To state that we are living in a world of vast technological advancements would be a major understatement. It seems as if a new technological development appears every day. We have gone from a world where visiting libraries was the norm to one where information is readily available within seconds on our smart phones. This is isn’t to say that people don’t visit libraries anymore. But they certainly don’t have to as much as they used to.
The internet has essentially revolutionized the ways in which people attain information. Of course, the advent of the worldwide web, websites and smart phones is only the tip of the iceberg when it comes to how technologically-advanced our world has become in 2015. We’ve practically changed everything about the way we operate. Okay, so maybe that’s a bit of an overstatement. But when it comes to how we shop and pay for purchases, the statement is true.
It’s no secret that Canada has become a nation of debit and credit card users. With every passing year, we tend to be more interested in pulling out the plastic instead of the paper to make payments. Business owners all across the country are finding great benefits in being equipped with POS terminals in order to satisfy the growing needs of Canadian consumers. And the Bank of Canada has taken notice.
“The past 20 years have seen significant changes to the way Canadians pay for their purchases at the point of sale (POS),” it reveals in a 2012 report, “In particular, there has been a major shift away from paper-based payment instruments, such as cash and cheques, toward electronic means of payment, such as debit cards and credit cards. Major technological, structural and regulatory developments that are currently under way may significantly affect future methods of payment in this country, and elsewhere.”
In many cases, convenience is cited as a top reason that people prefer paying with their credit cards and debit cards over cash. Firstly, it enables them to not have to worry as much about loss or theft. Losing cash means that the money is gone forever. Losing a piece of plastic means that a call to a credit card company is in order. No money is lost – quite simply a new piece of plastic needs to be received, and any potential fraud can be challenged.
Secondly, credit cards give customers a lot more flexibility. The cards allow customers time to make the payments as opposed to letting go of their cash immediately. Credit card users can either pay their balances off over time or make payments in full by their due dates. No matter what, they are essentially given short-term loans, which can greatly help their financial planning. The reasons for plastic use over cash, quite frankly, are many.
This trend only continues to grow. According to the Bank of Canada, “in the early 1990s, cash accounted for more than 80 per cent of the volume and about 50 per cent of the value of POS transactions. In 2011, however, these shares dropped to below 50 per cent in volume and less than 20 per cent in value. In contrast, the share of electronic-based payments (debit and credit cards) has grown.”
They go on to note that plastic use took an exceptional leap in popularity following the introduction of the Interac debit card system in 1994. “The debit card share of POS purchases (in terms of volume) surged upward until the early 2000s,” reports the Bank of Canada. Not to mention, “the share of credit card payments has risen since the early 2000s, in part, owing to the increasing number of rewards programs connected to credit card use.”
Are you taking advantage of this trend? To begin accepting plastic or to upgrade from your current POS provider, call Canadian POS Corporation at 1-877-748-2884 today!