One of the best attended sessions at SPARK Canada was about Credit Card trends. During the session we discovered interesting facts and insights we didn't know before.
- Did you know that less than 50% of Canadians use more than one credit card monthly?
90% of monthly spend activity demonstrates that Canadians prefer using their primary card of choice.
Canadians are hyper loyal to their primary credit card. Unlike consumers in other geographies, they do not alternate between card products which may be driven by hopes of maximizing their rewards.
- Interesting fact: Credit limit assignments dictate new credit card engagement
Analysis shows that new credit limits influence cardholders’ engagement as well as their average monthly spend.
Average monthly credit card spend tends to be higher if the new credit limit exceeds the limits on existing products in a customer’s wallet and vice versa.
Surprisingly, credit card limits can also trigger unexpected emotional responses from consumers, for example, an individual could become offended if they are assigned a limit lower than what is expected.
- Did you know that everyday rewards gained popularity among Canadian cardholders compared to travel or cash back rewards?
In 2018, we saw significant uptake in new credit cards that carry ‘Everyday’ rewards. Travel and cash back incentives trialed behind.
The success of everyday rewards programs was fueled by loyalty points and initiatives from our favourite grocer and hardware stores. It’s also important to note that the slowdown in the Canadian economy has impacted consumer rewards of choice. Incentives that allow greater incremental savings in day-to-day purchases tend to win out.
It doesn’t stop at these 3 compelling highlights. The SPARK Canada sessions were chock-full of great observations. Learn more here.
Data used in this post is based on Equifax Information.
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