Cash is still King, eh!

The Canadian Payment Methods and Trends (CPMT) report published in November revealed that Canadians still vastly prefer cash over other forms of payment. However, use of cash is slowing as demands for speed, convenience and loyalty programmes at merchants make themselves felt.

In 2015 the payments market grew to 20.9 billion transactions, worth more than $8.9 trillion CAD (or £5.3 trillion GBP). Contactless payments increased by 70% in 2015, in both volume and transactional value.

Online payments is the biggest growth area, with 120 million transactions and $45 billion CAD transacted. But still only 0.5% of all value/transactions made.

Contactless payments increased by 70% in 2015, in both volume and transactional value.

Cash enjoyed the greatest transactional volume, but usage has declined by 20% since 2011.

Cheque usage (remember those) has declined by 25%, but a higher transactional value has been maintained by the majority of cheques being business  use.

These trends broadly match the G4S 2016 Cash Report for Europe which demonstrated cash was being overtaken by electronic and online payments, but was by no means being eradicated. These new technologies are still finding their niche in the market.