Canadian Vending

Cash accounts for half of sales in Canada: Bank of Canada survey

November 16, 2017
By Canadian Vending

Ottawa – Despite the growing use of debit and credit cards, Canadians still use cash to process more than half of all transactions, suggests research by the Bank of Canada.

Recent consumer and merchant surveys by the Bank of Canada have highlighted the continued role of cash as a popular means of payment, especially for small-value transactions.

The research indicates that, in the future, innovations in retail payments are likely to compete with and replace cash in these areas. It is delivered in the report, “Acceptance and Use of Payments at the Point of Sale in Canada.”

Since the payments market is two-sided, consumers and merchants interact to determine the use of payment methods at the point of sale,” the BOC says in its report. “This highlights the importance of studying both consumer use and merchant acceptance simultaneously. This paper has made a first step in that direction.”


One goal of future research, it says, is to build models of payments that further study the two-sided markets and the role of network externalities, possibly by changing its research models to understand where consumers shop and how much they purchase as determined by the payment acceptance of merchants.

Read the full report.