Payment Processing Blog

How New Payment Processors Are Changing E-commerce in Canada

payment processor taking a transaction

E-commerce is continuing to grow and expand at a fast pace especially during 2020 where storefronts had to close down due to the pandemic. Global e-commerce was valued at $1.9 trillion in 2016 while growing double-digits every year. 

An important component of online shopping is the payment processing system, the behind the scene mechanics of buying an item online in order for it to end up on your doorstep. 

As e-commerce grows, so does the payment system industry as more and more companies come onto the horizon offering lower rates and alternative payment structures. 

There is one shared goal that most payment processing companies in Canada are after, and that is enhancing the user experience. In order to become the most favourable and desired company that businesses will want to integrate into their online store. 

Creating a seamless payment experience

Every payment processing company in Canada should have a focus on improving the overall customer and user experience. 

This is really important considering that it is estimated that there will be 2.14 billion global digital buyers in 2021, meaning that it would be a great idea to have an online store for your business if you don’t have one already. 

When the 2019 pandemic shut down stores in almost all major cities, businesses had to rely on their online store and those without e-stores and not equipped to take online payment had to act fast. One of the most successful online stores during the pandemic was undoubtedly Amazon, seeing a 200 percent increase in profits. 

As an integral part of that experience is the checkout process, offering a simple and seamless shopping experience will keep the customers coming back. When a customer has made that decision to buy an item, it’s crucial that the checkout process doesn’t make them change their mind and in fact, encourages them to complete the transition. 

There continues to be a demand for multiple payments and currency options, so if you want to be competitive in the industry you need to have those features. A valuable component to a payment processing system is integration optimization where customers do not need to insert all their card details. 

It’s quite clear that more and more people are realizing how much more convenient online shopping is. While e-commerce has always been on the rise, the pandemic definitely gave it an extra boost. It’s estimated that e-commerce sales will make up 22 percent of all retail sales in 2023. 

Part of the user experience is optimizing your online store for mobile devices. Just as online shopping is growing, we are also seeing a huge increase in buying via your phone. There is a huge opportunity for e-commerce businesses to go mobile and optimize their app or mobile site for payment processing. 

Choosing between payment processing companies in Canada

As the e-commerce industry grows, so does the payment processing industry. These days the choices for payment processors are abundant. 

Industry giants like PayPal and Stripe have a tight hold on e-commerce stores but newer companies are coming into the scene and offering much better deals.

Even though these newer companies lack reputation, it doesn’t mean they are any less reliable if they have privacy and security as their number one focus.

Stripe, the top-dog in payment processing, has a transaction fee of 2.9% + .30 cents per successful card charge. Whereas Penni will be offering much lower rates so you can keep your revenue high and work on investing in your business. 

Your payment processor will play an important role in your business and you should focus on these three qualities when choosing which company to go with. 

Security

Even though online shopping has become part of the norm, people still worry about their privacy and security, especially in regards to their credit card details.

Ensure you are choosing a payment processing system that is secure and trustworthy. 

Price

These fees may seem small but as your business grows, they will begin to make a larger impact on your businesses’ finances. 

Research a few payment companies as there are some out there with much lower transaction fees such as Penni.  

Payment methods

You want to ensure that your customer base is able to checkout using their preferred payment method or currency. 

As the e-commerce industry expands it leaves more room for competition between payment processing companies in Canada. Your priority needs to be what is best for your business and your customers. 

Penni Payments can help improve your customer experience by providing a simple and secure payment processing system for your online checkout. You can reach out to our team for more information and start saving on transactions fees today!