We’ve posted numerous blogs that have highlighted Canada’s growing love for credit cards. It’s certainly no secret that we are a nation of savvy consumers who choose plastic over paper and coin. However, there are still a number of Canadian merchants who prefer to stick to their “cash only” ways. Studies have shown that such thinking will only lead to a decline in sales, as cash is being used less and less these days.
One such study was conducted earlier this year by market and consumer information firm, GfK . As reported by Lauren La Rose in The Globe and Mail, the 2015 online survey of 1,000 Canadians found that only 25 percent of transactions being made by them were in cash. This marked a 2 percent decline from 2014. Credit cards, however, were found to make up the majority of transactions made in both 2014 and 2015 at 42 percent.
Stephen Popeil is the vice president of GfK Canada. In the report, he remarks that Canadians are even using their credit cards for small transactions that, formerly, were most often paid in cash. “We’re clearly seeing that the use of cash is getting less and less in this country,” he is quoted as saying, “Is it ever going to disappear? I don’t think so, because of the nature of certain economies that are out there. But clearly, what we are seeing now is every year fewer and fewer payments are being made with cash.”
How popular is debit card usage in Canada? According to the GfK survey, 28 percent of transactions are made with debit cards. And although many of Canadian POS Corporation’s clients have reported higher rates of debit card transactions in their stores, one thing has been made clear. The use of credit cards and debit cards far exceeds the use of cash in Canada. Evidently, we’re becoming a cashless society.
On TheStar.com, The Canadian Press confirms this by reporting on a Bank of Canada survey that found that cash is used for less than half of the transactions made in our country. “Instead, shoppers are increasingly reaching for their credit card and new technology that allows customers to just tap their card and pay,” reads the report.
The research was conducted on behalf of the Bank of Canada by Ben Fung, Kim Huynh and Gerald Stuber. In an article written by the trio, it was revealed that “innovation in retail point-of-sale and online payment systems continues to be significant, particularly in enhancing the speed and convenience of the payment process for lower-value transactions, an area where cash still dominates.”
The Canadian Press also references a 2013 method-of-payment survey that noticed significant increases in credit card use from one year to the next, especially among millennials. “The use of cash was lower in younger people, but all age groups surveyed saw their use of bills and coins slip below the 50 per cent mark in terms of the number of transactions they did,” the report reveals.
At Canadian POS Corporation, we we’re very aware of the growing trend to ditch cash in favour for credit. If you’re still not accepting credit cards and debit cards as methods of payment in your store, it’s definitely time to contact us in order to learn how much your business will benefit from making the switch to being plastic-friendly. For more information, call Canadian POS Corporation at 1-877-748-2884 or email us at info@localhost.