Canadians Consistently Count on Cash

Canadian consumers see a future with cash, according to Bank of Canada research. The value of cash being withdrawn from ATMs and spent across the nation remains steady, and around 80 percent of citizens have no plans to go cashless in the coming years.

The latest Methods-of-Payment Survey shows that the share of cash payments by value has remained stable over the past five years, despite the number of transactions using cash declining. Unsurprisingly, 2021 also saw an increase in cash transactions over 2020. The Bank of Canada explains: ‘Canadians have been using cash less often, but for larger transactions. Restrictions linked to the COVID-19 pandemic particularly affected the use of cash for payments since cash is used in-person.’

The amount of cash withdrawn from ATMs has risen, although consumers are making fewer withdrawals overall. In a pattern repeated worldwide, economic uncertainty has driven people to increase their cash holdings. In 2009, the average cash on hand was reported as $72, rising to $106 in 2017 and reaching $127 by 2021.

Finally, Canadians are convinced cash will continue to play a role in the payments landscape for the foreseeable future, with the percentage of people reporting they have no plans to go cashless remaining around 80 percent since 2019. For comparison, those who do not use cash at all have remained relatively steady at around six percent.