More than one-third of Canadians using cash, cheques less frequently

New research reveals consumers are increasingly reaching for their digital wallet

TORONTO, June 22 /CNW/ - Canadians are finding themselves frustrated with cash and cheques and are opting to reach for their digital wallet instead, according to a new research study on the future of money.

When it comes to paying and getting paid, cash is no longer king. Canadians are rapidly adopting a digital currency, using a computer or mobile phone to conduct person-to-person transactions like splitting a restaurant bill or sharing costs. In fact, according to the research conducted by Leger Marketing on behalf of PayPal Canada, the number of Canadians who have sent money electronically nearly doubled in the last 12 months increasing from 28 to 50 per cent.

Why are Canadians going digital?

Three-quarters of Canadians indicate that they always want their money at their fingertips and the inconvenience of cash and cheques is leaving many of them frustrated. They're starting to realize that using cash and cheques is not always free or easy, according to the Future of Money study, as many have found themselves incurring banking fees to withdraw money (80 per cent) or needing to write a cheque but unable to find their cheque book (51 per cent).

"We know that people often find themselves inconvenienced and frustrated when they don't have any cash on hand," said Nicky Mezo, PayPal Canada. "Instead of making an extra trip to the bank machine or pulling out a cheque book, Canadians are increasingly doing these transactions digitally to save time, reduce aggravation, and save money."

How are Canadians dealing in digital dollars?

Canadians are increasingly accessing their dollars through a computer or mobile phone, according to the Future of Money study. The majority (62 per cent) of Canadians are transferring money online using their computer - whether it's through an online payment service, like PayPal, or through their bank account - avoiding the costs or hassle associated with locating a bank machine or writing a cheque.

The study also reveals that Canadians are embracing their mobile phone as their digital wallet. Three-in-10 Canadians who use their mobile phone to transfer money say their use has increased over the past 5 years and one-in-five Canadians say, if they could, they would use their mobile phone to pay for everyday purchases from a retailer or to buy their morning coffee or lunch.

More than 4 million Canadians are already using PayPal services for paying and getting paid online, including:

    
    -   PayPal Send Money, which allows Canadians to send money to friends
        and family almost anywhere around the globe. Domestic transactions
        are free when funded from a PayPal balance or bank account.
    -   The PayPal Send Money app, which is free to download and makes it
        easy for Canadians to access their digital wallet on their
        smartphone. Apps are available for iPhone, BlackBerry, and Android
        handsets.
    -   Square Up with PayPal, a Facebook application that helps Canadians,
        who have organized a Facebook event, to split the cost with friends
        and keep track of what is owed.
    

The Future of Money study also reveals other interesting facts that are likely causing Canadians to reach for their digital wallet:

    
    -   Many Canadians can't keep track of their cash with almost
        four-in-10 Canadians admitting that they never seem to have cash on
        hand and three-quarters opening their wallet to find that they didn't
        have any cash.
    -   The majority of Canadians incurring banking fees when either
        withdrawing or transferring money are frustrated by this (82 and
        74 per cent).
    -   More than half of Canadians don't want to have to find a bank machine
        every time they need to pay someone back.
    -   Almost four-in-10 Canadians have lost a cheque that someone gave them
        and almost 50 per cent have forgotten about a cheque they wrote only
        to be surprised when it was cashed.
    -   One-in-four Canadians under the age of 35 say they never use cheques.
    -   Almost 70 per cent of Canadians have had to make a special trip to a
        bank machine to pay someone back and fifty per cent of Canadians have
        been late for a meeting or gathering because they had to stop at a
        bank machine.
    

For more information on PayPal, visit https://www.paypal.ca.

Methodology

A total of 1,551 adult Canadians answered this online survey between May 31, 2010 and June 2, 2010. This method simulates a probability sample which would yield a maximum margin of error of +/-2.5%, 19 times out of 20.

About PayPal

PayPal is the faster, safer way to pay and get paid online. The service allows members to send money without sharing financial information, with the flexibility to pay using their account balances, bank accounts, credit cards or promotional financing. With more than 84 million active accounts in 190 markets and 24 currencies around the world, PayPal enables global ecommerce. PayPal is an eBay company. The company's open payment platform, PayPal X, allows developers to build innovative payment applications on multiple platforms and devices. More information about the company can be found at https://www.paypal.ca.

For further information: Media contact: Nicole Tuschak, Environics Communications for PayPal, [email protected], 416-969-2712; Amy Clark, Environics Communications for PayPal, [email protected], 416-969-2758