Cashless payment is any payment conducted without the use of old-fashioned cold hard cash, which has become the norm in the Canadian market. In fact, according to the Wired magazine, Canada will beat out the US in becoming a cashless society. Cashless payment includes payments carried out with Interac, Visa, and MasterCard…etc. Although cash payment still accounts for over 40% of all transactions worldwide, a recent MasterCard Advisors whitepaper suggested that cashless payment accounts for 90% of payments in Canada, which is among the highest rates in the world (Cashless Payment Statistics).
What to Expect in 2016 and Beyond for the Cashless Payment Industry
Going forward from Q4 2016, mobile payments will shine. Apple Pay seems to be a definitive leader in the game, followed by Android Pay and Samsung Pay. We are also seeing mobile payments becoming less Smartphone-dependent. New technologies such as Smartwatches and digital bracelets will give consumers even easier options to pay for merchandise according to Ralf Ohlhausen, Business Development Director at the PPRO Group.
In late 2016, Tokenization and Biometric Authentication will further advance in influence on the payment industry. Tokenization is an online encryption technology for securing credit card data, as the credit card numbers are substituted by “tokens”. This ensures that data cannot be breached even if intercepted, and therefore makes transactions secure.
When it comes to authenticating payments, there are several new interesting biometric technology applications in store. Advancing from the traditional methods like password, PIN, and fingerprint, new innovations such as voice recognition, keystroke detection, finger vein scanners and pulse recognition are predicted to become increasingly important for payment security and convenience.
Nowadays, more and more business owners look beyond their own country when doing business. The strategies of expanding E-commerce overseas do not just involve simply translating websites and implementing international logistics. It is vital for business owners to offer shoppers pricing and billing in their local payment method. For example, consumers living in Asia, Eastern Europe and Latin America all have their preferred way of paying and receiving payments. It’s also critical that merchants offer shoppers their preferred local payment method. For instance, customers in China like to use Wechat and Alibaba to exchange money transfers because it is secure and easy. Therefore, it’s important for merchants consider their markets and do enough research to discover the right strategies and partner with the right payment service provider that supports such global initiatives.
The Correlation between the Vending Industry and Cashless Payment
The core advantages of vending machines are that they offer fast service, a wide selection of food/beverages and 24/7 access. With the introduction of cashless payment technology, vending machine customers utilize their Debit or Credit cards to pay with self service. This is useful because consumers nowadays rarely have to carry cash with them and yet they are still able to get their cravings satisfied. Cashless payment is transforming the vending industry because consumers are becoming increasingly averse to carrying cash with them. Therefore, in order for the vending industry to maximize revenue, vending operators are constantly seeking opportunities to capture more impulse purchases and higher spending from surrounding traffic. A new standard of vending payment convenience and speed is now available via cashless payment with MONEXgroup’s revolutionary Contactless Only, unattended payments solutions which can be integrated into virtually any vending machine or kiosk – making unattended payments as quick as a Tap!
What are some of the benefits that cashless payment offers to the vending industry? According to Ingenico.com, here are the following benefits that cashless payment has for the industry:
Generate more immediate sales
- Capability to capture local and foreign customers due to lack of change
- Increase spending per consumer
- Improve pricing flexibility
Optimize payment cost
- Decrease cash management cost
- Low maintenance fee
- Collect cashless transactions for lower acquisition cost
Increased knowledge of customer spending behaviour
- Enable vending machine owners/wholesalers to monitor customers’ nationality, spending behaviour, date, location…etc
- Leverage cashless payment vending solutions to implement loyalty programs
Invest in a future-proof solution
- Vending machines with cashless payment in Canada can comply with Apple Pay, and soon Android Pay, PayPal…etc
- Ensuring the business owners’ systems remain secure and up-to-date with the latest security standards (PCI DSS)
Quick Facts about Cashless Payment
- In 2011, the total global consumer spent $63 trillion, 34 percent ($21 trillion) was done with cash, with cashless payments accounting for 66 percent ($42 trillion)
- Cashless payment accounts for 90% of the total value of consumer payments in Canada
- Countries such as United States (estimated 80% of payment was cashless), and Singapore (69%) are considered to be the countries that are becoming more and more cashless
- Emerging economies such as India (32%), Russia (31%) and Nigeria (10%) are just embarking on their cashless journey
MONEXgroup and the Future of Cashless Payment
In addition to being a market leader in merchant services and POS terminals, MONEXgroup is the one and only payment processing company in Canada that integrates unattended Contactless Only payment technology into any Self-Serve Kiosk or vending machine with PCI certification for Visa payWave, MasterCard Tap & Go, Interac Flash and Mobile Payments such as Apple Pay and Android Pay (coming soon).
MONEXgroup offers a wide range of customizable payment solutions for the Vending industry that maximize unattended transactions and dramatically lower maintenance costs. For example, our exclusive Contactless Only payments module is currently being deployed at tire inflator machines at gas stations nationwide, so customers will no longer dig for change when pumping their tires. This is Canada’s first successful implementation of a Contactless Only payment interface that is fully PCI compliant and certified by the major card brands, supporting Visa payWave, MasterCard Tap & Go, Interac Flash and Apple Pay. This proven market-ready technology can now be integrated into any Vending machine! If Contactless Only isn’t right for you… no problem! We also offer Chip & Pin, Mag, and SmartCard systems, combining a variety of technologies.
When partnering with the number one payment processor in Canada; MONEXgroup will increase your efficiency and quality of service and lower the related costs. Request a Cost Comparison Analysis today.