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When Ashley Champion started her skateboard customization business, Ace of Dymondz, in 2008, she was mostly taking cash payments for sales.
“I would just meet them at the skate park near my house,” Ms. Champion recalls. “Being a single 18-year-old female at a skate park holding a bunch of cash probably wasn’t the safest.”
Since then, Ms. Champion has grown her hand-painted skateboard business into a full-fledged online skate shop. In 2017, she launched a second business, 416champion, selling gender-free jewellery, apparel and accessories.
Ms. Champion sold her wares at vendor markets, where cash was the preferred payment method. But when the pandemic hit, and when she launched her own operation, the Toronto Queer Market, in 2021, the use of cash had fallen out of favour.
“People were not as used to having cash on them,” Ms. Champion explains. “People were expecting me to take [Interac] e-Transfer, debit or credit card.” A recent study from Interac echoes Ms. Champion’s observations: 60 per cent of Canadians (and 72 per cent of 25 to 34-year-olds) surveyed have no desire to go back to having to carry cash on them the way they used to before the pandemic. This has accelerated an ongoing shift toward card and digital payments.
At the Toronto Queer Market, a pop-up event which hosts over 30 vendors from the LGBTQ+ community, Ms. Champion says that most of her 40-odd vendors are only taking cash and Interac e-Transfer® these days.
“People are very willing to pay with Interac e-Transfer,” she says. “The other positive thing with Interac e-Transfer is that you have the money right away. Other payment choices may take a few days to process. For vendors that are relying on their business as their main source of income, having that few days’ delay is not ideal.”
Nader Henin, AVP, digital and retail commerce products at Interac, says the move towards digital payments began before COVID-19, but was accelerated by it.
“Our data suggests Canadians increased their use of digital payments to pay for goods or to pay each other during the pandemic,” Mr. Henin explains.
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Mr. Henin believes that digital payments will become the new normal, even after the era of lockdowns and curbside pickups.
“For many Canadians, the stickiness of digital payments will influence a long-term shift in behaviour as they continue to experience the convenience and security of digital payments. They will not want to go back to using cash,” he adds. Corinne Pohlmann, senior vice president of national affairs and partnerships at the Canadian Federation of Independent Business, says there was a “massive growth in the use of Interac e-Transfer” during the pandemic, especially among small businesses.
“For many small merchants who have only ever accepted cash, Interac e-Transfer became an easier way to accept payments.”
In addition to market vendors like Ashley Champion, Ms. Pohlmann says that tradespeople like electricians and plumbers may have also benefitted from accepting payments through Interac e-Transfer.
“In the past you may have given them a cheque, but now, you can pay them by Interac e-Transfer,” she explains.
At a time when many small businesses are still recovering from the pandemic, broadening payment options can help them prevent lost sales and reduce friction. Ms. Champion describes the scenario of sending a market customer to an ATM to withdraw cash for a purchase if they don’t have any cash on hand.
“They’ll often get distracted and find something else to do in the meantime,” Ms. Champion says. “Your chances of getting the sale can be higher if the person is still in front of you and doesn’t have to walk away to take out cash and come back to pay.” Accepting Interac® Debit is another way for small businesses to increase convenience for their customers while reducing costs, according to Pohlmann.
“Because Interac charges a flat fee versus a percentage of the transaction, the fees are generally lower,” she says. “It’s been a rough go for the last little while for many small businesses. They’re really looking for ways to save money as much as possible. Interac can be a more economical way for them to manage their transactions.”
For businesses that are eager to start accepting Interac e-Transfer payments like she does, Ms. Champion has a few recommendations.
“Make it as simple as possible,” she says. “Set up Interac e-Transfer Autodeposit and have a very simple e-mail address that customers can type in.”
Ms. Champion has fully embraced digital payments as a part of her businesses. In fact, when accepting participant fees from Toronto Queer Market vendors, she now only accepts Interac e-Transfer payments.
“It’s in my bank account right away and I don’t have to worry about it,” she says.
Interac and Interac e-Transfer are trademarks of Interac Corp.
Advertising feature produced by Globe Content Studio with Interac. The Globe’s editorial department was not involved.