According to a prediction by Canada’s leading credit and debit card processor Moneris Solutions Corporation, cash purchases will only make up 10 percent of all money spent in Canada by 2030.
The decline in cash usage is predicted to come as the digital wallet becomes more popular, especially among the younger generation. The reason why the transition isn’t happening faster is because of two common misconceptions: security and availability. Firstly, most consumers don’t trust the security of mobile wallets, even though they have been proven to be really secure. Secondly, the mobile wallet may not yet support your credit card provider, in addition to supporting loyalty cards.
In a recent consumer survey it was found that 67 percent of Canadians between the age of 18 and 34 prefer to use contactless payment technology. In a statement, Chief Product Officer at Moneris Rob Cameron said:
“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.”
The survey found that 25 percent of Canadians between the age of 18 and 34 prefer to use a mobile wallet over cash or card. This is a number that is growing rapidly thanks to the release of Apple Pay in Canada back in May 2016. Of Canadians aged 18-34, 46 percent said they would be more inclined to use a mobile wallet solution, like Apple Pay, if it were available for the kind of credit card they used.
Are you currently using a mobile wallet solution like Apple Pay in your day-to-day life? If not, what needs to change for you to adopt this growing technology? Let us know in the comments below.