Since the introduction of modern POS terminals and automated processing of Credit and Debit cards, the Canadian POS market has witnessed a revolutionary movement with rapid advancement in technology, functionality and ease-of-use. Not too long ago, Canadian consumers paid with their credit card by signing their signatures on a receipt, which evolved into Chip & Pin technology with heightened EMV securing standards. Nowadays, contactless payment is emerging as king! Shoppers are delighted to be able to simply tap their card or mobile device against the POS terminal to pay in a fraction of the time. Canadian consumers and merchants are looking forward to new payment technology trends that will further improve the purchasing experience level in the next coming years.
Payment Technology Trends
There are 8 payment technology trends that Canadian merchants and consumers can expect to witness this year:
Payment Technology Trends – Mobile payments are here to stay
- We’ve heard over and over again that people are starting to pay more and more with their mobile phones, especially with the introduction of App technology like Apple Pay, Samsung Pay and Android Pay. The reason? Convenience! In fact, a global organization EPAM that focuses on payment technology boldly predicts that within the next year, 50 per cent of Smartphone users will choose mobile payments as their preferred payment method.
- Payment Technology Trends – Payments happen in real-time
In the past when we made payments on our Debit or Credit cards, we would not necessarily see the payment reflected on our account immediately. But nowadays, whenever we make a payment via a card, especially with Debit card, it is almost instantaneous reflected on our account.
- Payment Technology Trends – Physical cards become digital
Cash and cheques are becoming a relic of the past with the rise of apps, wearables and digital wallets. However, the concept of credit cards – including the processing, the ability to borrow money and perks such as reward points – is timeless.
- Payment Technology Trends – Security will get more sophisticated
Financial institutions have been investing billions of dollars into anti-fraud measures in developing biometrics, which includes fingerprint and retina scanning to verify purchases. Although using one’s PIN number to verify identity is common, PINs don’t protect against online purchases.
- Payment Technology Trends – Shopping will be made easier
Recently, Amazon has developed technology that opens a new frontier of shopping convenience with Amazon Go. Consumers can walk into the store, pick up what they want, bypass the checkout aisle as their Amazon Go app automatically makes the purchase. This move from Amazon signifies a new retail experience that leverages the capability of mobile based transactions.
- Payment Technology Trends – Your bank branch will downsize
Now that cash is declining and people deposit electronically or via their Smartphones, less and less people visit the banks to do their basic banking. Banks will become more of a specialized outlet for consulting services such as getting a business loan and/or mortgage approved.
- Payment Technology Trends – Face Recognition
Since summer of 2016, Canadian MasterCard holders with Smartphones have been able to pay for their online purchases by taking a selfie or stamping their fingerprint on the screen instead of punching in a PIN. This payment program was first tested in the Netherlands, where the Dutch were able to prove whether or not a user was in fact a real person and not a picture. MasterCard’s plan is among the first of numerous financial institutions to take the leap of using face recognition technology to approve payments (MasterCard’s Facial Recognition).
- Payment Technology Trends – Voice Recognition Banking
Just like fingerprint technology, voice recognition innovation saves consumers the hassle of remembering another password and having to login every time they want to make or receive a payment. In the future, especially as voice recognition technology improves, we expect this method of sending and receiving money to gain more traction (Voice-Recognition Banking). For instance, Capital One customers that use Amazon gadgets can ask virtual assistant Alexa to take care of financial transactions for them.
PYMNTS.com Unattended Retail Tracker
MONEXgroup is proud to announce our first-time entry and obtaining a high ranking in the bimonthly Unattended Retail Tracker Report by PYMNTS.com. This overview of the payment trends and activities in the unattended retail market and the companies that offer these services is the trusted resource listing the key players in this booming space. Scoring is based on companies servicing in the following industries: beverage, vending services, parking, remote retail and hospitality & restaurant. MONEXgroup and other merchant services were evaluated based on the types of industries we provide service to, how secure the company is which includes complying to PCI security standards, types of payments the company accepts such as credit/debit cards/digital wallet/virtual terminal, and how advanced the technology is associated with this company (including NFC, EMVC, QR codes).
As an industry leader in North America, MONEXgroup boasts a one-of-a-kind unattended payments Contactless Only Solution. We are a pioneer in this technology frontier where we offer a fully PCI compliant payment solution in unattended environments supporting Visa Paywave, MasterCard Tap & Go, Interac Flash, Apple Pay and Android Pay.
Competing Technology:Usage of QR Codes
Using QR code scanning is a commonly used one-way communication tool that allows for customers to pay for their goods via their phones utilizing the camera functionality QR Code scanning is an alternative to NFC technology which is more commonplace in Canada. How does QR codes payment work? QR Pay uses open source QR codes, and mobile platforms to enable purchase anywhere capabilities. The user scans a QR barcode using a QR scanning application to complete a payment transaction. There are a couple of advantages of using QR codes. First of all, staff don’t need to be particularly trained on how to use it because it’s quite intuitive; another benefit of QR codes is that the QR technology is already there to easily implement in store without investing in new hardware.
Meanwhile there are disadvantages to using QR codes related to the camera and screen interface. Firstly there has to be a clear screen presented when scanning the code, and camera related factors like phone protective screen might create some hindrance on scanning (QR Codes).
MONEXgroup and the Latest Payment Technology Trends
MONEXgroup is an industry front-runner when it comes to payment technology trends. In fact, we are the first Canadian merchant services company that offers a full-service contactless kiosk technology for unattended applications. Our Air-Pump and Car Vacuum technology can be found at virtually all major wide variety of Gas station retailers including Esso, Petro, Husky, Shell…etc. across the nation, where drivers can easily Tap their Credit or Debit card against our uniquely designed contactless reader to activate the air pump machine or vacuum. Our solution is 100% PCI certified and able to accept Tap only payments supporting Visa payWave, MasterCard Tap & Go, Interac Flash, and Apple Pay. You may check out our video to see this solution in-action.
When partnering with the number one Canadian merchant services in Canada; MONEXgroup payment processing will increase your efficiency and quality of service and lower the related costs. Request a Cost Comparison Analysis today.
Author: Lindsey Lu, Marketing Communication Specialist, MONEXgroup
Contact Info: insights@monexgroup.com
Jumpstart your business potential now with MONEXgroup
Get a Free Quote
MONEXgroup Insights
MONEXgroup Insights provides all the tools and resources you need to start, run and grow your business.
The Future of EV Charging Payment Solutions
Adoption of electric vehicles in Canada is growing, partly due to the ever-growing importance of eco-friendly solutions across all aspects of life, but also because access to EV charging stations is rapidly increasing. Another
Secure Healthcare Payment Processing & Medical Payment Data Security
The protection of sensitive information is certainly a major concern for businesses of all types, but in the medical and healthcare industry it is absolutely critical. Companies involved in healthcare must invest in the necessary
Contactless Payment Systems vs. Mobile Payment Technology: What Are They and How Can They Benefit Your Business?
In the last several years, the use of contactless payment systems and mobile payment technology has skyrocketed. With the arrival of COVID-19 in 2020, that use has continued to grow, as businesses and customers
