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It is constantly announced that its end is near, but cash is not dead. At least not yet.
Just look at the discontent caused, just last week, by the Desjardins Group’s announcement to close approximately a third of its service centers and ATMs by the end of 2026. The reason for this is the shift towards ceases more electronic of our payment methods.
What exactly is it? The Bank of Canada recently published a report in which it outlines trends in the use of different payment methods, based on surveys conducted over the years among the Canadian population.
The bottom line is that we haven’t completely given up on cash, even as the popularity of contactless and online payments has skyrocketed.
Here are some things to remember.
1- First: to the question “have you made a withdrawal from an ATM in the last week?” », in 2009, 50% of those questioned answered in the affirmative. In 2022, the positive response rate has decreased significantly. But it still stands at nearly 29%, which means that more than one in four Canadians still have the habit of withdrawing cash.
2. Cash transaction volume has also fallen, but remains stable since the pandemic. In 2009, it accounted for approximately 54% of trading volume. In 2020, it was only 21%. Two years later, the hemorrhage seems to have stabilized since this rate remained around 22%.
3- The big winner of payment methods? Contactless credit card transaction — technology also known as paypass. While its use was almost zero in 2009, the volume of transactions by this payment method jumped to almost 32% in 2022. Payment by contactless debit card was also not used at all, but was climbed to 13% over the same period.
4- And what about Canadians who choose to completely turn their backs on cash? According to data from the Bank of Canada, approximately 13% of Canadians already no longer use cash. Nearly 7% are considering it in the short or medium term, while 80% do not plan to stop using it.
Certainly, the heyday of cash has passed, but its time has not yet come.