Sept. 26, 2013, Toronto – Canadians prefer cashless payments, finds a new report from MasterCard.
MasterCard’s report, The Cashless Journey, identified Canada as one of the countries closest to being nearly cashless, along with Belgium and France. This places Canada among the most advanced countries in the world for cashless payments.
Much of this success can be attributed to early adoption of payment innovations like PayPass Tap & Go technology, EMV Chip migration, a modern payments infrastructure, and the rapid emergence in Canada of NFC payment ready terminals.
The report tracks how 33 major economies are progressing from cash-based to cashless societies and identifies new technologies, government programs and consumer preferences as key factors that are driving this shift, creating more productive and inclusive economies.
"The increased adoption of electronic payments has propelled Canada to leapfrog other countries and secure a top spot as nearly cashless," said Betty DeVita, president of MasterCard Canada, in a press release.
Of the $63 trillion that consumers spent globally in 2011, 34 per cent ($21 trillion) was done with cash while cashless payments accounted for 66 per cent ($42 trillion)
Ninety per cent of the total value of consumer payments is non-cash payments. Cash payments roughly sits at 10 per cent, and it only accounts for a little more than 40 per cent of the number of transactions. Countries including the United States (where an estimated 80 per cent of what consumers’ spent was cashless), and Singapore (69 per cent) are considered to be approaching a "tipping point" to becoming nearly cashless.
Emerging economies such as India (32 per cent), Russia (31 per cent) and Nigeria (10 per cent) are just emerging into the cashless segment. In many cases, they are shifting cash share at a faster pace than their more developed peers thanks to factors such as a growing middle class.
However, in countries such as Germany (where an estimated 76 per cent of the value of consumer spend was cashless), Japan (62 per cent), Spain (54 per cent) and Taiwan (43 per cent), cultural behaviour appears to be keeping cash usage higher than market conditions would suggest.
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