Canada Speeding Towards A Cashless Society

We are living in a digital world. Perhaps, this is what will be the mark of the generation that we currently live in. The legacies left by decades of past are often marked by various innovations: the cell phone, the CD player, the television remote control and so on. By today’s standards, such inventions are practically old and obsolete. The digital world has clearly taken over.

The smart phone, the MP3 player, the internet and on-demand viewing services have all respectively replaced the before-mentioned creations. Considering that everything has gone digital, it’s important to take notice of Canada’s acceptance of such a culture. Canadians have widely accepted new age inventions as they bring about a much greater sense of every day ease and convenience.

And when it comes to spending money, this is especially true. “Recent research suggests many people are already effectively living in a cashless world, choosing credit cards, bank cards and online shopping over the old dollar bill,” writes Daniel Tencer of The Huffington Post Canada. Our nation, he insists, is quickly moving towards being a “cashless society”. And there are several signs that prove it.

Canada is tops for paying by card. Reaffirms Tencer, Canada is a world leader in paying with plastic. He writes that a 2011 RBS report found that 68 per cent of Canadians use credit or debit cards to pay for their purchases. This is compared to an average of 40 per cent usage of plastic across the rest of the world’s economies. Needless to say, Canada loves paying with plastic.

Canada eliminated the penny. Earlier this year, the Canadian Mint ceased to produce pennies. Making life just that much more inconvenient for those who like to pay with exact cash, this decision has caused a bit of confusion in the Canadian market. When paying with cash, sometimes totals must be rounded up and sometimes it must be rounded down to the nearest five cent denomination. Paying with plastic avoids this entire debacle.

Our dollar bills are going high-tech. “Even our paper money is turning plastic,” writes Tencer. With the introduction of the new polymer-based notes last fall, The Bank of Canada is highlighting its concern about fraud. The new plastic bills are meant to be more durable but also less susceptible to counterfeiting. Once again, the popular use of credit cards avoids the problem of cash fraud altogether.

Canadians are ready to go cashless (apparently). Tencer reveals that a recent Leger Marketing report found that 71 per cent of Canadians say that they are comfortable with never having to use cash again when making purchases. This marks a huge 44 per cent jump from the same question asked just a year prior. Some consumers never use any cash at all!

Tencer writes that a separate survey, conducted by RBC found that “three-quarters of women and two-thirds of men typically carry less than $50 in their wallet and rely on electronic transactions for purchases.” Perhaps, Canada is getting to a point where paying with plastic is mandatory. Clearly, your business will need to be well equipped to live in this digital era. Call Canadian POS Corporation 1-877-748-2884 for your terminal today!