Increasing credit card transaction fees are a growing concern for Canadian retailers and small businesses. As a result of inflation, many businesses are raising prices. Still, small businesses are reluctant to pass on additional fees to their customers, according to a recent CFIB report - this means business-to-business invoices for suppliers and vendors will most likely pass on this cost.
Feedback from Xero small business customers found that small business customers indicated that they were most concerned with finding less expensive and more efficient ways to be paid - without increasing costs for themselves. In response, Xero recently announced two new integrations, allowing businesses to send invoices via Interac e-transfer, thereby reducing costs and improving efficiency. DirectPay and Clik2Pay, allow customers to use Interac e-transfer as the default payment method.
Image Credit: Shutterstock
Why This Trend Is Growing
- Cost-efficient Transactions
- Implementing cost-efficient payment methods that minimize transaction fees and improve efficiency presents an opportunity for businesses to reduce expenses and improve customer satisfaction.
- Digital Payment Solutions
- The adoption of digital payment solutions such as Interac e-transfer can help businesses avoid the increasing transaction fees and meet the needs of customers who prioritize efficient methods.
- Customer-centric Invoicing
- Developing invoicing solutions that prioritize customer convenience and cost-effectiveness is an opportunity for businesses to win over more customers and differentiate themselves from competitors.
Industries Being Reshaped
- Finance
- The finance industry could leverage digital payment solutions and develop new cost-efficient payment methods that reduce transaction fees and offer more convenience to customers.
- Retail
- Retailers could benefit from implementing more customer-centric invoicing solutions that provide both convenience and cost-effectiveness for their business partners.
- Technology
- Integration of digital payment solutions with existing technologies is an opportunity for the technology industry to create more efficient and convenient ways of conducting transactions for businesses and customers.
