It is no secret that Canada has been lagging behind the rest of the world when it comes to payment technology. Check payments in 2021 made up around 30% of the total transaction value in Canada, even in a post-pandemic world where online and electronic payments have jumped dramatically.
Consumers are now expecting more in terms of instant payment capabilities, and businesses are looking to enhance their efficiency and streamline their processes to save time and money. Canadians are now using contactless payments and mobile payments more than ever before, so businesses must keep up with the trends or risk being left behind.
If you are a business that is sending or receiving money electronically in Canada, you are generally limited in terms of choice:
- Electronic Funds Transfer (EFT) – the most common digital payment type
- eTransfer – more recent and faster; however, it comes with sending limits
- Pre-Authorized Debit – Collection only
When offered through the bank, most of these methods are cumbersome and lack the visibility and efficiency businesses need to thrive.
Traditional Payment Methods Are Slowing Business
Many businesses find the common payment methods in Canada time-consuming and frustrating, leading to higher costs that must be passed onto their customers. Due to the nature of these payments, they are also subject to high fees and the potential for bounce-back fees through non-sufficient funds (NSFs).
This creates problems for businesses that are collecting and sending payments on a large scale, for example, those in the lending industry or real estate management. There is a lot of uncertainty about whether payments are viable to go through when collecting regular and variable payments. Payment processing for lenders has been notoriously difficult from an accounts receivable and accounts payable perspective, but thankfully, things are changing.
VoPay – Payment Technology Innovator
There are several payment technology platforms available in Canada, and choosing the right one depends on your business activities and payment requirements. VoPay has fast become a favored payment solution for Canadian businesses of all kinds. As an established Fintech-as-a-Service, VoPay is well suited for a number of different sectors; its payment rails allow businesses to accept and send payments through Interac e-Transfer for Business, credit cards and debit cards, ACH transfers, and EFTs. By integrating VoPay’s single API layer, companies can manage the full cycle of money movement from payments and approvals to reconciliation and accounting in an automated way.
VoPay has brought payment processing into the 21st century with fast, data-driven, traceable and secure bank account payment solutions. With its payment API in place, companies can offer their customers a whole host of payment methods with one simple integration.
VoPay is at the forefront of facilitating emerging payment technologies for businesses across Canada. With exciting new options like Visa Direct arriving in the payment space, being able to offer multiple payment options within a single platform becomes important. Businesses recognize the shift towards digital payments, and while it might be taking longer here in Canada, consumers are already adopting them at an increasing rate.
Looking Ahead
With lots of new emerging payment technologies, the future looks bright for businesses and consumers in Canada. By giving people more options in the digital payment realm, businesses can ensure that they meet consumer expectations and reduce payment friction across their services.
The world looks set to fully embrace digital payments over the next decade, with innovators continuing to push the technology forward and maximize business productivity. Cash and check payments will undoubtedly still hold an important role in the payment ecosystem, but instant digitized payments will open companies up to new opportunities and growth.
