Welcome!

News Feed Item

More Than Half of Canadian Consumers to Abandon Cash by 2020, According to Global Research Report

More than half (51 percent) of Canadian consumers expect to abandon cash by 2020, according to Lost in Transaction, a new research report conducted by Paysafe, a leading global payments provider. The report uncovered the rapid move towards a cash-free economy with half (56 percent) of Canadian consumers only visiting an ATM once a month and nearly one in five (19 percent) saying they rarely carry cash at all, with this figure rising to a quarter of 18-34 year olds. With the research showing two thirds (64 percent) of people rely less on cash than a year ago, the move away from physical currency looks set to continue.

The comprehensive study, undertaken in Canada, the US, and the UK, looks at attitudes to money and consumer buying behaviour, and examines how cash is merging with digital formats. It reveals increased consumer confidence in mobile shopping, the start of a shift to new payment methods such as cryptocurrencies and the potential for retailers to lose relevance without the right payment mix for customers.

The evolution of cash into digital formats is enabling consumers to move away from carrying hard currency. Contactless paved the way for this move in Canada, with nearly three out of five (58 percent) consumers having used it for payment, and 71 percent citing contactless as more convenient than cash. Nearly half (48 percent) went as far as to state they preferred to shop in places that accepted contactless. However, Canadians have not yet embraced cutting edge technologies as emphatically as consumers in the US and the UK, with one in ten (9 percent) having used cryptocurrencies (9 percent) and one in seven (14 percent) using mobile wallets.

There are several hurdles to overcome before a more widespread adoption of digital cash, with 64 percent of Canadians worrying about the security of contactless, and half (50 percent) of consumers concerned that they will be charged the wrong amount when using it. There are also more basic security issues to overcome for mobile wallets with significant concerns around people’s handsets. A third (34 percent) of people said they worried about their phone being stolen, while more than a quarter (28 percent) did not even want to take their cell phone out to pay. This is despite more than half (53 percent) saying they are increasingly confident about using their phone for shopping.

“In an industry as fast moving as payments, the future is here every day. It’s our younger generations that are forging the path to a cash-free society, and there is no doubt that the introduction of contactless and mobile payments, such as Android Pay’s entry to the Canadian market earlier this year, have been a driving force,” said Daniel Kornitzer, Chief Product Officer at Paysafe.

“As the line between online and offline blurs, the conventional commerce model is shifting dramatically, mediated by technology but driven by changing consumer expectation. Merchants need to invest in emerging technologies to stay ahead of consumer demand.”

Cross-market comparisons:

                   
      Canada     US     UK
Average amount of cash people carry in their wallet    

$50 or
under

    $50    

£20 or
under

Percentage of people using mobile wallets     16%     31%     24%
Percentage of people using cryptocurrencies     9%     14%     12%
Percentage of people who dual browse (use a mobile to browse & buy online while in a shop)     41%     55%     41%
Percentage of people who have written a cheque in the last month     40%     50%     30%
           

Those using mobile wallets provided the following information:

                   
      Canada     US     UK
Percentage of people who would pay for higher priced items using a mobile wallet if limits were raised     81%     77%     82%
Percentage of people stating paying by mobile is more convenient than using cash     87%     81%     84%
Percentage of people stating paying by mobile is more convenient than using contactless     83%     80%     77%
           

The research demonstrates that it’s essential that businesses accommodate both traditional and emerging payments technologies when accepting and processing payments. That journey starts with merchants understanding how consumers use money, where they use it and which formats they prefer, as consumers expect to be catered for when parting with their money.

To read the full report, which includes comparisons between consumer attitudes to cash and alternative payment methods in the Canada, US, and UK, click here.

About Lost in Transaction
Lost in Transaction is an independent research project supported by the London-based agency Loudhouse. The research report was completed by surveying 3038 general consumers in the UK, Canada and the US about their online shopping behaviours and payment habits. Respondents came from six different age groups and a variety of different professions.

About Paysafe
Paysafe is a leading global provider of end-to-end payment solutions. Our core purpose is to enable businesses and consumers to connect and transact seamlessly through our industry-leading capabilities in payment processing, digital wallets and online cash solutions. Delivered through an integrated platform, our solutions are geared towards mobile-initiated transactions, real-time analytics and the convergence between bricks-and-mortar and online payments. With over 20 years of online payment experience, a combined transactional volume of US$48 billion in 2016 and over 2,300 staff located in 12 global locations, Paysafe connects businesses and consumers across 200 payment types in over 40 currencies around the world. Paysafe Group plc shares trade on the London Stock Exchange under the symbol (PAYS.L). For more information, visit: www.paysafe.com.

Follow Paysafe on Twitter / LinkedIn / Google + / stories.paysafe.com

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
In his session at @ThingsExpo, Greg Gorman is the Director, IoT Developer Ecosystem, Watson IoT, will provide a short tutorial on Node-RED, a Node.js-based programming tool for wiring together hardware devices, APIs and online services in new and interesting ways. It provides a browser-based editor that makes it easy to wire together flows using a wide range of nodes in the palette that can be deployed to its runtime in a single-click. There is a large library of contributed nodes that help so...
What is the best strategy for selecting the right offshore company for your business? In his session at 21st Cloud Expo, Alan Winters, U.S. Head of Business Development at MobiDev, will discuss the things to look for - positive and negative - in evaluating your options. He will also discuss how to maximize productivity with your offshore developers. Before you start your search, clearly understand your business needs and how that impacts software choices.
IBM helps FinTechs and financial services companies build and monetize cognitive-enabled financial services apps quickly and at scale. Hosted on IBM Bluemix, IBM’s platform builds in customer insights, regulatory compliance analytics and security to help reduce development time and testing. In his session at 21st Cloud Expo, Lennart Frantzell, a Developer Advocate with IBM, will discuss how these tools simplify the time-consuming tasks of selection, mapping and data integration, allowing devel...
SYS-CON Events announced today that Cedexis will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Cedexis is the leader in data-driven enterprise global traffic management. Whether optimizing traffic through datacenters, clouds, CDNs, or any combination, Cedexis solutions drive quality and cost-effectiveness.
SYS-CON Events announced today that Mobile Create USA will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Mobile Create USA Inc. is an MVNO-based business model that uses portable communication devices and cellular-based infrastructure in the development, sales, operation and mobile communications systems incorporating GPS capabi...
While some developers care passionately about how data centers and clouds are architected, for most, it is only the end result that matters. To the majority of companies, technology exists to solve a business problem, and only delivers value when it is solving that problem. 2017 brings the mainstream adoption of containers for production workloads. In his session at 21st Cloud Expo, Ben McCormack, VP of Operations at Evernote, will discuss how data centers of the future will be managed, how th...
There is huge complexity in implementing a successful digital business that requires efficient on-premise and cloud back-end infrastructure, IT and Internet of Things (IoT) data, analytics, Machine Learning, Artificial Intelligence (AI) and Digital Applications. In the data center alone, there are physical and virtual infrastructures, multiple operating systems, multiple applications and new and emerging business and technological paradigms such as cloud computing and XaaS. And then there are pe...
Why Federal cloud? What is in Federal Clouds and integrations? This session will identify the process and the FedRAMP initiative. But is it sufficient? What is the remedy for keeping abreast of cutting-edge technology? In his session at 21st Cloud Expo, Rasananda Behera will examine the proposed solutions: Private or public or hybrid cloud Responsible governing bodies How can we accomplish?
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
SYS-CON Events announced today that Keisoku Research Consultant Co. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Keisoku Research Consultant, Co. offers research and consulting in a wide range of civil engineering-related fields from information construction to preservation of cultural properties. For more information, vi...
Today most companies are adopting or evaluating container technology - Docker in particular - to speed up application deployment, drive down cost, ease management and make application delivery more flexible overall. As with most new architectures, this dream takes significant work to become a reality. Even when you do get your application componentized enough and packaged properly, there are still challenges for DevOps teams to making the shift to continuous delivery and achieving that reducti...
Most of the time there is a lot of work involved to move to the cloud, and most of that isn't really related to AWS or Azure or Google Cloud. Before we talk about public cloud vendors and DevOps tools, there are usually several technical and non-technical challenges that are connected to it and that every company needs to solve to move to the cloud. In his session at 21st Cloud Expo, Stefano Bellasio, CEO and founder of Cloud Academy Inc., will discuss what the tools, disciplines, and cultural...
SYS-CON Events announced today that Massive Networks, that helps your business operate seamlessly with fast, reliable, and secure internet and network solutions, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. As a premier telecommunications provider, Massive Networks is headquartered out of Louisville, Colorado. With years of experience under their belt, their team of...
SYS-CON Events announced today that Enroute Lab will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Enroute Lab is an industrial design, research and development company of unmanned robotic vehicle system. For more information, please visit http://elab.co.jp/.
SYS-CON Events announced today that Ryobi Systems will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Ryobi Systems Co., Ltd., as an information service company, specialized in business support for local governments and medical industry. We are challenging to achive the precision farming with AI. For more information, visit http:...