In recent years, there has been a significant shift towards cashless transactions in Canada. With the rise of contactless payments and online shopping, more and more consumers are opting to use credit and debit cards instead of cash. As a result, retailers that do not accept these forms of payment risk losing customers.
Why are Canadian consumers turning away from cash-only retailers?
They crave convenience.
Using credit or debit cards allows consumers to make purchases quickly and easily, without the need to carry cash. This is particularly important for online shopping, where credit and debit cards are the primary payment method. Consumers can quickly enter their card details and complete their purchases, without the need to enter physical stores.
They value security.
Carrying cash can be risky, particularly in crowded areas or at night. Using a credit or debit card provides an added layer of security. These forms of payment are protected by fraud protection measures. In addition, consumers can quickly and easily cancel a lost or stolen card, providing further peace of mind.
“Purchase protection is a common credit card benefit that allows consumers to file a claim with their issuer to receive replacement, repair or reimbursement for any eligible stolen or damaged items,” explains Stella Shon on ValuePenguin.com, “Major credit card networks, such as Mastercard and Visa, have different policies for purchase protection.”
They want to be able to spend more.
Research has shown that consumers tend to spend more when using credit or debit cards than when using cash. This is because using cash provides a more tangible sense of the amount being spent. Using a card can create a sense of detachment from the actual amount being spent. As a result, consumers may be more likely to make larger purchases or add additional items to their carts when using credit or debit cards.
They want rewards and incentives.
Credit and debit cards often come with rewards and incentives that encourage consumers to use them for purchases. For example, cash back offers, reward points and airline miles are all popular incentives offered by credit card issuers. Consumers who use their credit or debit cards for purchases can earn these rewards and use them to offset the cost of future purchases. As a result, retailers that do not accept credit or debit cards risk losing customers who are looking to earn rewards or take advantage of incentives.
On RateHub.ca, Graham Christian reveals that an August 2021 survey of 1527 Canadians found that credit users nationwide seemed to vastly prefer rewards credit cards to other types available. “Nearly eight-in-ten (78%) saying they most frequently use a credit card that offers some kind of reward, and 61% of those who researched new credit cards in the last year specifically interested in unique rewards and benefits,” he informs.
Do you accept credit and debit cards at your place of business?
At Canadian POS, we believe there is no easier way to do so than with the revolutionary Poynt Smart Terminal. This Android-based terminal has a suite of business management tools that allow you to keep track of all your orders, reports and inventory in one place. For more information, please don’t hesitate to call us at 1-877-748-2884 or send us a message on our Contact Us page!