Press Releases
How will Interac® products factor in to holiday spending?
INTERAC spend data for 2009 and 2010 sheds light on possible spending activity for 2011December 7, 2011 (Toronto, ON) – Interac Association and Acxsys Corporation (Acxsys) released data today that reveals insights into the shopping behaviours of Canadians around the festive holiday season. The statistics detail spending habits of shoppers who used Interac Debit, Interac Online, Interac e-Transfer™ and Cross Border Debit in December 2009 and 2010 as possible predictors for spending behaviour in December 2011.
Highlights from the data demonstrate growth in Canadians' use of Interac and Acxsys products:
- 25.4 per cent higher dollar volume of Interac Debit transactions in December 2010 over the monthly average for 2010.
- 13 per cent increase in the number of Interac Debit transactions on the busiest shopping day of the month (December 23).
- 43 per cent more Interac e-Transfers sent in December 2010 than in December 2009.
- 66 per cent more Interac Online Payment transactions in December 2010 over December 2009.
- New York State bumps Florida as the top December shopping destination for cross border shoppers.
"Canadians are busy people who value convenience and reliability when the season arrives for everything from stocking up on entertaining necessities to crossing those special gift items off their lists," said Caroline Hubberstey, Director, Public and Government Affairs, Interac Association and Acxsys Corporation. "Our data consistently shows a strong reliance of Canadians on Interac Debit and other products like Interac e-Transfer and Interac Online to manage their spending during what is often a hectic time of year."
Interac Debit continues to hold a top-of-wallet position
Canadians are consistently reaching for their Interac Debit card during the merriest of months. The dollar volume of approved point of sale transactions in December 2010 was 25.4 per cent higher than the monthly average for the entire year.
"Eat, drink and be merry" rings true for Canadian shoppers using their Interac Debit cards, with food and alcohol among their highest volume of purchases for the month. Supermarkets and stores selling alcohol remain in the top merchant categories for total volume in December 2010, consistent with the year prior.
Canadians also continue to be at their shopping best while under pressure. December 23rd was once again the biggest day for last minute purchases in 2010. It held the title for the month's greatest amount of spend for in-store Interac Debit purchases, up 14.5 per cent from the same day in 2009. Not surprisingly, the 23rd also marked the busiest shopping day with the highest number of in-store Interac Debit transactions (18.2 million last year, compared to 16.1 million in 2009).
Reducing those holiday-spend headaches
With more than 450,000 merchant locations across Canada, it's easy to see why shoppers choose to pay for their holiday purchases using Interac Debit. Interac Debit provides instant access to your money as
you cross those items off your gift and entertaining lists, without having to worry about carrying cash or getting a credit card bill later.
Paying with your money alleviates the stress of receiving a bill in the new year and allows you to stay within your budget. Setting a budget and sticking to it helps ease the stress of over-spending at this time of year, and 81% of Canadians have said that saving is a very important priority for them*. Moreover, online banking allows cardholders to instantly track their purchases and remain within their budget - good news for those of us who want to start the new year without spending beyond our means.
The gift card of the information age
Data shows us that the number of Interac e-Transfers sent between Canadians continues to grow year after year, and it couldn't be more convenient for the gift giving season. In December 2010, Canadians
sent over 1.5 million Interac e-Transfers to transfer funds directly from one person's bank account to another. That translates to an increase of 43 per cent in transactions and a 50 per cent increase in dollar value over the 2009 holiday season.
This quick and simple service takes the hassle straight out of those holiday situations we're all familiar with, like splitting on that perfect gift for your parents, or paying your portion of the annual Christmas dinner bill with friends. Consumers can also use the online Interac e-Transfer e-vite tool to organize friends and family and manage these situations in minutes.
'Tis the season to be merry (and snag a deal)
Canadians are staying warm and shopping from home more than ever, spending a significant 85 per cent more (dollar volume) in December 2010 on purchases using Interac Online than they did in December
2009. Interac Online is accepted by many top retailers across the country, making it a leading online debit payment service.
Canadians are clearly time savvy online shoppers as well, with December 15th ranking as the month's greatest amount of online spending with the number of transactions up 108% per cent from 2009, in just enough time for those gifts to be delivered for the big day.
Without missing a budget beat, we also shop online the most during the week between Christmas and New Year's Eve, when all of the end-of-year sales start to appear. Between December 26th and 31st, 2010, Canadians made 45% more transactions using Interac Online than they did during the same week in 2009. This simple and secure service allows Canadians to shop over the Internet using funds withdrawn straight from their bank account through web banking. Sale seekers can rest assured that the Interac Zero Liability policy protects them when making debit transactions, including Interac Online. They are not liable should fraudulent or unauthorized purchases occur.**
Canadian shoppers are coming to town
Canadians got their biggest spend on in the Empire State when it came to cross border shopping in December 2010, with New York leading as the top state for debit transactions and bumping 2009 first place state, Florida, to second.
The end of year vacation season and gift shopping go hand in hand, and Acxsys Corporation's Cross Border Debit service enables more Canadian cardholders to use their debit card to shop at more than two million merchants in the United States.
Top five States by percentage of debit transactions made in December 2010:
| Rank | State | Percent of total transactions |
| 1. | New York | 18.9% |
| 2. | Florida | 16.5% |
| 3. | Washington | 15% |
| 4. | Michigan | 12% |
| 5. | Maine | 6.52% |
About Interac Association
A recognized world leader in debit card services, Interac Association is responsible for the development and operations of the Interac network, a national payment network that allows Canadians to access their money through 59,000 Automated Banking Machines and 727,000 point-of-sale terminals across Canada. Interac Association has also recently introduced Interac Flash™, a secure contactless enhancement of Interac Debit that allows Canadians to pay for items instantly by simply 'flashing' their Interac chip debit card at a reader that supports Interac Flash.
Interac Association was founded in 1984 and is comprised of a diverse membership that includes banks, trust companies, credit unions, caisses populaires, merchants, and technology and payment related companies.
Other related services offered by Acxsys Corporation, whose shareholders are the architects of the Interac network, include: Interac Online, for secure online payments made directly from a bank account; Interac e-Transfer, for the transfer of money from one person's bank account to another person's bank account using an email address or mobile phone number***; and international services, which provide Canadian cardholders with point-of-sale access at nearly 2 million U.S. retailers, and PULSE, Discover, Diners Club International and UnionPay cardholders access to ABMs in Canada.
For more information, please contact:
Caroline Hubberstey
Interac Association / Acxsys Corporation
chubberstey@interac.ca
416-869-8320
®, ™: Interac, the Interac logo, Interac Flash and Interac e-Transfer are trade-marks of Interac Inc. Used under license.
* The Strategic Counsel, January 2011.
** Protection applies to losses resulting from circumstances beyond a cardholder's control. Some conditions apply. Read more about the Interac Zero Liability Policy at Interac.ca.
*** The Interac e-Transfer service, for secure person-to-person payments, is currently available to customers of over 70 banks and credit unions including BMO Bank of Montreal, CIBC, President's Choice Financial, RBC Royal Bank, Scotiabank and TD Canada Trust among others. Central 1, through participating credit unions, offers the option of using mobile phone numbers, in addition to email, to notify Interac e-Transfer recipients. Money never travels by email or text message. More information about the Interac e- Transfer service and a complete list of participating banks and credit unions can be found at www.interca.ca.
