Visa this month unveiled its participation in the Canadian expansion of Square’s instant transfers.
The payments giant says Square’s instant transfers are enabled by Visa Direct, a VisaNet processing capability helping transform global money movement.
Square’s instant transfers allow businesses to access their funds quicker than the next business day, typically the current default setting for Canadian businesses, according to a statement from Visa.
“Cash flow management and more immediate access to funds is critical for small businesses to survive and thrive in a rapidly evolving payments ecosystem,” explains Jim Filice, VP and Head of New Payments, Visa Canada. “Together with Square, we’re committed to supporting Canadian small businesses and helping to identify solutions that can benefit them by delivering fast, reliable and secure access to funds.”
Getting paid quickly is key for small businesses especially after navigating the challenges of a global pandemic and evolving for the much-changed landscape, the company believes. About 44% of Canadian small business owners said real-time access to cash flow was important in keeping their business afloat in the wake of COVID-19.
As the country recovers, over half of Canadian small business owners say their business is still recovering, according to Visa’s Back to Business Study 2022, which was conducted by Wakefield Research in December 2021 and surveyed 2,250 small business owners and 5,000 consumer adults.
“Swift and secure access to money is as important for small businesses as it is to consumers,” said Christina Riechers, Head of Product, Business Banking Team at Square.
“In a changing and increasingly digitized payments landscape, businesses should be able to access their money as soon as they make a sale,” she added, “and we’re proud to bring that experience to sellers across Canada in collaboration with Visa.”
In Canada, Square is also taking advantage of increasingly popular “Buy now, pay later options”: it launched its first integration with Afterpay. The integration will enable Square sellers in Canada to offer Afterpay’s BNPL experience to their customers, helping them attract new shoppers and drive incremental revenue.
The buy now, pay later model has taken off in Canada, fuelled by an accelerated shift to e-commerce throughout the pandemic. BNPL payments are projected to grow more than 60% to reach $6 billion in Canada this year, according to data analytics company Research and Markets.
“From our earliest days, Square has focused on building flexible omnichannel commerce solutions to empower entrepreneurs,” notes Square’s head, Alyssa Henry. “The launch of Afterpay in Canada—one of our largest international markets—is one more step in that direction.”
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