As businesses try to reach customers across the globe, understanding local payment preferences becomes essential for success. This understanding is even more crucial in Canada, a country known for its solid digital economy.
The value of digital payments in Canada is expected to reach US$137 billion by the end of 2023. This is a sign of how quickly the country is becoming more digital. From 2023 to 2027, it's projected to grow by 13.75% annually, reaching $229.40 billion.
Below, we'll talk about the best ways to pay in Canada that your business should know about and how to get around this challenging situation. Let's start.
Canada Payment Trends for 2023
As we step into 2023, the payment landscape in Canada is experiencing a significant shift. The digital revolution is in full swing, transforming how transactions are conducted. The Bank of Canada's research reflects this trend, indicating a steady move towards digital payment methods. However, it's not just about digital payments – it's about the diversity and flexibility they offer.
Even though the digital wave continues, traditional payment methods like cash and checks are still going strong. They serve as a reminder that not all consumers have entirely switched to digital payments and that companies must accept various payment methods.
In addition, mobile payments are also on the rise. The convenience of paying with a few taps on a smartphone has resonated with Canadians, leading to a surge in the use of mobile wallets. This trend is expected to continue, increasing businesses integrating mobile payment options to meet customer demand.
Another intriguing development is the emergence of crypto assets. Although still in its early stages, the acceptance of cryptocurrencies like Bitcoin is slowly gaining momentum. This trend is worth watching, as it could reshape the payment landscape in the future.
Top 5 Payment Methods in Canada
Understanding these payment methods and their nuances is crucial for businesses to cater to the diverse preferences of Canadian consumers. Here are five methods that stand out for their popularity and relevance in Canada:
1. Mobile Payments
Almost half of the world's consumers, precisely 49%, have embraced the convenience of mobile wallets like Apple Pay and Google Pay.
These digital wallets offer a seamless and secure way to make online payments and transfer money, making them a favourite among Canadians. The ease of a few taps to complete a transaction is a compelling reason for their rising popularity.
2. Cards - Debit and Credit
Debit and credit cards are Canada's most common ways to pay for things. Major networks like Visa, American Express, and MasterCard are generally accepted. They are the top two choices for Canadians who want to pay for things online. Their wide use is because they are easy to use, safe, and offer credit choices.
Despite the digital wave, cheques continue to hold their ground. They are often used for certain transactions, including rent payments or business transactions, where a payment record is necessary.
While less prevalent than cards or mobile payments, the continued use of cheques underscores the need for businesses to accommodate a range of payment preferences.
Cash remains king for small-value transactions. Many Canadians prefer the immediate nature of cash, primarily in-person purchases. While its use is declining in favour of digital methods, cash is far from going out of the capture.
Businesses, particularly those with brick-and-mortar stores, should continue accommodating cash payments to cater to all customer preferences.
5. Crypto Assets
The world of crypto assets is flourishing, with over 20,000 cryptocurrencies in circulation valued at over $1.025 trillion. While still a niche in the overall payment landscape, the acceptance of cryptocurrencies like Bitcoin is slowly growing.
An estimated 300 million users worldwide and about 18,000 businesses now accept cryptocurrencies as a valid form of payment. This trend is worth watching as it could reshape the payment landscape in the coming years.
Local Payment Methods and Rising Complexities for Businesses
As businesses strive to meet the diverse payment preferences of Canadian consumers, they encounter a host of challenges, including:
Integration Problems:The payment environment isn't just about giving people different ways to pay. It's about putting these choices together in a way that works well. This integration can be hard, needing technical knowledge and a deep understanding of each payment method.
Security Concerns:Businesses have more security worries as money moves from cash to digital purchases. One in five people are victims of cybercrime, which shows how important it is to have better security in payment methods.
Data Privacy:With 78% of consumers expressing concern about their data privacy, businesses must prioritize data protection to maintain consumer trust and comply with privacy regulations.
Compliance:Businesses must navigate a maze of rules governing different pay methods, from standard ones like cash and checks to new ones like digital wallets and cryptocurrencies. Noncompliance can cost a business a lot of money and hurt its image.
Currency conversion and transactions across borders:For businesses that operate in more than one country, dealing with various currencies can be a big challenge. Rates for changing one currency into another change all the time, which can affect the final amount paid in cross-border transactions.
How Can inai Help you Integrate Payment Methods in Canada?
In the face of the complexities of the Canadian payment landscape, inai emerges as a reliable solution. Here's how:
1. Massive payment method support:
As a comprehensive payment aggregator solution, inai supports over 30 payment gateways and 300 international payment methods.
This wide range allows businesses to cater to the diverse payment preferences of their customers. Companies can offer everything from traditional methods like cash and cheques to digital options like mobile wallets and cryptocurrencies.
2. Low Code integration:
One of the critical advantages of inai is its low-code/no-code integration. This feature simplifies incorporating various payment methods into business systems, making it accessible even to those with minimal technical expertise.
3. Highly secure ecosystem:
Security is a paramount concern in the digital payment sphere. inai addresses this by ensuring compliance with PCI-DSS and GDPR, the leading data security and privacy standards. This commitment to security extends to sales protection, safeguarding businesses against potential fraud and chargebacks.
Beyond these features, inai offers powerful analytics capabilities. These tools give businesses valuable insights into customer payment preferences and sales trends, enabling data-driven decision-making to optimize conversions and revenues.
Long story short, inai is more than just a payment method aggregator. It's a complete platform that helps businesses navigate the intricacies of the payment landscape, enhance customer experience, and drive growth. inai equips businesses to meet the evolving payment preferences of Canadian consumers securely and efficiently.
So, what are you waiting for? Schedule a free demo with us today to understand how inai works and can take your business to new heights.