Canadians love to shop. However, it has become clear that Canadians like paying for their purchases with payment methods other than cash. As Kim Huynh of the Bank of Canada informs us, a 2017 survey found that cash is used in just 15% of the total value of goods and services purchased. Canadians aren’t alone. Huynh notes that several other countries have similar trends.
Credit and debit are the top choices for larger transactions.
“Payment cards such as credit or debit cards are the most popular alternative to cash, and over the years, more people have acquired these cards,” writes Huynh, “Nearly everyone in Canada owns at least one debit card, and about 9 out of 10 of us own a credit card. Credit cards are an increasingly common payment method—they now make up 39 percent of retail transactions and 56 percent of the total value of goods and services purchased.”
Huynh goes on to note that credit cards are especially popular for transactions above $15. Cash is still used predominantly for smaller purchases. Generally speaking, if a Canadian consumer wants to purchase a coffee or a muffin, cash is used to pay for it. “In fact, the lower the value, the more likely it is the buyer will choose cash,” says Huynh.
Credit cards are being used for small purchases.
For many Canadians, the size of the transaction makes no difference. After all, it’s the same process to pay for a purchase with a credit card whether the charge is $1 or $100. Especially with the advent of tap payments, a credit card purchase is quicker and easier than ever. Mario Canseco is the President of Research Co. On his website, he reports that many Canadians aren’t even carrying cash on them anymore.
A May 2020 poll conducted by Research Co. found that “more than three-in-five Canadians (63%) say that, over the course of the past month, there was a time when they did not have any paper money with them and had to make a small purchase (less than $10) with their credit or debit card.”
Stats show that Canadians prefer their cards over cash.
Here are some other findings from the Research Co. poll:
- 33% of Canadians complete their purchases with a debit card or e-transfer
- Credit cards are the main form of payment for residents of British Columbia (58%)
- Credit cards are the main form of payment for residents of Quebec (50%)
- Debit cards are the main form of payment for residents of Ontario (47%)
- Debit cards are the main form of payment for residents of Alberta (43%).
- 50% of Canadians aged 55 and over were caught without paper money in April 2020
- 64% of Canadians aged 35-to-54 were caught without paper money in April 2020
- 77% of Canadians aged 18-to-34 were caught without paper money in April 2020
Do you accept credit cards and debit cards at your business?
At Unity Payments, we proudly offer Canadian merchants a variety of high-quality POS terminals to choose from. You can easily and securely accept credit card and debit card payments with the Newland 910, the Ingenico Desk 5000 or the Ingenico Move 5000. To learn all about your options, please don’t hesitate to call us at 1-800-661-3761. You may also email us at email@example.com.