Cash Payments Disappearing in Developed Countries?

For a country as advanced and developed as Canada we would presume that cash payments are rare and that cash as a method of payments is obsolete and with one foot in the grave. But is that really the case? What do you think?

PiP iT Global Blog - Cash Payments Disappearing In Developed Countries?

Despite the growth in alternatives such as debit and credit cards, Canadians still use cash to process more than half of all transactions, the Bank of Canada calculates. Cash may no longer be king for big purchases, but a majority of all transactions in Canada still happen with paper money. Consumers seem to rely on physical money for the smallest purchases, with the median amount of a cash transaction valued at $8.04. Debit and credit card transactions are higher at $28.33 and $43.85, respectively.

Most merchants seem to prefer cash and debit card payments, the report found, as they are less costly to accept than credit cards. Only two-thirds of small- and medium-sized businesses accept debit and credit cards, it said, while nearly all large businesses do.
For some of the smaller and medium companies, transaction costs may be higher than benefits, the report pointed out, so they may decide to not accept cards or only do so for larger purchases.

Even though the Ecommerce numbers are surging year after year due to technology and logistics improvements, cash domination blocks Ecommerce overtaking of offline shopping. Two major factors are involved:

  • Not everyone has a bank account or a credit card; especially not immigrants who lately entered the country
  • Fear of theft or card fraud

PiP iT Solution

To avoid those problems PiP IT offers a solution that helps both merchants and customers to safely execute the sell/ buy through Ecommerce. The customer does not need a bank account, debit/credit card and there is no risk of fraud. The process goes as follows:

  • A customer selects a product as normal on your website.
  • At checkout they are given the option to use ‘PiP iT’ as their payment method. This automatically generates a barcode which is sent to their mobile phone or can be printed out.
  • You then reserve your customer’s order for a set period of time to allow them to call in to any Post Office in the UK, where the barcode is scanned at the counter and the payment is made in cash or by debit card.
  • PiP iT notifies you that payment has been received and you fulfil the order.

For more information regarding the process feel free to reach out.

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