Growth in Prepaid Cards May Quicken Moves to Cashless Society

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Growth in Prepaid Cards May Quicken Moves to Cashless Society

According to the Province, Canada is quickly headings towards becoming a cashless country. In fact, the Bank of Canada recently researched how a central bank digital currency can help with a cashless society as they look to innovate with current cashless trends in mind. With Canadians as the leaders in embracing cashless methods of payments according to forex bonuses, businesses and companies will have to innovate and embrace cashless payments or be left behind.

Many may feel that a cash free Canada is decades away. However trends towards a cashless society are also supported by statistics that indicate two-thirds of Canadians made fewer cash payments than in the previous years. Furthermore, Canadians have started using even more alternative forms of payments like PayPal and mobile payments at the checkout counter. One area that may see a huge rise in the next few years is prepaid cards.

As Canadian move away from traditional banking more Canadians are choosing to have employees deposit funds right into a prepaid card versus a bank account. An example of this method is Uber’s instant pay where drivers can receive earning up to 5 times a day on a prepaid card instead of having to wait for a paycheck or direct deposit. Another advantage to prepaid cards is that they enable consumers, who may not be able to sign up for credit cards because of credit issues or those that may not have a bank account, to use digital-based currency instead of just cash. 

As more companies like PayPal expand their bank-less transactions businesses, the segment of the population that has not been embracing digital currency may find a new reason and a new model that will enable them to get rid of cash and join the millions of Canadians that already rely on cashless payments. We may be only years away from a society where paper-based currency is no longer used.