The old adage “Cash is King” may be on the way out, for good.
Moneris, Canada’s leading credit and debit card processor, is predicting a 70% drop in cash transactions by 2030, and that cash purchases will only make up about 10% of all money spent in the country 14 years from now.
It’s also predicting mobile payments will lead the way, especially among younger Canadians, because of it’s convenience and shorter wait times at point of sale.
Moneris recently found that 67% of Canadians aged 18-34, 56% aged 35-44, 48% aged 55-64, and 49% aged 65 and older preferred using contactless-enabled (tap) card to pay for their items – the same tap-to-pay method used in mobile wallets.
When looking at mobile wallets specifically, a recent Moneris survey found 25% aged 18-34 preferred using their smartphones to pay, over cards or cash.
“More Canadians – especially younger ones – are tapping their cards to pay as opposed to inserting them into payment terminals. We’ve seen the number of contactless transactions more than double this year, which is a strong indication that mobile payments are going to see a huge lift.” – Rob Cameron, Chief Product Officer at Moneris.
So why aren’t more Canadians using a mobile wallet? 62% say they’re still unsure about the security of doing so.
And there are also misconceptions about what exactly can be stored or filed in a mobile wallet, and which stores are accepting the payments.
As is stands, credit cards are the most frequently used payment method in Canada. About 60% of people are using them.