New Canadian Payment Trends
Canada is seeing a wealth of new payment trends coming about in 2018. Many of these payment processing trends have to do with new technologies, but there have also been some changes in the way payment processors do business as a whole, seeking to reach new merchants in a digital economy. Here are a few of the biggest trends of the year so far:
Speed is King
Canadians as a whole have made it clear that fast and convenient payment options are a top priority, both for merchants and consumers. However, they are not willing to give up payment security. As a result, the companies who are able to make processing safe while cutting down on processing time are the real winners today. Ultimately, mobile payment solutions like contactless wallets are at the top of the food chain, while swiping cards is quickly becoming a nuisance.
As more retailers take their goods online, customers are eating up opportunities to shop from home or make purchases in-app from their favorite local stores. Buying online and picking up locally is really the best of both worlds when available. Merchants are actively seeking POS systems that can integrate their online sales with their physical stores for a better customer experience.
Merchants and consumers alike are simply demanding more from the payment process these days. With so many rewards credit cards on the market, merchants are also trying to boost their sales by offering rewards of their own. Of course, these rewards points need to be redeemable, often for a cash value, directly through the POS. This is one of the fastest payment processing trends currently, and we continue to see new and creative ways to implement rewards points in store. Payment processing companies must be able to accommodate these incentivizing programs to keep their merchants happy and competitive.
Less Cash and Paper
Year after year we have seen a steady decline in the amount of cash and paper transactions that take place at POS. In fact, these transactions have declined by more than 30% in just a few short years. Some new merchants have done away with traditional cash registers altogether, and are relying on app-based payment as their sole option, for better or worse.
These payment processing trends are having a big impact on the way ISOs provide services to merchants. Some of these trends demand more innovation from payment processors and their technology teams to reinvent the POS and what it can handle. It may yet be a few years before cash and cheques are in the minority, but we can see that people are opting for instant contactless options every day.