The Effect of Evolving Technologies on Consumer and Business Payments

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According to new information from Payments Canada’s annual report, innovations and evolving technologies continue to change the way consumers and businesses make their payments. The report for 2020 encompassed an analysis of 22 billion payment transactions that were made in 2019. 

In a press release, it was noted that Canadians wanted to pursue more convenient, secure, and faster payment experiences as well. Methods and channels for such transactions to occur involved contactless technology, wearables, ecommerce, as well as payments that can be made within applications.  

“We continue to see a widespread shift away from paper-based payments, cheques and cash, as Canadians increasingly demonstrate preference for faster, easier and more secure payment experiences,” Tracey Black, the president and chief executive officer (CEO) of Payments Canada, said. 

Black added how such a migration to digital payments was a trend that had been observed for a number of years. The worldwide coronavirus (COVID-19) pandemic also played a significant role in the acceleration of such a shift. 

“More than ever, we are seeing that Canadians’ payment preferences can be impacted by available payment options, for example, contactless payment,” Black added. “Innovation will continue to evolve consumer and business expectations regarding payment flexibility and efficiency.”

In terms of the Payments Canada’s study on payment trends amid COVID-19, it was found that 75% of Canadians said they spent less as they stayed in their homes in the first weeks of the pandemic. 

Meanwhile, contactless payment methods continued to increase in popularity. It was noted that in the early months of the pandemic, 40% of Canadians stated they avoided shopping at locations that did not have touchless payment options. Moreover, there was an accelerated decline in the use of cash while ecommerce transactions were expected to rise. 

Cyrielle Chiron, the head of research and strategic foresight at Payments Canada, also shared insights on the impact of the pandemic on Candian payment trends. According to Chiron, the future payments landscape would keep evolving dramatically and be driven by consumer demands, changing competitive dynamics, as well as new technologies. 

As the payments landscape continues to change amid the worldwide pandemic, businesses must stay up-to-date with the latest developments in terms of technological innovations and consumer needs. Merchant Broker is here to provide that support to businesses in terms of payment processing solutions. 

To receive more information and take your company to the next level and to the future, contact a professional at Merchant Broker today at either 1-888-668-0733 or info[at]merchantbroker.com.

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