Cash continues to dominate low-value transactions due to the limited acceptance of alternatives and ease of use and speed, according to a Bank of Canada paper published on Thursday.

Carlos Arango, Kim Huynh and Leonard Sabetti, the paper's authors, use discrete-choice models to quantify the role of consumer socio-economic characteristics, payment instrument attributes and transaction features on the probability of using cash, debit card or credit card at the point-of-sale. The authors use the