By Troy Media
Cash may have once been king but a report released on Wednesday shows that digital payments are taking over.
The annual Payments Pulse Survey: Small Business Edition from Payments Canada revealed that nearly 80 per cent of small businesses surveyed conduct fewer than 25 per cent of their transactions in cash compared to 65 per cent in 2018.
But 71 per cent small businesses surveyed say they still feel an obligation to accept cash as a method of payment and 61 per cent consider accepting cash as a key to their success.
“Small businesses are an integral part of the Canadian economy and providing convenient payment options at the point-of-sale is key to their success,” said Tracey Black, executive director of modernization at Payments Canada, in a statement.
“The modernization of Canada’s payments systems is setting the stage for new and enhanced payment options, and creating a platform for innovation that will allow our member financial institutions and payment service providers to offer their customers enhanced, data-rich payment options and experiences.”
The report also found:
- Respondents say the most efficient forms of payment methods to process are non-cash transactions, including e-transfers (27 per cent), cheque (17 per cent), credit card (19 per cent), automated funds transfer/direct deposit (14 per cent) and debit (six per cent).
- 63 per cent of respondents say their business would benefit from sending and receiving more data/information with an electronic payment, and 64 per cent say they would likely use digital payments (give up cheques and cash) if they could send and receive more data/information with a payment.
- 68 per cent of small businesses feel they could be encouraged to adopt digital payments within their business, particularly if they have a clear return on investment (36 per cent). Two-in-ten also feel that having some personal support or coaching (22 per cent), grants/funding to pay for the technology (21 per cent) and the provision of educational resources (19 per cent) would encourage them to adopt digital payments.