“Cash is king."
For millennials and generations before them, this phrase reminds them of a time before digital wallets, online payments and plastic payment methods. Now you might think the notion is obsolete given the technology in our pockets.
But, according to a recent Bank of Canada (BoC) report surveying payment methods of Canadians, it appears cash still has a place in many wallets.
In 2024, the mean value of cash Canadians had on hand increased from $140 in 2023 to $156 in 2024. The report also noted that withdrawals from automated banking machines (ABMs) and bank branches were also on the rise. What’s interesting, however, is that younger generations — the ones growing up with the greatest access to technology — have the most cash on hand.
Who is holding and using cash the most?
The BoC found that Canadians aged 18-34 carried the most amount of cash on hand ($204), more than other generations. Those aged 35-54 held an average of $134, and those aged 55+ held an average of $144. The youngest demographic also had the highest average cash value ABM withdrawals at $202.
That said, the oldest demographic had the highest rate of survey respondents who stated they currently had cash on hand, sitting at 86.8%.
Looking at cash usage by income, Canadians making less than $45,000 a year held an average of $140 of cash. Those earning between $45,000 and $85,000 held an average of $166 and those making $85,000+ held an average of $163. Low-income Canadians also had the lowest average ABM withdrawal amounts at $143. The other income brackets withdrew an average amount over $180.
In terms of usage, Canadians aged 55+ had the highest percentage of transactions made in cash at 26.3% — other age groups used cash less than 20% of the time. Additionally, the more money Canadians made, the less transactions they completed with cash. Canadians earning over $85,000 a year only used cash 16.5% of the time, where those making less than $45,000 used cash in over 30% of their transactions.
Mobile purchases are also on the rise — is this safe?
The Bank of Canada also found that mobile payments are on the rise. Based on 2024’s data, more than a third of Canadians paid with their mobile device in the past year and nearly 5% of purchases were made using mobile devices. However, the BoC notes that their survey may “underestimate the true share of purchases made by mobile…” as some contactless credit card payments (a separate category) can include mobile payments.
As mobile payments continue to increase, it’s fair to wonder how safe they are. Can’t someone easily find your credit/banking information if you lose your phone? Not necessarily.
National Bank’s Georges Gay notes that mobile payments are secure given that they don’t actually store any banking information. “The card is represented with a token on your phone. These tokens can only be used for one thing, and they’re encrypted,” he told NBC.
“Even if they had access to this token, they wouldn’t be able to do anything with it. These tokens are issued by Interac or by credit card companies, and they’re the only ones who can decode them."
Is it better to store cash digitally or physically?
The increase in cash usage, as well as the rise of digital payment and storage options for Canadian’s money brings up an important question: Is it better to store my money physically or digitally?
There’s multiple aspects to this inquiry. For one, does carrying cash help you spend less? Some Redditors on the r/personalfinance subreddit debated the question, but user “TaskForceCasuality” had a salient point. “Ultimately, it’s a matter of personal discipline, and that is a very variable metric. The 1st Law of Finance is you must spend less than you make. Everyone will have different pathways to achieving that,” they wrote.
The other side of this question has to do with safety. Is it safer to hold your cash physically rather than in a digital account? A recent survey from Payments Canada suggests that using cash instead of digital options could set you up for a fraud hit.
After surveying 1,500 Canadians between February and March, the organization found that Canadians had almost three times the amount of fraudulent experiences using cash versus using a credit card — 22.4 times over a six-month period. Other payment methods were just above, or slightly below an average of 10 times over six months.
Tips to help you store your money safely
Regardless of how you store your money, you need to take care of it. While fraud happens more often with cash transactions, digital fraud is a prevalent crime. Here are some money storage tips from Royal Bank to help you keep your funds safe.
- Set up fraud alerts on your account: An easy way to catch fraud before it happens is to enable push notifications, text messages or emails about unusual activity on your account. This allows you to act quickly if something goes awry.
- Check in on your accounts often: Knowing how your accounts should look will help you spot indicators that something is wrong with your cash. Check in on your accounts daily or at least weekly.
- Reach out if something seems off: If you have any suspicions about fraudulent activity on your account, trust your gut and get in touch with your bank as soon as possible. Waiting could cost you.
Though the debate about cash versus digital accounts will likely continue for the coming years, Canadians can still take measures to protect their assets. Regardless of how you like to store your hard-earned cash, take strategic steps to ensure it stays in your account — or your wallet.
Sources
1. Bank of Canada: 2024 Methods-of-Payment Survey Report: Cash in an Erao f Alternatives (Aug 14, 2025)
2. National Bank: Why you should use mobile payments on a daily basis (May 6, 2019)
3. Payments Canada: Canadians nearly three times more likely to encounter payment fraud using cash versus credit cards (Aug 6, 2025)
4. RBC: 3 Simple Ways to Help Keep Your Money Safe, by Diane Amato (Jul 25, 2023)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.