A recent MasterCard Advisors white paper suggests that non-cash instruments account for 90% of payments in this country, among the highest rates in the world. It looks like we like to use our credit instead of our cold hard cash to make the majority of our purchases.
The white paper suggests that cash accounts for only around 10% of the total value of all consumer transactions in Canada, however it accounts for a little more than 40% of the number of transactions.
The image below shows those countries that are nearly cashless.
Courtesy of mastercardadvisors.com
The Nearly Cashless Countries have already created an infrastructure for making cashless purchases through credit cards, debit cards, retail cards, and other mobile friendly options. Solutions for low value payments can be done through PayPass. Mobile wallets are one of the newest modes of payment that will affect the way we make purchases as we move forward.
The white paper has measured a readiness factor for Canada of 91, which is the highest of all nations. Readiness looks at other macro-economic factors found to be correlated to consumer cash usage. Canada’s high score reflects good availability and affordability of financial services, modern infrastructure, access to modern technologies, a small informal sector and lack of corruption. It suggests there are no macro-economic barriers to growth of electronic payments in Canada going forward.
What can we take from this?
As consumers, we can appreciate the many options available to us for making payments; however it’s never been easier to find ways to blow our budgets. It’s just as easy now to use your plastic to buy a coffee or chocolate bar without blinking an eye. Are we accounting for every purchase we make using credit or just the big ticket items. Making an inventory of purchases has never been more important in managing our budget and our debts. Living in a cashless country has its benefits but also comes with some hazards..
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