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REPEAT-Cash and Cards Are King: BMO Study

As the Victoria Day long weekend arrives, what payment vehicles will Canadians most likely use for their spending?

- Debit cards dominate for retail purchases, such as gas, groceries and drug store items

- Most Canadians (81 per cent) use cash and debit for their day-to-day expenditures

- Canadians most likely to un-holster their credit cards for 'big-ticket' purchases, such as travel and furniture

TORONTO, ONTARIO--(Marketwire - May 21, 2011) - As Canadians open their wallets to stock up on must-have long weekend supplies, they have a wide array of choices to pay for their purchases. According to a new study from BMO Bank of Montreal, cash and debit cards hold the top spot.

The BMO study, conducted by Leger Marketing, shows 81 per cent of Canadians indicated they currently use cash or debit for most purchases, while cheques have taken a back seat (55 per cent).

The study also revealed:

  • For retail purchases, including gas and grocery items, 48 per cent say they are more likely to use a debit card.
  • 47 per cent indicate they use a credit card for merchandise such as clothing, while 75 per cent use credit cards for 'big-ticket' purchases, such as travel and furniture.
  • Most Canadians (60 per cent) use cash for their day-to-day spending such as lunch and coffee.
  • Those in Quebec are less likely to use cash (71 per cent) compared to any other region with the exception of Atlantic Canada.
  • However, those in Quebec are more likely to use debit cards compared to those in Alberta (78 per cent), Ontario (77 per cent) and British Columbia (76 per cent).

The study was completed with 1,500 Canadian adults and was conducted using Leger Marketing's Web panel between May 2 and 4, 2011.

For more tips on budgeting, planning and smart spending, visit www.bmo.com/smartsteps.

For further information:
For media enquiries:
Matt Duffin, Toronto
(416) 867-3996
matthew.duffin@bmo.com

Sarah Bensadoun, Montreal
(514) 877-8224
sarah.bensadoun@bmo.com

Laurie Grant, Vancouver
(604) 665-7596
laurie.grant@bmo.com
Internet: www.bmo.com