Canadians Want To Go Cashless And Prepaid Can Help
For Canadians, the time for cash and paper-based payment methods is over. Canada is moving towards a cashless society. Are you ready?
The move towards a cashless economy should come to no surprise as banks, retailers, and financial institutions have been working tirelessly over the years to move Canadians away from cash dependency and on to contactless payments in order to simplify the payments process and improve the lives of everyday Canadian consumers. According to an analysis by Forex Bonuses, Canada has been deemed the “world’s most embracing country” when it comes to cashless payment methods, thanks to our love of mobile payments, credit cards, and prepaid.
Nearly 66% of Canadian have made fewer cash purchases this year than in the previous year, says a study by the Canadian Prepaid Providers Organization. Tech-savvy Millennials are leading the charge, with only 18% of the demographic choosing cash as their preferred method of payment. 73% of Canadians–up from 59% from 2016–have started using alternative payment tools including digital and mobile payments. The biggest risest star in the alternative payments world is prepaid, which reported the highest adoption at 17%.
While the majority of Canadian have a bank account and still choose to pay using credit or debit cards, 30% of those surveyed want to move away from traditional banking and start using new payment products that offer more convenience, security, ease-of-use, and cost savings. Alternative payments such as prepaid are also powerful tools to promote financial well-being, improve money management and financial literacy, increase financial access to the underbanked, and support a healthier, more sustainable lifestyle.
Why Should Canadian Go Cashless And Switch To Prepaid?
Prepaid Can Improve Financial Management & Reduce Debt
Canadians are drowning in debt. 20% of Canadians in 2019 admitted that they were forced to liquidate some of their assets in order to pay off outstanding debts, according to Financial Planning Standards Council and Credit Canada. Canadians need help with financial management, and prepaid can help.
In our recent post on “10 Reasons To Get A Prepaid Card Today,” we said: Many people are turning to prepaid cards out of a desire to control spending, eliminate debt, and cut down on costs. Money management and frugal financing are not easy; creating–and sticking to–a budget takes hard work and discipline. Sometimes, you need a little help. A prepaid card makes your life easier because you can only spend what you’ve deposited onto the card. Accounts can also be set up to limit/restrict spending as needed. This is a great way to build good financial habits and cut down on debt. Likewise, there is no credit with a prepaid card, so it’s impossible to create debt. This means that there are no interest charges and no balances to pay off.
Real-Time Payments At The Click of A Button
Being paid on time is a big deal, especially for Canadians who are living paycheque to paycheque. 62% of Canadians say they feel more loyal to a company that pays them in real-time.
In the ever-growing Gig Economy, only 17% of gig platforms pay in real-time. 29% of gig workers reported problems with not getting paid for their work, while 27% reported being paid late. Prepaid cards are the perfect tool to handle employee payments–they can help managers, accountants, and worker crews better track and reconcile expenses, offer real-time monitoring, and instantaneous payments. Real-time payments not only makes the lives of employees easier, but it also offers employers a competitive advantage when it comes to the acquisition and retention of workers in competitive markets.
Despite having a highly banked population, there are still large groups of Canadians who are at risk of financial exclusion when paper money and cheques are eliminated, such as the elderly, immigrants, and those living in rural areas. The unbanked and underbanked need a payment tool that can take care of their needs and ensure financial inclusion. This is where prepaid comes in. Prepaid requires no credit or bank account and can be used almost anywhere in the world, including online and to pay bills. More than just a “pay-before card,” prepaid is a payment solution that serves as a platform for Canadian FinTech innovation.
Canada is committed to being a worldwide leader in finance and making sure that its citizens and consumers have the best payment options available to them. Going cashless and investing in alternative payment methods such as prepaid is a strong step toward this future.
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