Tag: canada mobile payments

Mobile payments may be in for some turbulence in Canada

| November 14, 2014

New legislation could allow merchants to charge a fee on all mobile transactions

New legislation in Canada could cause some turbulence in the mobile commerce space. Some of the country’s lawmakers have introduced legislation that would allow Canada’s merchants to institute a surcharge on customers paying for products from a mobile device. Having to pay additional fees may make mobile commerce somewhat less popular among consumers, but merchants have been having to deal with these fees for some time.

Payment services are proving to be a costly investment for merchants

Organizations that offer mobile payment services, such as Visa and MasterCard, also charge a fee for the merchants that use these services. Generally, merchants pay approximately 2.5% per transaction made through a payment platform. Many merchants have avoided embracing mobile payments because of these fees, while others have seen little issue with the practice. In the case of Visa and MasterCard, the two companies have begun lowering the fees on transactions in order to make mobile payment services more popular among smaller merchants.

Surcharges on mobile transactions could help merchants become more financially stable

Canada Mobile PaymentsPer the new legislation, merchants may be able to offset the financial impact of high interchange fees by imposing fees of their own. Many merchants see mobile commerce as a costly investment and becoming involved in this space has proven to be quite expensive. By imposing fees on mobile transactions, retailers may be able to see some financial gain from their mobile initiatives. Additional fees may not be popular among consumers, however, who may look for merchants that do not charge for mobile transactions rather than support those that do.

Merchants may be unlikely to charge for mobile transactions until they can no longer handle other costs

While many merchants have expressed concerns over the financial aspects of mobile commerce, relatively few of them are likely to begin charging for mobile transactions. When a high profile platform, such as Apple Pay, arrives in Canada, however, merchants may change their minds regarding the matter. Such a platform introduces more complexity to the commerce space and has the potential to raise costs for merchants, which will need to be offset for the sake of financial survivability.

Mobile payments firm to expand into Canada

| July 4, 2014

Square announces plans to open up new office in Canada this year

Square, one of the largest mobile payments firms in the U.S., is continuing its efforts to break into new markets by opening up a new office in Canada. The company has found significant success in the mobile space through its various partnerships, one of the most famous of which is its partnership with Starbucks. By teaming with Starbucks, Square was able to secure its position as a leader in the mobile commerce space. Now, the company is looking to expand beyond the U.S.

New office to be based in Ontario and tap into province’s tech community

Square has plans to open up a new office with more than 30 employees in Ontario, Canada, by September of this year. The company is looking to tap into Ontario’s “thriving and talented tech community” in order to establish a foothold in the Canadian mobile commerce space. The demand for effective mobile commerce solutions in Canada has been on the rise among businesses and consumers alike, and the time may be right for Square to take advantage of this growing demand.

Square helps iOS users participate in mobile commerce

Square Mobile PaymentsPart of the appeal of Square is that it makes mobile payments possible on iOS devices. These devices do not have the inherent ability to participate in mobile commerce and rely on auxiliary applications and hardware in order to do so. This has been something of a problem for iOS users that are interested in mobile commerce, but their demands are being met, to some degree, by Square’s services.

Retailers are beginning to feel the need to engage mobile consumers and Square may be able to help

Canadian retailers are becoming more conscious of the mobile space and are taking steps to engage consumers through a variety of mobile initiatives. Square will offer a new way to engage these consumers and encourage them to make payments with their mobile devices. Engaging mobile consumers will likely lead to higher sales for retailers and helping them appeal more to a demographic that is beginning to change rapidly.