Fresh research from Mogo, a leading digital payments and financial technology company, has revealed that a strong majority of Canadians are missing out on earning cashback during the pandemic. When asked if they had made any major purchases in the last year with a cashback card, 58.7% said no, and 30.7% admitted that they don’t have a cashback card in the first place. This creates a combined total of 89.4% of Canadians who simply aren’t maximizing their cashback potential.
Mogo, which offers the Mogo Visa* Platinum Prepaid Card (a 2% cashback card that delivers the rewards of a credit card and the control of a debit card), surveyed 1000 Canadians on their current strategy on rewards cards, spending during COVID and other critical consumer issues.
Key Findings of the survey:
National:
Canadians’ two cents on 2% (cashback)
20.8% of Canadians believe that 2% of their total expenses for the year would equal the significant sum of $2,000.
More than half of Canadians (64.1%) report not using cash as much as they did before COVID, speaking to the need for a clear points card strategy.
Canadians want to do the right thing (with cashback)
Asked what they would spend with 2% cashback on all purchases made this year, Canadians were stereotypically responsible, with 27.3% saying they would save it and 25.9% stating they would use it to pay off debt. 14.6% of Canadians would use cashback for monthly expenses. Only 15.6% of Canadians would use it to ‘buy more things.’
A flight pattern of ‘points purgatory?’
72.9% of Canadians say they would NOT use a travel points card to buy non-travel items knowing the value of points is less when redeemed.
But travel points aren’t the only rewards available to consumers. “We created a cashback card that gives you more control than a debit card with more rewards than a credit card, so you can effortlessly avoid debt, overspending, and overdraft while saving more for your future,” Dave Feller, Mogo CEO explains. “With the MogoCard, you’ll earn an industry-leading 2% unlimited cashback every time you spend–that’s unheard of Plus, you can withdraw your rewards as cash or hold them as bitcoin, which has the potential to increase in value over time, unlike traditional travel points. Bitcoin is the best performing asset class of the last 10 years, so that 2% could turn into 5% or 10% or more. What other rewards card can do that?”
What Canadians want (to buy)
Asked what major purchases they plan to make in the next six months to a year, Canadians reported a cell phone (28.3), a seasonal wardrobe (19.8%)’premium masks’ (14.1%), ‘serious shoes’ (14.4%) and a major appliance (12.6%).
Canadians would be ‘a little happier’ with cashback on their partners’ card
Asked if they would be happier if their partners’ credit cards had cashback, 17.8% of Canadians said they would be ‘a little happier’, and 22.4% said they WOULD be happier for a combined total of 40.2% of Canadians happier with cashback.
Calculating cashback for Canadians
To show Canadians how much their 2% cashback could conceivably create, Mogo has created the Cashback Regret Calculator on their website at https://hey.mogo.ca/calculator/. With the calculator, Canadians can enter recent and planned purchases such as appliances, computers, cell phones or seasonal wardrobes as well as recurring monthly expenses to instantly calculate how much cashback they can earn or have already missed out on.
The calculator showcases what 2% cashback could mean for Canadians who are looking to save or may be struggling during the global pandemic.
SOURCE Mogo
