The way to a cashless society has accelerated greatly thanks to the crisis
https://www.ctvnews.ca/health/coronavirus/are-canadians-ready-to-go-cashless-after-coronavirus-1.4970838
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“We project the pandemic will accelerate several years’ worth of digital transformation,” says Stacey Madge, country manager and president of Visa Canada.
According to Payments Canada data released in mid-May, 62 per cent of Canadians reported using less cash and 42 per cent had avoided shopping at places that don’t accept contactless payments. Many users of e-transfers, PayPal and credit cards said they were using them more.
“While we have seen a continued shift towards digital payments over a number of years in Canada, there’s no doubt that the prevailing pandemic has accelerated this shift – and will likely act as a catalyst in transforming the Canadian payment landscape forever,” said Tracey Black, CEO of Payments Canada in a press release.
According to Interac, a record 61.3 million e-transfers took place in April, up 62 per cent year over year, and first-time users increased by 43 per cent since mid-March. About half of consumer spending on Visa cards in January was face to face. In just weeks, 60 per cent of spending was what is called “card not present” in the business. That was mostly driven by grocery delivery or pickup and restaurant delivery, says Madge. To minimize the touching of PIN pads in stores, banks and credit card companies raised the limit on tap transactions from $100 to $250.
“Canada overall, is a very low cash-usage country. Of about a trillion dollars in personal consumer expenditures, less than five per cent of that is cash,” says Madge. One study in 2017 concluded Canada was the No. 1 most cashless country in the world, topping the list because the country had more than two credit cards per person and because 57 per cent of payments were cashless. A Bank of Canada survey the same year found that about one in 10 respondents said they were entirely cashless. At the end of 2019, about 73 per cent of total transaction volume in Canada was electronic, says Ramesh Siromani, senior vice-president of enterprise payments at RBC, and cash use has declined about 40 per cent in the last five years.
Another way we are following Sweden
Sweden has long been the poster-nation for a cashless society, by some estimates as soon as 2023. It’s so far down that road that many bank branches are cashless and thousands of Swedes even went into the sci-fi realm by getting microchips implanted in their hands that allow payments with a swipe of the hand.
My wife still uses cash since she buys and sells online with pickup, however that has stagnated since the crisis and changed to e-transfers for some transactions. She also uses it for plant sales. I use(d) cash for coffee and other small purchases and to pay for pool opening/closing help. (They like to keep it off the record) Other than that, it's mostly credit card and some e-transfers. All the regular stuff has been online payments for well over a decade. Kinda funny, my smallest is just having to learn all about cash (for counting). So the most use of cash atm is to learn math haha.