TORONTO -- It’s been said that cash is king, but how we are spending money is changing as many consumers are avoiding handling cash and have stopped using ATMs.
Due to COVID-19 many people have not been dining out, taking trips or shopping in malls and over half of Canadians in a new survey said they are spending less.
The Canadian Payments Trend Survey by Payments Canada said more people are now using their credit cards, debit cards and sending e-transfers more often and the group expects the trend to continue.
Fifty-eight per cent of Canadians say they are spending less overall and 53 per cent said they're using less cash than pre-COVID.
“These are trends that were there and it's just that the pandemic has accelerated them," said Cyrielle Chiron, head of research at Payments Canada.
The survey found that 42 per cent are uncomfortable handling cash and 67 per cent said they are using ATMs less.
Chiron said Canadians prefer to use contactless payment methods and have embraced tap technology.
Thirty-three per cent are using credit cards more, 20 per cent are using their debit cards more often and there has been a 25 per cent increase in the use of E-transfers.
“One of the trends we are seeing is the increase of use of electronic payments and the decline of cash and cheques. Why? It’s because people basically don't want to touch anything," said Chiron.
While many people are not using cash as often and more businesses are not accepting it, there are about one million Canadians who are considered “unbanked or underbanked” meaning they don’t have debit or credit cards and they need to rely on cash for their transactions.
Also, the study found while Canadians are generally spending less overall, more than half admit they are spending more on food, buying extra items at the grocery store and using food delivery services more often.
