Tag: canada mobile payments

While cash purchases are becoming less commonplace in Canada, it’s plastic, not smartphones leading the way.

A new Moneris report revealed that Canadian mobile payments enthusiasm is finally growing. The report’s prediction is that by 2013, only 10 percent of transactions in Canada will be made with cash. In 2014, that figure was still 35 percent.

Digital payment technologies such as mobile wallets will be greatly responsible for reducing cash use.

The 70 percent decline in cash purchases from 2014 through 2030 will be greatly the result of Canadian mobile payments adoption. The number of contactless transactions and mobile wallets in use will reduce the need to carry cash.

The report indicated that one in four Canadians between the ages of 18 and 34 years old already prefer using a mobile wallet over cash or plastic. Comparatively, only 18 percent feel that way in the 45 to 54 year old age group. Among those from 55 to 64 years old, 10 percent prefer mobile wallets. For those aged 65 and over, only 6 percent would want to use their smartphones instead of cash or credit and debit cards.

That said, there remain some very specific barriers to Canadian mobile payments adoption.

Leger conducted a survey in which there were 1,516 Canadian participants. When asked why they would choose not to use a mobile wallet, 62 percent had their doubts about security. They said they would be more likely to use smartphones to make purchases if they felt confident in mobile security.

Moreover, 42 percent said they’d be interested in using mobile payments if there were more stores that accepted those transactions. Another 50 percent said they would be interested in using smartphone payments if it meant they could leave all their plastic loyalty cards at home.

The report also showed interest in some of the additional opportunities offered by Canadian mobile payments. For example 48 percent of those surveyed said they would use a mobile wallet if they were emailed a receipt. Furthermore, 46 percent said they would use it if all stores accepted the technology. Moreover, 41 percent said they would be interested in using them if they could also store their ID on their phones so they could leave their entire wallets behind. Another 35 percent said they would use mobile payments to pay for public transportation fare.

Elavon announces support for mobile payments service from Apple

Elavon, a provider of payment technology in Canada, has announced that it has become one of the first payment processing companies to support Apple Pay for Canadian businesses. This means that Apple Pay will now be able to be used at existing EMV point of sale terminals in Canada. Apple launched its new mobile payments service in Canada late last year, but has yet to find any significant support among consumers. This is similar to what apple is experiencing in the U.S., where mobile payments have yet to become mainstream.

Support may provide Apple with the momentum it needs to find success in Canada

Backed by Elavon, Apple’s mobile payments service may gain the ability to reach more consumers. This may be a boon for retailers using Elavon terminals, as this will allow them to connect with consumers that are becoming increasingly mobile-centric. These consumers are beginning to use their mobile devices to get their shopping done as they see mobile payments as more convenient. Mobile payments are still relatively uncommon in Canada, but consumers are showing a great deal of interest in services that allow them to use their mobile devices as digital wallets.

Apple Pay security features may make consumers feel safer about mobile payments

One of the reasons that consumers in Canada, as well as elsewhere, are somewhat weary of mobile payments has to do with security concerns. In the past, consumers have fallen prey to malicious groups that sought to exploit their financial information, which was acquired through compromised payment systems. Apple Pay, however, has won praise for its security features, particularly its use of biometric technology.

Apple may face competition from other companies that are involved in the mobile payments space

Mobile payments services are likely to gain more momentum in Canada as new services become more available. Apple is likely to experience some competition in Canada, as there are already mobile payments services available in the country. The company may be able to overcome this competition, however, by leveraging the security of its service.