“In 2024, Canadians paid with cashMoney in physical form such as banknotes and coins. More for one in five purchases, and almost four out of five held cash on hand in their wallets, purses or pockets. They held more cash than in 2023 because more of them held higher denominations. The percentage of Canadians self-identifying as cashless remained at 13% in 2024, the same as in 2023.”
This stability is notable, especially as the world shifts toward cashless transactions. The survey, which tracks consumer paymentA transfer of funds which discharges an obligation on the part of a payer vis-à-vis a payee. More habits, provides valuable insights into how Canadians manage, perceive, and use cash in their daily lives.
The survey distinguishes between two types of cash holdings:
In 2024, about 80% of Canadians reported having some cash on hand, a figure that has remained consistent since 2022. The average amount of cash carried increased slightly from $140 in 2023 to $156 in 2024, an 11% nominal rise. However, when adjusted for inflation, real cash-on-hand holdings have been relatively stable since 2017, suggesting that Canadians are maintaining a steady level of liquidityDescribes the extent to which assets or rights can be converted into cash without causing a significant decrease in the asset’s price. Accordingly, liquidity is often inversely proportional to the profitability of the asset and involves the trade-off between the selling price and the time needed to convert it to cash. In finance, cash is considered the most liquid asset and cash is sometimes used as a synonym for liquidity (e.g. cash reserves; cash pooling…). More despite economic fluctuations.
Interestingly, the increase in cash holdings was primarily driven by higher-income individuals, with the upper three deciles contributing most to the rise. The median amount of cash on hand also saw a modest increase, rising from $70 to $75 in 2024.
For other cash holdings—banknotes stored outside of wallets—only 22% of Canadians reported keeping cash in this manner. The median value of these holdings was $200, down from $240 in 2023 but consistent with pre-pandemic levels. This suggests that while Canadians still value cash as a store of valueOne of the functions of money or more generally of any asset that can be saved and exchanged at a later time without loss of its purchasing power. See also Precautionary Holdings. More, its role as a medium of exchangeThe Eurosystem comprises the European Central Bank and the national central banks of those countries that have adopted the euro. More remains more prominent.
Canadians tend to carry smaller denominations ($5, $10, and $20 bills) more frequently than larger ones ($50 and $100). However, the survey noted a gradual increase in the share of Canadians holding larger denominations, possibly due to inflationary pressures and a preference for higher-value notes in circulation.
Cash withdrawals from automated banking machines (ABMs), bank branches, and cashbackA service whereby the customer pays electronically a higher amount to a retailer than the value of the purchase for goods and/or services and receives the difference in cash. It is also a reward system associated with credit card usage, whereby the consumer receives a percentage of the amount spent on the credit card. More at retail locations all saw an uptick in 2024:
Despite these increases, withdrawal frequencies remain below pre-pandemic levels, reflecting a broader shift toward digital payments. However, the rise in withdrawal amounts suggests that when Canadians do use cash, they prefer to withdraw larger sums less frequently.
The survey also assessed how easily Canadians can access cash. In 2024:
These findings align with objective distance-based measures of cash accessibility, indicating that most Canadians do not face significant barriers to obtaining cash. However, rural and urban disparities persist, particularly regarding access to bank branches, which may impact vulnerable populations who rely more heavily on cash.
Despite the growth of digital payments, 79% of Canadians do not plan to drop cash. Only 8% intend to stop using cash in the future, while 13% already consider themselves cashless. Notably, over half of those who claim to be cashless still carry some banknotes, likely for precautionary reasons or as a backup payment methodSee Payment instrument. More.
Most Canadians rated their $5 and $50 bills as being in good or excellent condition, with 55% describing their $5 notes as very good or excellent and 74% giving similar ratings to their $50 notes. This positive perception reflects the Bank of Canada’s efforts to maintain high-quality polymerA substrate used in the printing of banknotes, made of biaxially oriented polypropylene (BOPP) polymer. Polymer banknotes were first introduced in Australia and are widely used around the world. More banknotes, which are more durable than their paperSee Banknote paper. More predecessors.
Cash accounted for 21% of all purchases by volume and 11% by value in 2024, maintaining its position as the third-most-used payment method after credit and debit cards. While its share has remained stable since 2020, cash is increasingly used for smaller, in-person transactions, where it competes with contactless payments.
Mobile payments, which include digital wallets and bank account apps, gained traction in 2024, accounting for 5% of all transactions. However, cash remains a preferred option for certain demographics, including:
Cash plays a critical role in ensuring financial inclusion. The survey highlights that:
“The future of cash will depend on many factors. Four important examples of these factors are consumer preferences, payment innovations, cash accessibility at branches and ABMs, and merchant acceptance.”
Key steps for policy-makers include:
The Survey underscores cash’s enduring relevance in Canada’s payment ecosystem. Cash remains a stable and trusted medium of exchange, particularly for small transactions and vulnerable populations. Ensuring continued access to cash is not just about preserving tradition—it’s about safeguarding financial inclusion in an increasingly digital world.