A study by Payments Canada has found that Pay by Bank “appeals” to fewer than one-third of Canadians, with its appeal increasing among newcomers to the country and gig workers.
The research, conducted among 1,500 Canadians, sought to identify their interest in new technologies, including generative AI, social commerce, passkeys and Pay by Bank.
Pay by Bank, which allows consumers to make transactions directly from their bank account to the merchant, appeals to 29% of Canadians, while 33% do not find it appealing and 38% are “neutral”, according to Payments Canada.
The study found that newcomers to Canada and gig workers are more likely to use the Open Banking-enabled payment method, at 53% and 47%, respectively.
Incentives, such as cashback offers or rewards points, would encourage adoption of Pay by Bank among Canadians, with 60% saying they would be more likely to use it if incentives were offered.
Of those surveyed, 32% identified security as the main attraction of Pay by Bank, given that it does not require consumers to enter their credit or debit card information directly on the merchant site.
Pay by Bank appeals more to younger Canadians (34%), falling to 28% of middle-aged Canadians and 22% of the older population.
Payments Canada also asked Canadians about the use of generative AI for making payments or receiving services, as well as to generate personalised discounts or pricing for consumers, and in fraud detection.
It found there are mixed views on the appeal of generative AI to enhance the online shopping experience, with 28% of those surveyed considering it appealing and 34% saying it’s unappealing to them, while 38% are on the fence.
The survey revealed, however, that fraud detection and prevention is thought to be the most beneficial way of leveraging generative AI among Canadians (45%).
“Canadians prioritize security and privacy while also expecting ease and convenience in their shopping experience, particularly in the way they pay,” said Jon Purther, director of research at Payments Canada.
“They seek innovations that strike a balance between these factors. However, Canadians are divided on the appeal of innovations that have the potential to reshape our shopping and payment experiences, with security being a key concern.”
Purther added: “In our study, we also found that many Canadians had not yet formed a view around their appeal, which infers that they are reserving judgment until they become more familiar with newer technologies.”