that will reward customers for spending their own money. Meanwhile, a whopping 7 in 10 Canadians (73%) believe people using non-rewards debit cards are missing out on significant returns.
“With the cost of many items on the rise, people are increasingly looking for ways to make their money go further,” says Barry Columb, President, PC Financial. “Canadians are telling us that they want the option to pay with their own money but aren’t feeling rewarded by debit. That’s exactly why we launched the PC Money Account which is a better alternative to debit, since it gives customers PC Optimum points that can help cover essentials like groceries, gas, cosmetics, and clothes.”
The Psychology Behind Spending with Debit
- The study investigated the reasons why Canadian shoppers prefer to use specific payment methods.
- The top reason people prefer to use their debit card over other forms of payment is to have control over their spending (33%).
“Having deliberate control over spending is one of the pillars of financial well-being,” says Dr. Moira Somers, a Winnipeg-based clinical neuropsychologist who focuses on financial psychology. “But spending can be influenced by hidden factors outside of our awareness, and this often results in overspending. One painless way to maintain control is to use your own money in the form of cash or an everyday spending account, just like the PC Money Account. It causes the brain to pause and give purchases a second thought.”
Rewards Points are Motivating the Way People Pay
- Rewards are a major motivator for why Canadian shoppers choose a payment method.
- 56 per cent of Canadians said earning rewards from their payment card influences their decision to use the card.
- 3 out of 4 Canadians said they use a credit card with a rewards offering, but only 1 in 10 Canadians use a debit card with a rewards offering.
“I love the PC Money Account because it offers the best of all worlds. It not only provides the safety and convenience of having a bank account versus carrying cash, but it also rewards users with PC Optimum points everywhere they shop. The PC Money Account is a great option for people who want to make their money work harder and earn rewards faster,” Dr. Somers said.
Further key findings from the survey:
- Canadians could be savvier with their debit rewards points: Only half the users of debit rewards cards feel they are using their rewards well.
- Canadians see potential for rewards to support with budgeting: 2 in 5 Canadians say a debit rewards card could help them with budgeting.
- Rewards debit cards are still being utilized: 78 per cent of people who use rewards debit cards use them weekly.
SOURCE Loblaw Companies Limited