Cash's role as the top payment method is being challenged by new formats such as contactless cards and mobile wallets. According to a new survey from Research and Markets, NFC-enabled mobile payments and contactless credit cards are positioned to rival cash by 2016.

The report asserts that approximately 80 percent of smartphones in Canada will be NFC-enabled by 2016, which allows them to be used at contactless point-of-sale (POS) terminals. This will drive usage of the payment type over cash and other currently popular means of paying for retail goods. Meanwhile, contactless credit cards are also expected to gain prominence as a means of buoying safety.

"Cash is still expected to remain the most frequently used form of payment in Canada over the next five years, but will suffer substantial erosion from contactless debit and credit payments," explains Contactless News, citing the report.

Similar changes could be heading to the United States as well, with a recent report from Pew Research suggesting mobile wallets could rival more traditional payment avenues by 2020.

This entry was posted by Retail Pro on Monday, June 11th, 2012 at 10:31 am .