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COVID-19 has not killed merchant acceptance of cash: Results from the 2023 Merchant Acceptance Survey
Journal of Digital Banking,
9
(3),
273-286
(2024)
Abstract
In recent years, the rise in digital payments has spurred a discussion in Canada and other countries about the future of cash at the point of sale. To better understand trends in payment methods accepted by Canadian businesses, including cash acceptance and the impact of innovations such as mobile payments, the Bank of Canada conducts the Merchant Acceptance Survey, a survey of small and medium-sized businesses. This report finds that 96 per cent of these businesses in Canada accepted cash in 2023. Acceptance of debit and credit cards has increased since 2021 to 89 per cent, and acceptance of digital payments has increased as well. The vast majority of merchants (92 per cent), however, have no plans to go cashless in the future. This paper concludes that cash and digital payments continue to coexist at the point of sale, and Canada is far from being a cashless society.
Keywords: Bank notes; digital currencies and FinTech; econometric and statistical methods
The full article is available to subscribers to the journal.
Author's Biography
Angelika Welte is a researcher in the currency economic research and analysis division at the Bank of Canada. She has more than 10 years of experience in economic research on the adoption, use and acceptance of cash, card payments and (digital) payment innovations. She focuses on leading a high-performing team to achieve insights for evidence-based decision making. Her academic credentials include a Master of Arts in Economics (Carleton University) and a PhD in Mathematics (University of Ottawa).
Katrina Talavera was an economist in the currency economic research and analysis division at the Bank of Canada before joining and is an economic specialist at the Ontario Ministry of Finance. She holds a Master of Arts in Economics (University of Toronto) and an Honours Bachelor of Science in Mathematics and Statistics (McMaster University).
Liang Wang was an FSS senior analyst in currency economic research and analysis division at the Bank of Canada. With a background in experimental economics, Ms Wang currently focuses on economic payment questionnaire, project cooperation and survey qualitative analysis. She has prior experience in online social-economic research. She holds a PhD in Economics (Concordia University).
Joy Wu is an FSS analyst in the currency economic research and analysis division at the Bank of Canada. She joined the Bank after obtaining her Honours Bachelor of Science in Statistics (University of Toronto) and is currently pursuing her Master of Science in Analytics (Georgia Institute of Technology).
