Canadian businesses are increasingly adopting new payment technologies to meet the changing demands of consumers, a new report by Chase Payment Solutions has revealed.
The State of Canadian Payments report surveyed 2,200 small and medium-sized businesses in Canada, covering current and future adoption trends for payment processing. The report found that merchants are open to adopting new payments innovations over the next 12 months, with payment options for consumers set to increase in the country.
Marilu Gaudio, president of Chase Payment Solutions Canada, said: “Shopping habits changed during the pandemic, with 82 per cent of Canadians shopping online in 2020, a jump from 77 per cent in 2018. Our survey suggests things are changing and merchants’ appetite to adopt new technology is increasing.”
Canada’s landscape
The report reflects on the key changes within Canada’s payments landscape, and analyses survey data to determine which payment options are currently in use and which ones are not. As people move towards touchless and mobile shopping, businesses are responding by adding more payment options. In recent years, new payment trends have gained ground in Canada, including mobile wallet, cashless payments and contactless card payments.
“Across the board, we are seeing that over half of businesses who don’t currently offer each payment option are intending to make new technology available for their customers in 2023,” added Gaudio. “It is clear from our research that business decision-makers are finally eager to stay on top of consumer payment demands.”
The report also highlights key findings, including that businesses in the restaurant industry are most open to adopting emerging payment methods, while retail and healthcare respondents are the least open to adoption. Businesses located in Western Canada are most open to adopting emerging payment methods, while Eastern Canadian businesses are lagging in terms of adoption, and Central Canada falls in the middle.
P2P adoption
In terms of payment processing options, businesses across Canada are most open to adopting peer-to-peer payment solutions (P2P/E-transfer) in the next 12 months. Other Canadian business adoption statistics include mobile wallet with 51 per cent current business adoption, contactless credit card with 38 per cent, and cashless with 17 per cent.
The study respondents have a primary business location in Canada and bring in gross revenue between $50,000 and $20million. They all accept credit and/or debit cards, and 50 per cent or more of their total annual revenue comes from either credit or debit card payments. Respondents are not exclusively Chase customers, and they work with a variety of different payment processors.
This survey demonstrates that Canadian businesses are increasingly aware of the importance of meeting consumer demands by adopting new payment technologies. With the pandemic driving a shift towards online shopping and touchless payments, the use of cashless, mobile, and contactless payments are set to increase in Canada over the next 12 months.
