Canadians’ use of cash has been on the decline for years as e-commerce and tap-and-go payments displaced legal tender., with health concerns about contaminated cash adding to long-standing technological pressures.
Early indications suggest two trends are driving the move away from cash since the mid-March onset of the coronavirus crisis. The first is a surge in e-commerce as consumers turn to virtual retailers. Equally as significant is a sharp rise in electronic transfers. Interac Corp. says the number of first-time e-transfer users has risen by 62 per cent since mid-March.Tracey Black, president and chief executive officer of Payment Canada, said she believes those behavioural shifts will endure after the lockdowns. And she said that central banks are likely to accelerate plans to introduce digital currencies that could further displace cash.
But Ms. Black agrees that cash will remain in the picture, saying it is sometimes simply the most convenient option. “It’s really fast to hand someone a twenty.”