Ask the majority of Canadians if they have cash in their wallets, and you’ll likely get a confused look and a “no, why would I?” in return. What was previously the most dominant form of payment for everyday transactions began phasing out in the 1990s, when digital banking and debit cards became incredibly popular. As digital wallets, seamless online transfers, debit and credit cards, and even cryptocurrencies can get the job done, people would much rather have the convenience of scanning, tapping, and transferring than handling physical cash.
With all this in mind, is it safe to say cash has lost its crown?
No PIN, No Problem
Contactless payments are the most seamless way to pay, but the technology hasn’t been around for long. While the tech was introduced in payment cards and terminals in the early 2000s, it was still in its experimental stage and adoption was slow as merchants stuck to what they knew.
Once major payment networks like Visa and Mastercard launched their own programs around 2010, however, people started to take notice, and contactless became much more available. With time, Canadian retailers and systems began seeing their real potential, and everyone was tapping up a storm. Now, tapping a card has become so routine that Canadians expect contactless payments to be readily available.
The Pandemic’s Role in the Cashless Movement
Tap-to-pay was already gaining momentum before 2020, but the COVID-19 pandemic gave that movement a serious shove. Because everyone was so concerned about virus transmission through physical contact, both consumers and businesses needed to change how they handled all things physical, one of which was the transaction. Canadians who preferred cash were forced to switch to contactless options, and businesses began abandoning cash altogether—those habits stuck even after the pandemic was brought under control. Local marketplaces and independent boutiques also began accepting contactless payment options in order to keep up.
And then there was the reality that no one was leaving the house. Companies still needed ways to do business, and consumers needed (and wanted) to shop. From there, online shopping, contactless delivery options, and subscription services became normalized and even preferred later on.
QR Codes and e-Transfers
Yet tap-to-pay isn’t the only way Canadians handle in-person purchases. Interac e-Transfers and QR codes made it so that sending money to a friend or paying your landlord didn’t have to be a whole ordeal. E-Transfers makes it so that as long as both parties have a Canadian bank account, all they need is a phone number or email address and the funds, and the transaction will go through in a matter of minutes.
QR codes are a fantastic, professional way to accept payments for merchants that can’t justify the cost of expensive hardware. Customers can simply scan a code with their smartphones and pay at farmers markets, pop-up stores, and other mobile businesses without a hitch, helping to lower the barrier for businesses of all sizes to go cashless.
Public Services and Cashless Payments
The beauty of the cashless shift is that entire municipalities have also started favouring contactless. Services that were once confined to physical offices, like paying for parking and renewing your license, can now be done online with Interac e-Transfer or a digital wallet. Many parking meters have tap-to-pay card scanners, and city-wide parking apps let drivers extend time and pay without returning to the lot.
Transit systems have also long adopted the contactless model. Montreal’s OPUS card and Toronto’s PRESTO card are both examples of convenient tap-to-pay systems that eliminate tedious paper tickets and the hassle of exact change. These systems have also evolved further by allowing riders to tap their debit or credit cards directly instead of purchasing a transit-specific one.
The Digital Wallet’s Role in Modern Entertainment
Serious stuff aside, the cashless movement has also affected how we have fun. We subscribe to streaming services, buy event tickets, and even play mobile games without reaching for a wallet. Since entertainment has become digital, instant, and on-demand, payment methods have developed to match that.
In the broader gaming industry, making microtransactions and in-app purchases is made seamless, thanks to the efficiency and instant processing of digital wallets. Even mobile casino apps now support the Gigadat casino experience, allowing Canadian players to use the secure and familiar Interac e-Transfer system.
Let’s Not Forget Who’s Left Behind
Despite these seemingly beneficial moves for financial speed and security, not every Canadian benefits equally. Those from older generations, where cash was king and technology was less central, may feel overwhelmed by these changes.
Older Canadians may feel like there are more barriers in place as the system caters to a younger, tech-savvy population, making it harder for them to participate. Those who are unbanked and underbanked may also face challenges, as do those from rural communities. While cash is still accepted for essential services, there’s a digital divide that reminds governments and businesses of the need to stay inclusive.
Going “cashless” has proven convenient for the public and incredibly lucrative for businesses and governments. Modernized payment systems offer the speed and security that cash can’t match. The variety of options has positively changed how Canadians conduct their lives, from engaging with public services to making everyday purchases and enjoying entertainment.It’s clear that cash has been dethroned as society’s favourite way to pay, but will it ever die out? Moneris predicts that cash purchases will make up only 10% of money spent in Canada by 2030, but the tangible and universally understood nature of cash still gives it a place in society, especially for those who aren’t ready to hop on the digital bandwagon.
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