Long way for paypal to be relevant in Canada
Canadian small and medium-sized businesses (SMB) are not getting as much money as they could, reveals an extensive study commissioned by PayPal customer support. PayPal’s Canadian Small and Medium business Landscape Study reveals that less than only one in five (17%) Canada’s small merchants are using payment tools such as electronic invoicing, an online marketplace, or an e-commerce enabled website.
Canada’s e-commerce spending is expected to reach $42 million by 2018 and internationally this figure is expected to hit $27 billion by 2020. The company’s study points out that Canadian small merchants are not using the power of e-commerce to sell where their consumers are buying – 80% of Canadians bought online in 2015 – and it shows up on their buying behaviour. merchants who take online payments as a against their offline revenue stream registered an average revenue of $175,000, this is more than twice merchants who operate without online payment capabilities ($80,000). merchants who only take payments online reported an average revenue of $150,000.
A large majority of Canada’s small and medium businesses are do not agree to participate let alone compete in the digital economy. The study showed that 83 percent of Canada’s small business do not take other form of online or mobile payment and 71% of this group said they would not sell online.
One of the initial steps for embracing e-commerce is making an online presence, such as a website. Today, only 7% of the Canadian small and medium businesses surveyed have a website featuring online payments processing capability and 34 per cent of merchants who don’t presently take online payments don’t have foreseeable plans to build a website at all.
Canadian small and medium merchants who don’t presently sell online report many concerns that don’t let them do so. Main among them is concern that they won’t be able to provide the same level of service (30%), trailed by online fraud (21%), less understanding of technology (19%), and distribution or delivery issues (19%). Nearly three fourth (72%) of offline merchants claimed that they are not particularly have good understanding in terms of technology and e-marketing knowledge.