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51% transactions in Canada carried out in cash

Categories : Cash enables an immediate transfer of value, Cash is trust
January 11, 2018
Tags : Canada, Cash, Digital money, Money
Cash is not only the most popular payment method in Canada, it's also the cheapest to handle for merchants.
Communication Team / Equipo de Comunicación

This post is also available in: Spanish

Over half of payments in Canada are carried out in cash, making it the most popular payment method in the country. In comparison, 31% of Canadians use debit and 19% credit cards. Each payment method is used for different sums. Indeed, cash is the preferred payment method for smaller purchases while debit and credit cards are normally selected for medium and large transactions respectively.

It was found that credit cards have gained in popularity thanks to the many reward programs offered – an effective way to lure consumers into using them. Nevertheless, these perks come with hidden costs for consumers and merchants alike. Canadian shop owners spent nearly $10 billion in processing fees in 2014 alone, costing them on average $2.08 per transaction. Cash is the cheapest payment tool to process (29 cents) immediately followed by debit cards (30 cents).

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This post is also available in: Spanish