Business

Digital payments projected to surge in 2022

Published

3 years ago

March 29, 2022

Digital payment services and platforms have been taking the world by storm in the past few years, and this trend is expected to grow even further in 2022. Digital payment, also known as electronic payment, refers to the transfer of money or digital currencies between different accounts using digital platforms such as mobile wallets and payment applications.

An electronic payment, or e-commerce payment system, is any platform that allows two parties to make these financial transactions via the internet. Companies and stakeholders are being compelled to reconsider their strategy as the transition to online transactions accelerates electronic payment options. Additionally, as competition heats up, value-added services may help digital payment providers as well as retailers distinguish out and establish new, diversified revenue streams.

In the past two years, with the COVID-19 pandemic, lockdowns, and quarantines, several factors that include the widespread adoption of online shopping and the increased care with sanitary measures have accelerated the transition towards all sorts of digital payments. Unsurprisingly, the total volume of digital payments has continued to increase at an incredible pace, surpassing in 2021 the $4.1 trillion mark.

With multiple industries, as well as consumers, continuously shifting to online marketplaces and digital shopping habits, the adoption of digital payment keeps rising, especially among the younger generations (notably, millennials), who have completely embraced digital wallet services, contactless payment, peer-to-peer payment applications, and many other platforms.

Quick transition

Several markets that have always been known for pushing for innovations and technological advancements, have been quickly adopting digital payments to attract new generations of customers. E-commerce is obviously the sector that has benefitted the most from this new trend, but retailers in general have been impacted by it. The adoption of digital payments can also be seen in the online entertainment industry, especially in the video games and iGaming sectors, as gaming marketplaces and even newly-launched iGaming platforms have begun to accept these services as means of payment.

“Shoppers continue to look for easier ways to tap into mobile wallets, digital gift cards, rewards and loyalty points, and as a result, are increasingly seeking retailers that have embraced digital and contactless payments,” said Theresa McEndree, global head of marketing at Blackhawk Network, a global digital payment provider. “Our research shows that consumers around the world are drawn to retailers that offer fast, seamless and secure digital payments. As we start to hit more of a stride in our economic recovery, the winners will be the merchants that cater to the everyday digital payment preferences of today’s shopper.”

Banking institutions and corporations from a variety of industries made digitization a top priority in 2020 and 2021, and this move is resulting in the emergence of digital payment platforms all over the world. Consumers are digitizing their in-store and online purchases as well, bringing in new technologies like contactless payments and digital wallets. Apps like Venmo and Zelle have grown in popularity, according to industry reports, with volume reaching around $400 billion in 2020 as a result of massive user growth.

Mobile payment apps

Mobile digital payment apps allow the transfer of money between users and companies using mobile devices such as smartphones and tablets. Leading P2P providers reported a double-digit surge in monthly app downloads in 2020, a trend that continued into last year, with 30 percent of individuals in the United States signing up for new P2P platforms in the first half of 2021.

These applications are enabled by a variety of technologies, including machine learning and artificial intelligence. As customers continue to use payment applications to make purchases, machine learning technology can investigate and improve these experiences. This improved user experience ensures fraud protection and increased security.

Cash App, Square Cash, Venmo, and Zelle are among the most popular mobile payment applications, and even Meta, Facebook’s parent corporation, has entered this new market.

Digital wallets

A digital wallet is a payment platform that stores users’ credit or debit card information and can be used on mobile devices and personal computers. These wallets are capable of processing credit cards, rewards cards, and memberships, among other features. Consumers are increasingly turning to mobile wallets due to its convenience and potential to decrease fraud.

According to market research, by September 2020, 76% of customers claimed they had increased their use of this payment method, with 43% indicating they had increased it significantly.

Generation Z is more likely to use digital wallets such as Apple Pay, PayPal, and other P2P services; this age group uses these platforms considerably more than other generations and is quickly catching up to older consumers in their adoption of other digital payment services.

Business

Carry On Canadian Business. Carry On!

Published

6 hours ago

October 22, 2024

Steven Kaszab

Human Resources Officers must be very busy these days what with the general turnover of employees in our retail and business sectors. It is hard enough to find skilled people let alone potential employees willing to be trained. Then after the training, a few weeks go by then they come to you and ask for a raise. You refuse as there simply is no excess money in the budget and away they fly to wherever they come from, trained but not willing to put in the time to achieve that wanted raise.

I have had potentials come in and we give them a test to see if they do indeed know how to weld, polish or work with wood. 2-10 we hire, and one of those is gone in a week or two. Ask that they want overtime, and their laughter leaving the building is loud and unsettling. Housing starts are doing well but way behind because those trades needed to finish a project simply don’t come to the site, with delay after delay. Some people’s attitudes are just too funny. A recent graduate from a Ivy League university came in for an interview. The position was mid-management potential, but when we told them a three month period was needed and then they would make the big bucks they disappeared as fast as they arrived.

Government agencies are really no help, sending us people unsuited or unwilling to carry out the jobs we offer. Handing money over to staffing firms whose referrals are weak and ineffectual. Perhaps with the Fall and Winter upon us, these folks will have to find work and stop playing on the golf course or cottaging away. Tried to hire new arrivals in Canada but it is truly difficult to find someone who has a real identity card and is approved to live and work here. Who do we hire? Several years ago my father’s firm was rocking and rolling with all sorts of work. It was a summer day when the immigration officers arrived and 30+ employees hit the bricks almost immediately. The investigation that followed had threats of fines thrown at us by the officials. Good thing we kept excellent records, photos and digital copies. We had to prove the illegal documents given to us were as good as the real McCoy.

Restauranteurs, builders, manufacturers, finishers, trades-based firms, and warehousing are all suspect in hiring illegals, yet that becomes secondary as Toronto increases its minimum wage again bringing our payroll up another $120,000. Survival in Canada’s financial and business sectors is questionable for many. Good luck Chuck!. at least your carbon tax refund check should be arriving soon.

Steven Kaszab
Bradford, Ontario
skaszab@yahoo.ca

Business

Imperial to cut prices in NWT community after low river prevented resupply by barges

Published

9 hours ago

October 22, 2024

Anne Joseph

NORMAN WELLS, N.W.T. – Imperial Oil says it will temporarily reduce its fuel prices in a Northwest Territories community that has seen costs skyrocket due to low water on the Mackenzie River forcing the cancellation of the summer barge resupply season.

Imperial says in a Facebook post it will cut the air transportation portion that’s included in its wholesale price in Norman Wells for diesel fuel, or heating oil, from $3.38 per litre to $1.69 per litre, starting Tuesday.

The air transportation increase, it further states, will be implemented over a longer period.

It says Imperial is closely monitoring how much fuel needs to be airlifted to the Norman Wells area to prevent runouts until the winter road season begins and supplies can be replenished.

Gasoline and heating fuel prices approached $5 a litre at the start of this month.

Norman Wells’ town council declared a local emergency on humanitarian grounds last week as some of its 700 residents said they were facing monthly fuel bills coming to more than $5,000.

“The wholesale price increase that Imperial has applied is strictly to cover the air transportation costs. There is no Imperial profit margin included on the wholesale price. Imperial does not set prices at the retail level,” Imperial’s statement on Monday said.

The statement further said Imperial is working closely with the Northwest Territories government on ways to help residents in the near term.

“Imperial Oil’s decision to lower the price of home heating fuel offers immediate relief to residents facing financial pressures. This step reflects a swift response by Imperial Oil to discussions with the GNWT and will help ease short-term financial burdens on residents,” Caroline Wawzonek, Deputy Premier and Minister of Finance and Infrastructure, said in a news release Monday.

Wawzonek also noted the Territories government has supported the community with implementation of a fund supporting businesses and communities impacted by barge cancellations. She said there have also been increases to the Senior Home Heating Subsidy in Norman Wells, and continued support for heating costs for eligible Income Assistance recipients.

Additionally, she said the government has donated $150,000 to the Norman Wells food bank.

In its declaration of a state of emergency, the town said the mayor and council recognized the recent hike in fuel prices has strained household budgets, raised transportation costs, and affected local businesses.

It added that for the next three months, water and sewer service fees will be waived for all residents and businesses.

This report by The Canadian Press was first published Oct. 21, 2024.

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Business

U.S. vote has Canadian business leaders worried about protectionist policies: KPMG

Published

9 hours ago

October 22, 2024

Anne Joseph

TORONTO – A new report says many Canadian business leaders are worried about economic uncertainties related to the looming U.S. election.

The survey by KPMG in Canada of 735 small- and medium-sized businesses says 87 per cent fear the Canadian economy could become “collateral damage” from American protectionist policies that lead to less favourable trade deals and increased tariffs

It says that due to those concerns, 85 per cent of business leaders in Canada polled are reviewing their business strategies to prepare for a change in leadership.

The concerns are primarily being felt by larger Canadian companies and sectors that are highly integrated with the U.S. economy, such as manufacturing, automotive, transportation and warehousing, energy and natural resources, as well as technology, media and telecommunications.

Shaira Nanji, a KPMG Law partner in its tax practice, says the prospect of further changes to economic and trade policies in the U.S. means some Canadian firms will need to look for ways to mitigate added costs and take advantage of potential trade relief provisions to remain competitive.

Both presidential candidates have campaigned on protectionist policies that could cause uncertainty for Canadian trade, and whoever takes the White House will be in charge during the review of the United States-Mexico-Canada Agreement in 2026.

This report by The Canadian Press was first published Oct. 22, 2024.

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