Canadian Cash Demand, Use and Access Remain Resilient
Aug 7, 2024
A recent Bank of Canada report shows the share of cash transactions remains steady at 20 percent and, while fewer ATM withdrawals are being made, the amounts withdrawn and held by people are rising.
The 2023 Methods of Payment Survey offers the most recent picture of Canadian payment choices, with a focus on cash use. It shows that average cash on hand rose from $106 to $140 between 2017 and 2023, and the average ATM withdrawal is up from $140 to $153. The percentage of people who had made a withdrawal in the past week also rose from 27 percent to 30 percent, although average withdrawals per month were down from 2.3 to 1.9, less than half the high of 4.4 recorded in 2009.
Between 2020 and 2023, the share of cash by transaction volume has remained steady at around 20 percent. By value, it accounts for 11 percent of purchases, down slightly from 12.5 percent in 2022 but up on nine percent in 2020.
Canadians also continue to see a future with cash, with the percentage who say they have no plans to go cashless steady at around 80 percent between 2019 and 2023 (after an early-pandemic low of 74 percent in April 2020). Other sentiments also have fairly consistent figures, with around 13 percent reporting they are cashless but still carrying cash, and five percent reporting they are cashless and carrying no cash. Five percent envisage being cashless within five years, and two percent expect to be cashless in more than five years.
Access to bank branches and [ATMs] facilitates robust consumer use and merchant acceptance of cash… Cash remains resilient despite the negative shock of the COVID-19 pandemic on its potential use at in-person venues.