June 28, 2011

PayPal study reveals most Canadians are comfortable with a cashless future

TORONTO -- New market research conducted on behalf of PayPal Canada by Leger Marketing shows that 56 percent of Canadians are comfortable with never having to handle cash to make a purchase and many would prefer the use of a digital wallet to give money to others or pay for items when shopping. PayPal accounts have always provided digital wallet functionality. PayPal is Canada's most trusted digital wallet and provides its more than four million Canadian customers the ability to pay and get paid using their bank account, credit cards or PayPal balance from their computer, smartphone or virtually any Internet-connected device.

Given the choice, 34 percent of survey respondents would rather carry a mobile phone to make a payment than a pocket full of change. The survey also indicates that 36 percent of Canadians would make mobile payments for a wide variety of purchases, on average, saying they would use their mobile device to buy something as expensive as an iPod ( $272.30) or as inexpensive as a latte ( $5.50). As consumers continue to transition to smartphones and get more comfortable shopping and paying with their mobile phone, PayPal, which reported  $750 milliom in mobile payment volume in 2010 anticipates the company's mobile payment volume should increase by the end of 2011 to   $3 billion  globally. In   Canada, a PayPal mobile transaction happens once almost every minute.

Canadians are also looking for an easier and faster way to give money to others. Almost 40 per cent of survey respondents say using a mobile phone to make a payment would be more convenient because they can make transactions whenever and wherever they want and 60 per cent of respondents would find it appealing to not have to find a bank machine every time they need to pay someone back.

"A Canadian uses PayPal as their digital wallet once every second because they want greater flexibility, security and convenience in how they pay and get paid," said Darrell MacMullin, managing director, PayPal   Canada. "From avoiding the search for ATMs, to finding easier ways to split restaurant bills with friends or making payments anytime, anywhere and from virtually any device, Canadians want easier, faster and safer ways to shop, share expenses, send money or get paid back."

PayPal expects the number of mobile transactions to increase significantly with greater smartphone usage by Canadians. According to a Canadian Wireless Telecommunications Association report in   May 2011, 33 per cent of Canada's 25 million mobile users have smartphones. Another driver of mobile transactions in   Canada  will be increased consumer trust in the security of their financial data when they use a smartphone or computer to pay or get paid. PayPal's system was built with privacy and security at its core. This means with PayPal confidential information is never stored on a phone or other device, shared with the people or merchants money is sent to, or transmitted over a cellular or data network. According to GfK's global report on mobile payments issued in   May 2011, PayPal is viewed as the most trusted brand in mobile payments around the globe.

 

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