Canadians Willing to Pay More to Support Local Businesses

A new survey reveals Canadians are eager to support businesses in their own backyards. Three-quarters 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.

Shopping local isn’t 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.

“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,” said William Keliehor, Chief Commercial Officer, Interac Corp. “We 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.”

“Our 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,” Keliehor continued. “The stickiness of digital payment solutions will have a long-term impact on Canada’s retail industry. Businesses who prioritize integrated payment options across the consumer’s shopping journey, whether online, in-app or in-store, will be better positioned in the future.”