Young Canadians drive faster cashback use on Chexy

Cashback use on Chexy's platform is rising faster among Canadians under 40 than among older users. Younger users are adopting cashback at 2.5 times the rate of those aged 40 and over.

Data from the payments platform showed cashback transaction volume among users under 40 rose 125 per cent between Q4 2025 and Q1 2026. Across all users, cashback transactions increased 97 per cent over the same period, while the number of users earning cashback grew 60 per cent.

Chexy, which enables credit card rewards on recurring payments such as rent, bills and taxes, serves more than 200,000 users across Canada. The figures point to a sharp rise in the use of cashback cards for everyday spending that often would not earn rewards through standard card payment systems.

The age divide in transaction volume was pronounced in the first quarter of 2026. Users under 40 processed CAD $24.7 million in cashback volume, compared with CAD $11.6 million among users aged 40 and over.

That gap was driven largely by the platform's customer mix, with younger users now making up most of its user base. Adjusted for headcount, however, older users spent more per person, suggesting heavier individual spending even as younger Canadians led overall adoption.

Changing habits

The figures reflect a broader shift in how rewards are used in household finances, particularly among younger consumers. Rather than treating points or cashback as a secondary benefit that builds over time, users are increasingly directing spending towards products that offer immediate returns on regular expenses.

Chexy's model centres on categories such as rent, utilities, taxes and other recurring payments. These large budget items have historically been difficult to put on a credit card in a way that generates rewards, making them a focus for financial technology groups seeking to extend card usage into everyday obligations.

The company has also expanded beyond its original focus on rent payments. It now supports utilities, taxes and vendor payments, and is seeing growing use among small and medium-sized businesses paying vendors, taxes and payroll.

Interest is also rising among landlords and property managers as payment providers seek to modernise rent collection and link it more directly with card-based loyalty schemes. Chexy also has a partnership with Aeroplan, allowing users to earn points on recurring payments including rent, taxes and bills.

Cost pressure

The increase in cashback use comes as Canadian households continue to face pressure on living costs. In that environment, cashback has become more attractive because it offers a direct and immediate return on spending rather than the delayed value associated with some travel or loyalty points.

The data also suggests the shift is not limited to short-term budget pressure. Younger consumers have become accustomed to payment tools that offer instant visibility, flexible options and quick returns, and that appears to be shaping how they choose rewards products.

Liza Akhvledziani, Founder and Chief Executive Officer of Chexy, said the figures pointed to a wider change in consumer behaviour.

"Rewards are no longer something Canadians earn passively over time, they're becoming an active part of how spending is managed day to day," said Akhvledziani.

"Younger Canadians are leading this shift. They're prioritizing flexibility and immediacy, using cashback as a way to unlock value in real time on the expenses they already have, rather than waiting to accumulate rewards over the long term."

For card issuers and payments companies, the trend may have implications for the design of rewards products. Cashback has long competed with points-based systems, particularly in travel, but the latest figures suggest immediate returns are gaining ground among consumers seeking a clear financial benefit from routine payments.

That may be especially relevant in categories such as rent and utilities, which absorb a large share of household budgets. If more of those payments move onto platforms that allow credit card use, rewards could become a more visible part of monthly budgeting rather than an occasional bonus tied to discretionary spending.

Older users remain significant contributors by value. Although they are adopting cashback products more slowly than younger users, their higher per-person transaction levels indicate that established spenders still account for a substantial share of payment volume.

The split points to two distinct user groups: younger consumers seeking frequent, immediate returns on regular expenses, and older users generating larger individual transaction totals through more consistent spending patterns.