Canadians to Abandon Cash by 2020 as Mobile Payments Increase: REPORT
A majority of Canadian consumers are expected to abandon using cash for shopping in the next few year, reads a new report.
According to information gathered by global payments provider Paysafe in a report entitled “Lost in Transaction,” 51 percent of Canadian shoppers are expected to ditch cash entirely by 2020, with 56 percent of Canadians visiting an ATM once a month or less.
Interestingly, according to the report only 19 percent of Canadians saying they rarely carry cash, with this number rising to 25 percent of 18-34 year-olds. The report details that only 64 percent of people are relying less upon cash than last year, and this number seems likely to increase in the coming years.
The study, which was performed in Canada, the United States, and the UK, analyzes consumer attitudes in regards to money and consumer buying behavior, as cash is merging closer and closer with digital formats. The report reveals an increasing level in consumer confidence in regards to mobile shopping, new electronic payment methods, and the potential for retailers to increase payment options for customers.
“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,” he continues. “Merchants need to invest in emerging technologies to stay ahead of consumer demand.”
While the report does show an increasing confidence in mobile payment methods, 64 percent of Canadians continue to worry about the security on contactless payments, and 50 percent are somewhat worried about being charged in incorrect amount. 34 percent of Canadians are concerned about their smartphone being stolen, and 28 percent reportedly don’t want to take their cellphones out of their pockets to pay.
With more and more smartphones adopting mobile payment methods, it seems like in the future, cash might be a thing of the past.