We\u2019re also hearing about SMEs\u2019 needs for payment solutions that will streamline their back office operations. There\u2019s lots of potential for automating payables and receivables with accounting\/ERP software integrations \u2014 in other words, bringing the efficiencies of finance transformation to SMEs<\/a>.<\/p>\n\n\n\n Daniel Eberhard, founder and CEO of the fintech KOHO, says SMEs want fast account-to-account payments so they can make real-time payments to contractors, suppliers and employees. By replacing Electronic Funds Transfers (EFTs) and cheques with faster payment options, employer businesses could pay their employees at the end of each shift instead of essentially locking their pay away for a number of days. And because SMEs employ millions of people collectively, this would not only solve a pain point for hourly wage earners, but could help stimulate the economy as well.<\/p>\n\n\n\n Thankfully, there are solutions in the works that can help improve payment processing and business payments, to the benefit of Canada\u2019s SMEs.<\/p>\n\n\n\n <\/p>\n\n\n\n Julien Brazeau, Associate Assistant Deputy Minister at the Department of Finance says he expects the adoption and increased usage of real-time payments to serve as a catalyst for broader innovation, as it has in other jurisdictions that have implemented it.<\/p>\n\n\n\n For SMEs, the benefit of real-time payments can be tangible and immediate: Money is available right away, with good funds, taking away pain points like delays and chargebacks. What small and medium-sized businesses need is access to real money in real time, because cash flow is paramount to their success.<\/p>\n\n\n\n At Interac we\u2019ve been talking all along about the economic potential<\/a> of real-time payments. Interac <\/em>e-Transfer for Business can already enable<\/a> them to vendors and employees, and Interac is continuing to support the development of Canada\u2019s new Real-Time Rail (RTR) system<\/a>.<\/p>\n\n\n\n As an industry, we\u2019re continuing to innovate on the consumer payments side, too. For our part at Interac, we\u2019re continuously working to deliver solutions in order to help meet the payments challenge of Canada\u2019s SMEs.<\/p>\n\n\n\n As we work on these new solutions, I\u2019m glad to hear my colleagues in the fintech and the payments industry share some of the considerations that help drive new offerings at Interac. One is simplicity of adoption: As Dan Kelly noted, business owners don\u2019t have time to work out complicated solutions to their pain points. The challenge lies with innovators to create products and services that work for SMEs right out of the box.<\/p>\n\n\n\n Another forward-looking principle for our industry is the need to deliver real value and real innovation in new payment products and services. Daniel Eberhard noted that it\u2019s often been the case in Canada that \u201cinnovation\u201d is built on existing platforms, focusing on the UX level, rather than delivering services that are truly fresh and transformative. I couldn\u2019t agree more; payment innovators need to think and act on a deep, systemic level to genuinely deliver wins for the Canadian economy.<\/p>\n\n\n\n Interac offerings can fuel SME growth and competitiveness in the here and now. To ensure businesses can get transactions over the finish line and grow sales in an omnichannel world,\u00a0Interac\u00a0Debit is a low-cost payment option that consumers\u00a0recognize and trust<\/a>, with a network that\u2019s connected to 98 per cent of Canadian financial institutions. We continually build on the capabilities of\u00a0Interac\u00a0Debit to meet the needs of SMEs in this fast-paced digital world.<\/p>\n\n\n\nSolutions on the way for business payments, payments modernization<\/h3>\n\n\n\n
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<\/figure>\n\n\n\nEnhanced payment tools for SMEs are a win for Canada\u2019s economy<\/h3>\n\n\n\n