No cash, no worries

Moneris Mobile Wallet survey says cash is on its way out

TORONTO, ON, September 20, 2016 – Trips to the grocery store will never be the same if Canadians ditch their wallets for their phones or credit cards. Moneris says cash transactions at the cash register will drop by 70 per cent in 2030. Why? By then Canadians will have embraced digital payment technologies instead of opening up their wallets to take out cash. No cash, no worries.no cash

So what do Canadians love about digital payment options? They love the no hassle convenience. Tap and go technology is fast and Canadians of all ages are using digital technology to pay their bills at the checkout:

  • Sixty-seven per cent aged 18-34
  • Fifty-six per cent aged 35-44
  • Forty-eight per cent aged 55-64
  • Forty-nine per cent aged 65 or more

“I can understand why many Canadians would embrace the convenience of paying for their purchases with the tap of their credit card however what is concerning is that many of these purchases are attached to a high interest rate credit card,” says Jeffrey Schwartz, executive director, Consolidated Credit Counseling Services of Canada.

“If you are carrying a balance from month to month and only paying the minimum, the purchases will cost you double and triple the amount in added interest,” says Schwartz.

Maybe the days for cash are numbered. The findings from the Moneris Mobile Wallet Survey indicate cash is no longer king when consumers go shopping. Canadians prefer paying through other means:

  • Credit card: 59.7 per cent
  • Debit card: 55.9 per cent
  • Cash: 45.7 per cent
  • Contactless enabled card (tap to pay): 31.3 per cent
  • Retailer app (such as Starbucks app): 4.8 per cent
  • Mobile wallet (such as Apple Pay, Samsung Pay, etc.): 2.5 per cent

“There is nothing wrong with shopping with your credit card. The problem lies when you treat your credit card as free money and you do not pay it off in full – effectively you are creating a mountain of debt,” says Schwartz.

For consumers who are ready to say good bye to their wallet, Consolidated Credit Counseling Services of Canada offers the following tips:

  1. Watch your credit card and bank account statements. It is easy to lose track of your digital payments however if you review your statements on a regular basis – you will have a better understanding of where your money is going.
  2. Tally it up! Keeping a tab on your cash is easy. Once it’s out of your wallet – it’s gone. A good way to stay on top of your digital transactions is to track it with a budgeting tool to keep you honest.
  3. Say yes to limits. Adding a predetermined purchase amount on your digital payments can be the difference of managing your debt, being in debt or being debt free. Avoid growing a mountain of debt and add a limit.
  4. Don’t forget cash. Shopping with only cash is an effective way to keep your budget on track. And the beautiful thing about cash, once it’s gone, it’s gone – there’s no opportunity to rack up debt.

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About Consolidated Credit Counseling Services of Canada, Inc.:

Consolidated Credit Counseling Services of Canada is a national non-profit credit counselling organization that teaches consumers about personal finance.

For more information or to request an interview with Jeffrey Schwartz, please contact:

Natasha Carr, Community and Public Relations Manager, Consolidated Credit Counseling Services of Canada, Inc., T: 416-915-7283 ext.1041, C: 416-830-4720, F: 416-915-5200, E: ncarr@consolidatedcredit.ca

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pr@consolidatedcredit.ca
1-800-656-4120 x 1064