Not even one in five small or midsize businesses in Canada are accepting online payments, according to a new report, leaving enormous competitive opportunity for those willing to take the risk. The survey by PayPal Canada found that 83 percent of SMBs that accept payments are exclusively offline, and, of those, 71 percent said they would never consider selling online. One of the main concerns holding them back is fraud. Of those SMBs in Canada that do not sell online, 21 percent identified fraud liability as the most significant barrier keeping them from leveraging the online channel. The only bigger concern for merchants is that they would not be able to provide the same level of service they provide customers in their physical locations (30 percent).
Despite nearly three-quarters of small businesses claiming they don’t feel competent from a technology or marketing standpoint to do business online, Canadian officials believe SMBs should take the time to learn and invest in the channel.
“Virtually every sector of the economy is rapidly being reshaped by technology,” said the Honourable Navdeep Bains, Canada’s Minister of Innovation, Science and Economic Development. “In a global and digital economy that allows consumers to purchase goods and services from anywhere in the world, more Canadian businesses should invest in the development and adoption of new technologies. That’s how Canadian businesses will remain globally competitive and create well-paying jobs for the middle class.”