Is Your Small Business Up-To-Date With Consumer Payment Methods?
What Your Small Business Needs To Know About Customers & Payment Processing Systems
Over the past decade, especially these past few years, we have seen a major shift in the way consumers choose to pay. You’re much more likely to see someone buying groceries with their phone than a check – even debit cards are taking a hit. There’s a lot to talk about when it comes to the evolving ways people are paying.
How are Canadians paying?
Before we go any further, let’s take a look at some numbers from last year (2016) that give us a picture of how Canadians pay.
- The average adult holds 2.2 credit cards
- 89% of all adults own at least one credit card
- 95% of these cards support contactless payment
- 76% of the population own smartphones (up from 68% in 2015)
- 52% of Canadians use their phone as their primary banking method
In short, Canadians are paying with plastic. In fact, 66% of all POS (point-of-sale) transactions are made with cards. It’s predicted that cash sales will drop to only 23% by the end of this year.
Related Article - Still deciding on your small businesses primary payment processing method? Consult our guide: “Cash or Card: A Payment Processing Primer”.
Okay, so the landscape is shifting, why is this an issue?
If your business stays up-to-date with the trends, it’s not. However, what we’re seeing is that many small businesses in Canada are falling behind. For example, as of last year, only about 40% of POS devices were capable of processing contactless payments. By not having the technology required to meet customer’s preferred payment method, they are more likely to spend their money somewhere that does.
So how can SMBs stay ahead of the trends?
The easiest way to ensure your small business isn’t missing out is by signing up with a card processing company if you haven’t already. They can provide you with the entire payments infrastructure you need to be processing everything from debit cards to payments made from an Apple Watch.
If you already have a processor, get in touch and ensure your systems are meeting the current industry demands.
Evolocity is partnered with a handful of trusted Canadian card processors. Their websites are a great place to start if you’re wondering how your business can benefit.
How many customers have been turned away or upset that your business doesn’t offer their preferred method of payment? How many times have you had a check bounce, or have a check take several weeks to process? Delayed payments can become an accounting nightmare. Here are some of the main benefits you can expect from all the major payment processors:
- New sales possibilities
- Payments are secure and free from fraud
- Convenience for both customers and your accountant
- Instantaneous metrics and stat tracking
Related Article - Are you relatively new to the world of FinTech (Financial Technology)? We explore the latest trends in Fintech and how important it is for your business in our blog post: “FinTech: What’s This Word I’ve Been Hearing?”
It’s time for your small business to get on board
It all comes down to one simple fact - the industry is moving fast, very fast. Your business needs to keep up with the ever-changing landscape if you want to keep your customers happy. It’s time to hop on the speed-train before it leaves the station. By investing in a new payment processing system, you can rest assured knowing your customers are satisfied and your businesses future is brighter.
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