{"id":79918,"date":"2021-05-25T06:00:00","date_gmt":"2021-05-25T06:00:00","guid":{"rendered":"https:\/\/interac1.wpengine.com\/?post_type=content&p=79918"},"modified":"2025-05-30T16:30:22","modified_gmt":"2025-05-30T20:30:22","slug":"fuel-for-economic-recovery-canadians-want-to-support-local-businesses-in-their-communities-and-half-are-willing-to-pay-more-if-needed","status":"publish","type":"content","link":"https:\/\/www.interac.ca\/en\/content\/news\/fuel-for-economic-recovery-canadians-want-to-support-local-businesses-in-their-communities-and-half-are-willing-to-pay-more-if-needed\/","title":{"rendered":"Fuel for economic recovery: Canadians want to support local businesses in their communities and half are willing to pay more if needed"},"content":{"rendered":"\n

Interac survey reveals pandemic has also increased consumer demand for digital payment options, whether online, in-app or in-store<\/em><\/p>\n\n\n\n

TORONTO \u2013 May 25, 2021 \u2013 A new survey from Interac Corp. reveals Canadians are eager to support businesses in their own backyards. Three-quart\u00aders of Canadians (75 per cent) said the pandemic has made shopping and supporting businesses in their community more important, and more than half of Canadians (55 per cent) say their desire to support local businesses is causing them to shift their spending by shopping closer to home.  The shift to remote work, coupled with the desire to shop locally, may be lasting trends that will positively impact local business recovery post-pandemic.<\/p>\n\n\n\n

Shopping local isn\u2019t just lip service or a matter of convenience. Canadians are willing to take additional steps to support local. Close to half of Canadians (48 per cent) are willing to wait longer for delivery or pickup. Fifty per cent are willing to pay up to five dollars more and 31 per cent up to 10 dollars more for the same product, if needed, to support local businesses instead of purchasing from major online retailers.<\/p>\n\n\n\n

“While spending is still down overall and the impact of the pandemic to small businesses is still being felt across the country, Canadians are telling us that when they do spend, they want their dollars to support small business recovery post-pandemic,\u201d said William Keliehor, Chief Commercial Officer, Interac Corp. \u201cWe also know digital, contactless payments are an important driver of choice. Ensuring local businesses can serve customers safely with digital solutions will be an important part of the economic recovery when spending returns to pre-pandemic levels.\u201d<\/p>\n\n\n\n

Sixty-six per cent of Canadians said businesses that fail to adapt to allow digital payments will struggle. This demand is reflected in a 333 per cent year-over-year increase in Interac<\/em> Debit payments made within a merchant app or website1<\/sup>, and a 113 per cent year-over-year increase in Interac<\/em> e-Transfer transactions being received by businesses across Canada since the pandemic began2<\/sup>. The increase in business-related transactions contributed to the overall growth of the platform, where over 832.7 million Interac <\/em>e-Transfer transactions were sent since the beginning of April 2020, a 52 per cent year-over-year increase3<\/sup>.<\/p>\n\n\n\n

\u201cOur transaction volumes show just how many businesses are already turning to digital payments to help their consumers transact in the new normal, which is a promising trend that will contribute to recovery when Canadians return to pre-pandemic shopping frequencies across all major types of business,\u201d Keliehor continued. \u201cThe stickiness of digital payment solutions will have a long-term impact on Canada\u2019s retail industry. Businesses who prioritize integrated payment options across the consumer\u2019s shopping journey, whether online, in-app or in-store, will be better positioned in the future.\u201d<\/p>\n\n\n\n

When shopping local, Canadians are still looking for choice in payments. Seventy-two per cent of Canadians believe they should have the option to pay with debit when checking out online, making a purchase in-app or paying in-store or curbside (a five per cent increase since we conducted this study in August 2020). Nearly 70 per cent believe businesses that offer debit in-store should also accept debit for online payments.<\/p>\n\n\n\n

Other key findings from the survey include:<\/p>\n\n\n\n