Tag: canada mobile payments

Businesses in Canada seem interested in the technology but are wary of the costs that will be involved.

The wireless industry in Canada is strengthening the push that it has been making to accelerate the adoption of mobile payments, but merchants are feeling frustrated and pressured as they anticipate higher fees.

The Canadian Federation of Independent Business has said that businesses are preparing to be hit with costs.

The organization, which represents over 109,000 small businesses in the country, said that mobile payments are primed to develop into the “next big fee palooza” for credit card companies, banks, payment processors, and wireless carriers. It has expressed that there has been a “breakdown of trust” between those providers and small businesses.

Small businesses are just waiting to see what higher processing fees and other premiums come with mobile payments.

The CFIB said that the lack of trust from small business toward those companies already exists and is coming from the premium credit card transaction processes that already involve higher processing fees in order to accept them. Now the organization says those companies are waiting to see what mobile payments will have up its sleeves.

The CFIB has said that it is seeking an “express consent” requirement. This would mean that merchants would not have to accept transactions over smartphones and tablets just because they have signed up for the programs to accept contactless credit card transactions.

Canadians have already been using the Visa payWave and MasterCard PayPass contactless terminals in order to make small purchases. Those are the same devices that could be used to accept mobile payments through NFC technology and the CFIB is concerned that the industry will soon be implementing new fees with the use of those devices for accepting smartphone transactions. This would make it difficult for small businesses to remove that option later on if they already have the devices for the contactless card transactions.

On the other hand, banks and wireless providers have stated that they do not have any intention to implement new fees for mobile payments but are concerned that a provision for express consent would slow down merchant adoption of the transaction option.

Mobile Card Reader to expand beyond US

Square, a maker of mobile commerce products, has announced that its Mobile Card Reader will soon be available in Canada. The move aims to engage the growing number of consumers in the country that are showing interest in mobile commerce. The Mobile Card Reader will allow both businesses and consumers to make transactions directly from a smart phone or tablet. This is a physical product, which is available for free, that can be used on both the Android and iOS platforms.

Mobile commerce growing quickly in Canada

Mobile commerce is growing in popularity largely due to the concept that it is more convenient than traditional forms of commerce. Using a smart phone, consumers can pay for goods and services with a simple gesture. For some, this is considered an innovative way to pay for things. For others, it is just another way to make purchases. Whatever the reaction from consumers is, their interest in mobile commerce is growing, as is the demand for platforms that will allow them to make purchases using their mobiles devices.

Device accounts for $8 billion in transactions each year

Though the Mobile Card Reader is free, Square is still able to make a profit off the platform. The company charges a 2.75% fee each time a transaction is made using the platform. According to Square, the platform facilitates more than $8 billion transactions every year. Considering that Square has only operated in the U.S., until very recently, the platform has proven itself to be quite successful. Bringing the Mobile Card Reader into the Canadian market will be Square’s first time expanding beyond the U.S.

Device allows smart phones to become mobile payment platform without native NFC technology

The progress and adoption of mobile commerce is being heavily delayed by the availability of NFC-enabled mobile devices. The low supply of these devices means that consumer engagement in mobile commerce is limited. The Mobile Card Reader solves this problem by being equipped with its own NFC chip, allowing any smart phone or tablet to become a viable mobile payment platform.