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2018 Merchant Acceptance Survey

Author

Listed:
  • Kim Huynh
  • Gradon Nicholls
  • Mitchell Nicholson

Abstract

In 2015, the Bank of Canada surveyed merchants and found that cash was nearly universally accepted (Fung, Huynh and Kosse 2017). Since 2015, retail payments in Canada have become increasingly digitalized, as many Canadians have adopted digital payment innovations like contactless cards and Interac e-Transfer. This trend prompted us to ask the question: what share of Canadian merchants still accept cash? The Bank of Canada’s 2018 Merchant Acceptance Survey (MAS) was designed to study the acceptance of payment methods by small and medium-sized businesses (SMBs) in Canada. In this paper, we discuss the survey’s design, methodology and findings, and compare our results with the findings from 2015. Our results show that cash remains accepted by 96 percent of SMBs in Canada and that only 8 percent of SMBs report plans to stop accepting cash within the next five years.

Suggested Citation

  • Kim Huynh & Gradon Nicholls & Mitchell Nicholson, 2019. "2018 Merchant Acceptance Survey," Staff Analytical Notes 2019-31, Bank of Canada.
    • Handle: RePEc:bca:bocsan:19-31
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    References listed on IDEAS

    as
    1. Heng Chen & Rallye Shen, 2017. "The Bank of Canada 2015 Retailer Survey on the Cost of Payment Methods: Calibration for Single-Location Retailers," Technical Reports 109, Bank of Canada.
    2. Christopher Henry & Kim Huynh & Angelika Welte, 2018. "2017 Methods-of-Payment Survey Report," Discussion Papers 18-17, Bank of Canada.
    3. Christopher Henry & Kim Huynh & Gradon Nicholls & Mitchell Nicholson, 2019. "2018 Bitcoin Omnibus Survey: Awareness and Usage," Discussion Papers 2019-10, Bank of Canada.
    4. Walter Engert & Ben Fung & Björn Segendorf, 2019. "A Tale of Two Countries: Cash Demand in Canada and Sweden," Discussion Papers 2019-7, Bank of Canada.
    5. Carlos Arango & Varya Taylor, 2008. "Merchant Acceptance, Costs, and Perceptions of Retail Payments: A Canadian Survey," Discussion Papers 08-12, Bank of Canada.
    6. Kim Huynh & Gradon Nicholls & Oleksandr Shcherbakov, 2019. "Explaining the Interplay Between Merchant Acceptance and Consumer Adoption in Two-Sided Markets for Payment Methods," Staff Working Papers 19-32, Bank of Canada.
    7. Ben Fung & Kim Huynh & Anneke Kosse, 2017. "Acceptance and Use of Payments at the Point of Sale in Canada," Bank of Canada Review, Bank of Canada, vol. 2017(Autumn), pages 14-26.
    8. Anneke Kosse & Heng Chen & Marie-Hélène Felt & Valéry Dongmo Jiongo & Kerry Nield & Angelika Welte, 2017. "The Costs of Point-of-Sale Payments in Canada," Discussion Papers 17-4, Bank of Canada.
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    Cited by:

    1. Angelika Welte & Katrina Talavera & Liang Wang & Joy Wu, 2024. "Résultats de l’enquête de 2023 sur les modes de paiement acceptés par les commerçants : la pandémie de COVID 19 n’a pas fait disparaître l’argent comptant," Discussion Papers 2024-02fr, Bank of Canada.
    2. Felt, Marie-Hélène & Hayashi, Fumiko & Stavins, Joanna & Welte, Angelika, 2023. "Regressive effects of payment card pricing and merchant cost pass-through in the United States and Canada," Journal of Banking & Finance, Elsevier, vol. 154(C).

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    More about this item

    Keywords

    Bank notes; Digital Currencies and Fintech; Econometric and statistical methods;
    All these keywords.

    JEL classification:

    • C8 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior

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