Cash remains the most accepted payment among small- and medium-sized Canadian businesses, despite the prevalence of digital options, according to a report from the central bank.
A bank survey found that cash was accepted by 100 percent of Quebec businesses and 99 percent of Atlantic Canada businesses in 2023. Overall, cash acceptance was 95 percent or higher across Canada, stated the report, which was first obtained by Blacklock’s Reporter.
The high level of cash acceptance at Canadian businesses is unlikely to change anytime soon, the report said.
“The vast majority of merchants — 92 percent … have no plans to go cashless in the future,” the authors wrote. “Cash and digital payments continue to coexist at the point of sale, and Canada is far from being a cashless society.”
While not as popular a payment as cash, more than half of retailers said they still accept cheques. More medium-sized than small businesses reported accepting cheques, at 59 percent and 54 percent respectively, the survey found. The rate was highest on the Prairies at 69 percent.
Merchant acceptance of debit and credit cards sat at 89 percent for both methods of payment while businesses who reported accepting cash, credit, and debit came in at 84 percent.
The share of businesses accepting e-transfers came in at 63 percent with merchants polled in the Atlantic region having the highest acceptance rate at 70 percent.
Acceptance of mobile payment apps is also becoming more popular with merchants, but is not as widely adopted as email money transfers. Just under half, 49 percent of businesses, allow customers to pay via app, the report found.
“Merchants will continue to accept the payment methods that consumers prefer to use,” the authors wrote, adding that cash payments are unlikely to be displaced anytime soon.
