The article argues that the not-for-profit Interac, run by Canada’s major banks, is a major innovation that’s unknown in many countries, including the U.S., that makes the elimination of cash both desirable and affordable.
Yet is that a major concern for consumers? Recent research suggests many people are already effectively living in a cashless world, choosing credit cards, bank cards and online shopping over the old dollar bill.
And, beyond Wired’s exultation of Interac, Canada has been undertaking a variety of initiatives that are bringing us closer to a cashless society.
Here’s a breakdown of the seven signs Canada is moving to a cashless society. (Text version below slideshow.)
Share your vote on Facebook so your friends can take this poll
Loading Slideshow
7. Canada is tops for paying by card
Nowhere do people pay with plastic more than in Canada. An <a href="http://gbm.rbs.com/docs/gbm/insight/gts/perspectives/WPR_2011.pdf" target="_hplink">RBS report from 2011</a> found that paying by plastic -- credit, debit and bank cards -- amounts to 40 per cent of transactions, on average, across world economies. But the rate in Canada was 68 per cent, making the country the world leader in plastic payment.
6. We're getting rid of the penny
Observers in the U.S. and elsewhere <a href="http://www.huffingtonpost.ca/2012/03/30/canadian-penny-killed-us-penny-opponents_n_1391831.html" target="_hplink">declared Canada a trailblazer</a> when the Harper government announced in its budget this year that it's <a href="http://www.huffingtonpost.ca/2012/03/29/canadian-penny-killed_n_1389458.html" target="_hplink">eliminating the penny</a>. Canada isn't the first to do this -- Australia got rid of its penny decades ago, for instance, and various currencies around the world often eliminate their lowest denominations due to inflation. But the decision to kill the copper coin is nonetheless a sign that physical currency is less important to the economy than it used to be -- and central banks are beginning to notice the costs involved with it.
Photo: Jeff Golby wears an oversized model of a pennyas he collects donations of pennies for local charities during Canada Day festivities in Vancouver, B.C., on Sunday July 1, 2012. (THE CANADIAN PRESS/Darryl Dyck)
5. Our dollar bills are going high-tech
Even our paper money is turning plastic. The Bank of Canada <a href="http://www.huffingtonpost.ca/2011/11/14/new-canadian-100-bill_n_1091884.html" target="_hplink">unveiled Canada's first plastic bill -- a new $100 -- last fall</a>. The $50 bill <a href="http://www.huffingtonpost.ca/2012/03/26/canada-new-50-bill-plastic-money_n_1380695.html" target="_hplink">went plastic this past March</a>, and the $20 <a href="http://www.huffingtonpost.ca/2012/05/02/new-20-bill-plastic_n_1471122.html" target="_hplink">followed quickly in May</a>. The plastic bills are meant to be more durable and include a variety of new security features, including a translucent strip. But they've already been through a few controversies: One involved the discovery that <a href="http://www.huffingtonpost.ca/2012/07/11/new-polymer-bills-heat_n_1666742.html" target="_hplink">the new plastic bills may melt in heat</a>; another involved a controversial decision by the BoC to <a href="http://www.huffingtonpost.ca/2012/08/20/asian-100-bill-carney_n_1810925.html" target="_hplink">eliminate an "Asian-looking" person from the original design of the $100 bill</a>.
Photo: Minister of Finance Jim Flaherty and Bank of Canada Governor Mark Carney show off the new $20 bank bill during a ceremony in Ottawa, ON Wednesday May 2, 2012. (THE CANADIAN PRESS/Adrian Wyld)
4. The Mint is going digital
Perhaps the elimination of the penny made the Royal Canadian Mint realize that the age of physical coins may be coming to an end. The agency responsible for Canada's coins <a href="http://www.huffingtonpost.ca/2012/04/12/mintchip-digital-penny-royal-canadian-min_n_1419813.html" target="_hplink">launched a new project this spring</a>, called "MintChip," in which it's researching the creation of a "digital coin" shoppers could use for transactions under $10. On its face, the idea is similar to BitCoin, the virtual currency, but when a national mint develops something like this, it's a clear sign we're into a new era when it comes to money.
Photo: The Canadian Press
3. Canadians are ready to go cashless (apparently)
A study carried out by Leger Marketing for PayPal earlier this year found that <a href="http://www.newswire.ca/en/story/991907/more-than-70-per-cent-of-canadians-ready-to-go-cashless" target="_hplink">71 per cent of Canadians are comfortable with never having to use cash to make purchases</a>, up a stunning 44 percentage points from 2011, when only 27 per cent of Canadians said the same. We're going to go out on a limb and suggest this survey could be somewhat unreliable, but another survey, carried out by RBC this spring, found that <a href="http://www.rbc.com/newsroom/2012/0313-poll-cashless.html" target="_hplink">three-quarters of women and two-thirds of men typically carry less than $50 in their wallet</a> and rely on electronic transactions for purchases.
Photo: The Canadian Press
2. Interac
As <em>Wired</em> <a href="http://www.wired.com/business/2012/08/canada-will-beat-us-to-cashless-economy/" target="_hplink">points out in this gushing article</a>, Canada's Interac system is a world-leading digital currency system. Nothing like it exists in the U.S., where you can pay by debit card at the cash register or pay user fees at a bank machine. While other countries have proprietary trading systems owned by banks, forcing withdrawal fees on customers and costs on retailers, the not-for-profit Interac costs so little it overtook cash as the preferred method of payment for Canadians all the way back in 2000.
Photo: The Canadian Press
1. Interac for the mobile era
The Canadian Bankers association is <a href="http://www.huffingtonpost.ca/2012/05/14/mobile-payment-canada-banks_n_1515720.html" target="_hplink">working on a unified, standardized system for smartphone payments in Canada</a> -- something that could well evolve into an "Interac for the smartphone age." Experts say that before smartphone payment can become standard, the phones themselves have to be equipped with Near Field Communication which allows phones to be swiped near readers to complete a transaction. Analysts say that technology is only a few years off.
Photo: The Canadian Press
7. Canada is tops for paying by card
Nowhere do people pay with plastic more than in Canada. An RBS report from 2011 found that paying by plastic -- credit, debit and bank cards -- amounts to 40 per cent of transactions, on average, across world economies. But the rate in Canada was 68 per cent, making the country the world leader in plastic payment.
6. We’re getting rid of the penny
Observers in the U.S. and elsewhere declared Canada a trailblazer when the Harper government announced in its budget this year that it’s eliminating the penny. Canada isn’t the first to do this -- Australia got rid of its penny decades ago, for instance, and various currencies around the world often eliminate their lowest denominations due to inflation. But the decision to kill the copper coin is nonetheless a sign that physical currency is less important to the economy than it used to be -- and central banks are beginning to notice the costs involved with it.
4. The Mint is going digital
Perhaps the elimination of the penny made the Royal Canadian Mint realize that the age of physical coins may be coming to an end. The agency responsible for Canada’s coins launched a new project this spring, called “MintChip,” in which it’s researching the creation of a “digital coin” shoppers could use for transactions under $10. On its face, the idea is similar to BitCoin, the virtual currency, but when a national mint develops something like this, it’s a clear sign we’re into a new era when it comes to money.
2. Interac
As Wiredpoints out in this gushing article, Canada’s Interac system is a world-leading digital currency system. Nothing like it exists in the U.S., where you can pay by debit card at the cash register or pay user fees at a bank machine. While other countries have proprietary trading systems owned by banks, forcing withdrawal fees on customers and costs on retailers, the not-for-profit Interac costs so little it overtook cash as the preferred method of payment for Canadians all the way back in 2000.
1. Interac for the mobile era
The Canadian Bankers association is working on a unified, standardized system for smartphone payments in Canada -- something that could well evolve into an “Interac for the smartphone age.” Experts say that before smartphone payment can become standard, the phones themselves have to be equipped with Near Field Communication which allows phones to be swiped near readers to complete a transaction. Analysts say that technology is only a few years off.
Also on HuffPost:
Loading Slideshow
Bank of Montreal Dollar - 1825
Until the mid-19th century, Canada's future provinces used the "Canadian pound." Bit by bit, various jurisdictions began to switch to a metric system, and with it came the concept of the Canadian dollar. This Bank of Montreal-issued dollar bill is among the first bills called a dollar to have been printed.
Bank of Montreal Dollar - 1859
Various banks printed their own currency until eventually the Bank of Montreal was charged with being the official issuer of the Canadian dollar, a practice that stayed in place until the Bank of Canada was created in the 1930s.
Bank of Toronto Dollar - 1859
The Bank of Toronto (today known as TD Bank) was among many banks that issued Canadian dollars in the second half of the 19th century.
Ontario Bank Dollar - 1861
Image courtesy of the Bank of Canada.
Province of Canada Dollar - 1866
The province of Canada comprised Ontario and Quebec and existed from 1841 to 1867. It issued its own currency.
Image courtesy of Bank of Canada.
Dominion of Canada Dollar - 1870
With confederation in 1867, the first truly national Canadian dollar came into being. Image courtesy of the Bank of Canada.
Dominion of Canada Dollar - 1898
Image courtesy of the Bank of Canada.
Dominion of Canada Dollar - 1911
Image courtesy of the Bank of Canada.
Dominion of Canada Dollar - 1917
Image courtesy of the Bank of Canada.
Dominion of Canada Dollar - 1923
Image courtesy of the Bank of Canada.
Bank of Canada Dollar - 1935
The Bank of Canada took over the issuance of currency from the Bank of Montreal when it was created in the 1930s.
Image courtesy of the Bank of Canada.
Bank of Canada Dollar - 1937
Image courtesy of the Bank of Canada.
Canada Dollar - 1954
The 1954 dollar was the first to feature Queen Elizabeth II and the first to simply say "Canada" on it, rather than featuring the name of a bank, province or referring to the country as a "dominion."
Centennial Dollar - 1967
Image courtesy of the Bank of Canada.
Canada Dollar - 1973
This was the last paper dollar issued in Canada. It was in circulation until 1987, when the loonie replaced it. Image courtesy of the Bank of Canada.
The Loonie - 1987
The loonie replaced the one-dollar bill in Canada in 1987. Image: CP
Canada 125 Loonie - 1992
The Mint issued a special edition of the loonie in 1992 to commemorate the country's 125th birthday.
Vancouver Olympics Loonie - 2010
An Inuit inukshuk graced the tail of this loonie issued in 2010 to coincide with the 2010 Winter Games in Vancouver.
The Loonie - Anniversary Special - 2012
The Royal Canadian Mint issued a special-edition version of the loonie in 2012 to commemorate the coin's 25th anniversary. Image: Royal Canadian Mint.
Loading Slideshow
The New $5 Bill
Source: <a href="http://www.flickr.com/photos/bankofcanada/8693039417/sizes/c/in/photostream/" target="_blank">Bank Of Canada, Flickr</a>
The New $5 Bill
From <a href="http://www.flickr.com/photos/bankofcanada/8694157272/in/photostream" target="_blank">Bank Of Canada, Flickr</a>: "Robotics innovation is Canada’s ongoing contribution to the international space program and demonstrates our commitment to space exploration. The Canadian-built Mobile Servicing System is the sophisticated robotics suite that helped to assemble the International Space Station in orbit. This system consists of Canadarm2, Dextre and the Mobile Base.
On board the space station—a permanent orbiting research laboratory—international partners conduct scientific experiments, many of which result in an enhanced quality of life on earth. Canada’s contribution to the space program evokes pride and sparks the imagination and curiosity of our future leaders in science and technology."
The New $10 Bill
Source: <a href="http://www.flickr.com/photos/bankofcanada/8693039429/sizes/c/in/photostream/" target="_blank">Bank Of Canada, Flickr</a>
The New $10 Bill
From <a href="http://www.flickr.com/photos/bankofcanada/8693039423/in/photostream" target="_blank">Bank Of Canada, Flickr</a>: "The expansion of the railway in the 1880s was hailed as a remarkable feat of engineering for a young country with a varied and often treacherous terrain. At the time, the railway was the longest ever built, and its completion demonstrated Canada’s pioneering spirit by linking our eastern and western frontiers, connecting people, and facilitating the exchange of goods.
Today, The Canadian train, winding its way through the Rockies showcases Canada’s natural beauty and symbolizes what we accomplished as a young nation."
The New $5 And $10 Bills
Bank of Canada governor Mark Carney unveils the new polymer $5 and $10 bank notes during a press conference at the Bank of Canada in Ottawa on Tuesday, April 30, 2013.
The New $5 And $10 Bills
Finance Minister Jim Flaherty unveils the new polymer $5 and $10 bank notes during a press conference at the Bank of Canada in Ottawa on Tuesday, April 30, 2013.
The New $10 Bill
A new polymer $10 bank note is displayed during a press conference at the Bank of Canada in Ottawa on Tuesday, April 30, 2013.
Astronaut Chris Hadfield Displays The New $5 Bill
Astronaut Chris Hadfield poses for a photo with a new polymer $5 bank note on Tuesday, April 30, 2013.
Twitter reaction to plastic money
Twitter reaction to plastic money
Twitter reaction to plastic money
Twitter reaction to plastic money
Twitter reaction to plastic money
Joel Klebanoff
New $5 and $10 bills are being launched. All of our bills are going plastic. Why does that bring the film The Graduate to my mind?
Andrew Coyne
Even that would be better. @InklessPW: Wells designs new bills. What'll we put on the 5? Oscar Peterson. The 10? Peterson. 20? Glenn Gould
Cory S.
Wait so there's no more quote from the Hockey Sweater on the new $5 bills? #manifencours
Tabatha Southey
New bills should be 5 pin bowling for the $5, a Robertson screwdriver for the $10, a Canadian flag, draped over a picnic bench on the backs.
LauraBeaulneStuebing
Theory about the new $5 and $10 bills: They're ugly enough that we don't want to keep them in our wallets.
Paul Wells
Paul Wells designs the new bills. "What'll we put on the 5?" "Oscar Peterson." "And on the 10?" "Oscar Peterson." "20?" "Glenn Gould."
Wesley Fok
Was expecting the new $5/$10 bills to literally have pictures of poop on them, based on the outcry. Surprise: they look like money!
Patrick Meehan
Q: You're the federal government, what do you put on the new 5$ and 10$ bills? A: Things you've cut funding to. http://t.co/jqT3BLmENc
Jason Rehel
Everyone is pretty damn hung up on the AESTHETICS of the new $5 and $10 bills in Canada. Me? I'd like money that WORKS in vending machines
Brittlestar
@Cmdr_Hadfield Dude, with all the stuff you’ve had up there (guitars, Easter eggs, new $5 bills), how BIG was your suitcase?
The New $20 Bill
Hand holding up the new polymer Canadian $20.00 bill.
The New $20 Bill
Some new polymer twenty dollar bills, which is the most widely used bank note in the country, are pictured at Montreal on November 19, 2012.
The New $20 Bill
The Bank of Canada introduced the plastic see-through $20 bill on May 2, 2012.
The New $50 Bill
Bank of Canada Governor Mark Carney holds a new $50 bill while standing in front of the Canadian Coast guard ship Amundsen Monday, March 26, 2012 in Quebec City. The Amundsen is displayed on the back of the new bank note made of polymer.
The New $100 Bill
Bank of Canada Mark Carney shows off the bank's new circulating $100 bill, Canada's first polymer bank note, in Toronto on Monday Nov. 14, 2011.
The New $100 Bill
The $100 bill was the first of Canada's paper denominations to go plastic and see-through.
Australia's polymer note
An Australian 100 dollar polymer note is displayed above various international currencies. AFP PHOTO / Torsten BLACKWOOD
Australia's polymer note
AFP PHOTO / Torsten BLACKWOOD
Mexico's polymer note
A Mexican pesos note made out of polymer material. Alfredo Estrella/AFP/Getty Images
Mexico's polymer note
Mexico City, MEXICO: A sample of the new 50 Mexican pesos' note made out of polymer material to hinder its forgery, 14 November, 2004 in Mexico City. AFP PHOTO/Alfredo ESTRELLA (Photo credit should read ALFREDO ESTRELLA/AFP/Getty Images)
A recent article in Wired magazine spotlighting Canada’s Interac system declares that Canada will beat the United States to becoming a cashless society.
The article argues that the not-for-profit...
A recent article in Wired magazine spotlighting Canada’s Interac system declares that Canada will beat the United States to becoming a cashless society.
The article argues that the not-for-profit...
Having tons of money won't make you any happier, but apparently having none at all just might do the trick. Heidemarie Schwermer, a 69-year-old German...
Credit card companies are finding ways around new regulations that restrict how they can market their cards to college students. A number of lenders are...
Could you go a week without spending cash? Forty-three percent of Americans have, according to a Rasmussen survey released on Wednesday. The convenience of using...
Pocket money is a great way of introducing children to learn financial literacy from an early age. Giving children the opportunity to earn more money through additional chores will help children begin to understand the financial benefits that come from hard work. Furthermore, it is imperative that we also teach our children about their role as a consumer.
The Starbucks App links your phone to your pre-paid Starbucks card to process payments using a QR code on the screen, which can be scanned by a small reader connected to the cash register. The experience was, in a word, engaging.
I for one am against a cashless society. The banks will have the entire exchange of currency within their computers, and they will be capitalizing on it like they normally do. Earning money then paying fees from the money you have left over to buy stuff is stupid. The state have their taxes, and the banks have their own. They can also shut off your card or chip or whatever they setup...then what; you starve? It's almost biblical, and that is the scary part.
"They shall cast their silver in the streets, and their gold shall be removed: their silver and their gold shall not be able to deliver them in the day of the wrath of the LORD: they shall not satisfy their souls, neither fill their bowels: because it is the stumbling block of their iniquity." Ezekiel 7:19
Emile_Stevens: I for one am against a cashless society. The banks
What a ridiculous poll question HuffPo. So I have to pretend to be a marijuana smoker to say no?
Banks love anything but cash. They can nickel and dime us to death on everything but.
cheeseplease: What a ridiculous poll question HuffPo. So I have to
I totally agree. The question is flippant. This is a corporate money grab. The banks are making record profits this past quarter almost entirely based on new service fees. I deal in cash when I can. I own one credit card and NEVER pay a fee on it. I avoid banking service/transaction fees almost entirely by watching my minimum accounts. I believe in cash as a proper and responsible way to manage money. If I don't have it I don't spend it. And I don't by weed as your poll question implies.
Mark_D_Webster: I totally agree. The question is flippant. This is a
Good to see the HP isn't above running inflammatory polls to get a rise out of their readers. Only financially responsible individuals would be offended by the dumb wording of this poll. Is it indicative of the HP wanting to appeal to the lowest common denominator?
Mark_D_Webster: Good to see the HP isn't above running inflammatory polls
eh..what's with the poll. That weed thing isn't the reason people don't want a cashless society, cash has always been around, why should it be abolished when it is used by so many still
lilkitten22: eh..what's with the poll. That weed thing isn't the reason
LOL I was going to vote YES in that poll at the start of the article till that one point about buying weed stopped me in my tracks. What will strippers do? I know it was a joke in the past but will we swipe our cards through their cleavage to tip? Seems meaningless and without the excitement.
Bums would go broke....r since no one would have change.
All joking aside I think Norway has already gone cashless and the savings on printing money/coins, drop in petty theft and benefits of proper financial accounting. But yes, until weed is legalized there is going to be a lot of push back.
Dante604: LOL I was going to vote YES in that poll
Ha... A certain dealer I know uses an Iphone with the widely available payment terminal attachment.. he can take Interac, credit, Paypal, plus a myriad of other online payment processors.
john6118: Ha... A certain dealer I know uses an Iphone with
The question for his customers would be: How secure is HIS online payment processor? He may be clever. But I doubt his customers see it beyond a cute convenience. Weed is still illegal. (I have smoked weed, so I'm not being prudish.)
Mark_D_Webster: The question for his customers would be: How secure is
Maybe because it's a funny joke. Getting all hung-up about it isn't cute. Just substitute "weed" with something as classy as you are. For instance "How will I pay the shoeshine boy?"
BlackAngusYoung: Maybe because it's a funny joke. Getting all hung-up about
It's a bit frightening to think about going cashless. Without the actual money in your hand, it is difficult to think of yourself as actually having money. In a post-cash world, we would then have to worry about a couple of things. 1) Hackers would be an even bigger threat than they are now. 2) What would happen if terrorists figured out a way to sabotage the monetary system setup? America would implode. While it might be convenient to pay by plastic/credit means...it certainly comes with its risks and they are HUGE. I think I'll stick to my cash/coin, thanks.
Vesper_Deveraux: It's a bit frightening to think about going cashless. Without
There are excellent reasons why we should move to a cashless society and soon Sweden is also moving along that line and will lead the Scandinavian countries to this type of transaction. Without cash floating around there would be no more BANK ROBBERIES, no more TAX AVOIDANCE, no more DRUG SALES, no more MONEY LAUNDERING, no more BREAKING & ENTERING. Obviously people will try and get round it by bartering but that will be small potatoes. There will be however problems with the aged and those who have no bank accounts for direct deposits of their pay cheques and for the millions of people who still have no computers and no access to them. These problem can be ironed out but they will only be done by the government curbing the gouging of the banks and by extreme internet vigilance.
Ansdlmol: There are excellent reasons why we should move to a
Nonsense. . . these problems you speak of already occur without cash. Do you still believe money laundering is done utilizing suitcases of Euros and a sketchy delivery made to the caymans? Lol, and drug sales.... dear lord, If their is demand, the transaction will occur, always.
john6118: Nonsense. . . these problems you speak of already occur
I live essentially cashless now & prefer it. I get frustrated when a business isn't wired up for interac or an online business doesn't have Paypal or an equivalent as an option. (i don't like cash, but I don't like credit card debt if I can help it, either.)
That being said, I try to heed my dad's advice & always keep at least a $20 in emergency cash in that 'hidden' part of my wallet.
I was dumb enough to plan to hit the gas station & bank machine one day after work when I was in a morning rush ... That was Aug 14, 2003 - the day of the blackout. Luckily I live on the same grid as our local hospital, so I had power in 6 hours ... But it was still a while before we could access cash & searching old handbags & winter coats made me remember my dad's lesson!
therealjezzie: I live essentially cashless now & prefer it. I get
Loading comments… 
The Huffington Post Canada | By Daniel Tencer Posted: 08/29/2012 6:11 am Updated: 08/29/2012 7:52 am