CANADA
The New Shape of Local Commerce in Canada
Buyers and Sellers Find Ways to Connect When They Can’t Get Close
What a difference a year makes. As we’ve become more distanced in our daily lives, we’ve become more digital to stay connected. New data from payments company Square reveals the new ways Canadians are buying from local businesses one year into the pandemic.
COMMERCE AT A DISTANCE
Many Canadians Move Online
Amid social distancing guidelines, local businesses across Canada moved fast to sell goods and services in all kinds of ways online – whether through an online store, in-app, by invoice or over the phone. In fact, two out of three local businesses in Canada are now selling online. And Canadian businesses are leading in the adoption of online selling compared to other countries around the world.
Percentage of Canadian Businesses Selling Online
Percentage of Businesses Selling Online
By Country
Percentage of Businesses Selling Online
By Province
By City
85 %
of businesses are selling online in Saskatoon.
most online selling
47 %
of businesses are selling online in Surrey.
least online selling
BILLS AND COINS
Canadians Let Go of Cash
We all know Canadians are using bills and coins less often to pay. We see that under plexiglass partitions across the country Canadians' use of cash has dropped by almost half from this time last year.
22 %
of local business purchases are paid with cash today, compared with 39% pre-COVID.
Percentage of Cash Payments at Businesses
By Province
By City
31 %
of purchases are paid with cash in Victoria.
HOLDING ON TO CASH
11 %
of purchases are paid with cash in Saskatoon.
LETTING GO OF CASH
We estimate the shift away from using cash over the past year in Canada would have taken more than four years without the pandemic.”
–Felipe Chacon
Economist at Square
COUNTERTOPS GO CASHLESS
More Businesses No Longer Accept Cash
It’s not only Canadian consumers who are letting go of bills and coins – more businesses are also eliminating cash. A look at purchases across the country shows Canadians are now 3.5 times more likely to visit a local business that is cashless. Hamilton has the most businesses that are cashless. And in Surrey, almost all businesses continue to accept cash.
1 in 5
local businesses no longer accept cash, compared to 1 in 20 this time last year.
Percentage of Cashless Businesses
By City
42 %
HAMILTON, ON
Most cashless businesses
12 %
SURREY, BC
Least cashless businesses
FINAL THOUGHTS
Change (Not the Bills & Coins Kind) Is the Only Constant
We’re all realizing just how important it is to come together. Canadian business owners are continuing to explore new ways to meet customers where and how they’re most comfortable, whether in-store, at reception, online, curbside, at home and everywhere in between.
We’re here for you. For additional details on the new shape of local commerce in Canada, connect with the Square team at press@squareup.com.
Read our methodology >Methodology
The data for this analysis includes millions of transactions from January 1, 2020, through February 28, 2021, from Square sellers across Canada that have been able to stay mostly active for the duration of the pandemic.
For the purposes of this report, Square qualifies any business accepting more than 95% of their sales via cashless means (in-person credit or debit card payments, online payments, contactless payments) as a cashless business.