TORONTO – More and more people around the world are going with cashless payments and Canadians are among those leading the charge, according to a report by credit card company MasterCard.
Canada is ranked third behind Belgium and France when it comes to paying by credit card or digitally.
“The increased adoption of electronic payments has propelled Canada to leapfrog other countries and secure a top spot as nearly cashless,” said Betty K. DeVita, President, MasterCard Canada in a media release. “Canadian’s are comfortable with and prefer using other forms of payment and have been at it for years.”
The report, produced by MasterCard Advisors, tracked how 33 major economies were progressing from cash-based to cashless societies.
The results reveal non-cash payments account for 90 per cent of the total value of consumer payments in Canada.
Of the $63 trillion in total global consumer spending in 2011, 34 per cent ($21 trillion) was done with cash, with cashless payments accounting for 66 per cent $42 trillion.
The United States and Singapore are said to be approaching a “tipping point” to becoming nearly cashless.
Developing economies such as India, Russia and Nigeria are just embarking on their cashless journey.
The report measured a nations’ progress by looking at the share of cash versus non-cash payments for consumers, how this share has shifted in the past five years, and whether conditions exist for cash payments to move to electronic.