It’s becoming harder and harder to find Canadian businesses that insist upon being cash-only. Of course, they are out there. But they exist in dwindling numbers. And this is because Canada – as our clever blog title has pointed out – is credit card country! With each passing year, more and more Canadians ditch their cash-carrying ways and rely on those convenient little pieces of plastic to pay for their purchases.
“It just makes things easier,” shared one of our associates last week, “When I pay for things with my credit card, I don’t have to worry about having enough cash on me. I also don’t have to worry about losing my cash or being robbed. Plus, think about all of the perks that come with using credit cards. I get rewards points, cash back and all kinds of stuff just for using the card the same way I’d use my cash.”
Are we becoming a cashless society?
Evidence shows that cashless is the direction that Canada is going in. Of course, there are many people who still like to keep some cash on them. But, as mentioned, there is a growing number of Canadians who prefer not to carry any cash at all. Credit card usage is making cash transactions scarce. On FinancialPost.com, Gordon Isfeld reveals that a 2015 Bank of Canada study found that increased credit card use has diminished cash purchases.
“Cash use in terms of volume has fallen, while the cash value share has remained relatively constant,” Isfeld quotes the bank about the study, “This decrease is partly due to the increased use of payment innovations, such as contactless cards and stored-value cards, that compete with cash in terms of ease of use for small-value transactions.”
What other findings came of the Bank of Canada study?
Isfeld writes that the Bank of Canada Review is a quarterly examination of trends and issues. Between 2009 and 2013, the examinations found a decline of cash transactions in the retail sector. Dropping from 54 percent to 44 percent, the numbers reveal the first time that less than half of retail purchases made in Canada were paid for with cash.
As you may have guessed, the studies also found that credit card usage rose 31 percent over the same span of time. At Canadian POS Corporation, we can’t claim to be surprised by these numbers. For many years, we’ve known that credit card use in Canada is a growing trend. Clients who have taken advantage of our top-of-the-line POS terminals have discovered that credit card acceptance is an easy way to increase sales.
At Canadian POS Corporation, we proudly offer Canadian business owners both Countertop and Wireless POS options. Our compact and easy-to-use Verifone VX 820 is a great countertop terminal which accepts all contactless, chip and magnetic stripe payments. Our just-as-compact and ergonomic Verifone VX 680 is all-in-one mobile solution that efficiently and securely processes transactions anywhere.
For more information about each of these great POS terminals, please don\’t hesitate to call Canadian POS Corporation at 1-877-748-2884 or email us at info@localhost.