Cash is the only payment method in decline in point-of-sale environments. Experts have noted, however, that consumers will have to see mobile payments as more convenient than debit or credit cards for this industry to really take off.
Brands like Starbucks, Apple and PayPal are the current mobile payment leaders in Canada, but Samsung Pay and Android Pay are fast on their heels.
Dinaro Ly, director of financial technology at MaRS Discovery District, says: “Startups need to pick a few themes and really punch above their weight to differentiate themselves from the giants. For example, Mobeewave and SelfPay are two startups that are actually helping to drive the displacement of cash in Canada.”
Starbucks has integrated rewards like loyalty programs with mobile payment solutions to encourage consumer adoption within its target market. Meanwhile, banks are using apps and mobile banking – that are compatible with smartphones, tablets and other devices – to improve customer experience.