Cash Usage in Canada

A Payments Canada survey has found that 31% of Canadians use cash for day-to-day purchases, with speed (38%), wide acceptance (38%) and the ability to pay without borrowing (25%) the key motivators. Budgeting, privacy, convenience, cost of paying and security are also important.

15% of people used cash for ‘under the table’ payments, ie. avoiding taxation. What was referred to as ‘spend guilt’ barely registered for those paying with cash, with only 10% experiencing it. Even so long after the pandemic, 26% of Canadians still feel the need to wash their hands after handling cash.

While cash use fell by 59% between 2017 and 2022, 87% of Canadians still use cash. 37% use cash for day-to- day payments, while also holding it for emergencies. 32% don’t use it day-to-day but hold it for emergencies.

While 13% have gone completely cashless, 55% of Canadians say they do not want a cashless society. Despite that, 49% think Canada will not be transacting in cash within ten years (31% disagree).

It seems the main use of cash is purchases costing $20 or less (70%), paying tips (55%), repaying borrowed money (38%), cash gifts (26%), donations (19%), avoiding tax (15%) and children’s pocket money (14%).

Problems and frustrations with paying in cash included:

• Large denomination notes not being accepted (27%)

• Not able to make online purchases (26%)

• Challenges recovering lost or stolen cash (22%)

• Less convenient than cards (16%)

• There are fewer bank branches or ATMs nearby (12%)

• Feeling more ‘spend guilt’ using cash versus cards or digital payments (10%).

Regarding digital currency, 36% of people liked the idea of a Canadian digital dollar, while 30% did not. One in four Canadians say they would not use a digital Canadian dollar. 63% would still use cash if a Canadian digital dollar was introduced.