Of the over one million employer businesses in Canada, 99.7 per cent represent small and medium-sized enterprises (SMEs), leaving 0.3 per cent representing large businesses. As a key economic driver, Payments Canada decided to focus a survey specifically on the payment interests of Canadian SMEs, Payments Pulse Survey: Small Business Edition. Building on our E&Y report How can payments modernization benefit Canadian businesses? released earlier this year, we dug deeper to find out how payments systems meet SMEs’ business needs, how inefficiencies in current payments processing impact SMEs and how SMEs anticipate benefiting from a new payments system. The introduction of new systems, rules and standards as part of Payments Canada’s Modernization program will foster a faster, safer and more data-rich payments environment. The top anticipated enhancements will come from new real-time payments, giving small businesses more choice in how they make their payments, and the adoption of the ISO 20022 data standard, which has the potential to improve automation and efficiency by increasing the data that travels with a payment. What we heard loud and clear is that Canadian SMEs are ready for more payment options. They want more choice for their customers at point-of-sale and more options for their back-office payments to suppliers and vendors, such as e-transfers, e-wallets and the digital currencies. And of course, they want their payments to be safe and secure. Finally, the survey found that overwhelmingly the majority of SMEs are willing to integrate new technologies into their operations to meet future payment needs.

1. PAYMENTS PULSE SURVEY:
SMALL BUSINESS EDITION
MARCH 15, 2018

2. FOREWORD
Of the over one million employer businesses in Canada, 99.7 per cent represent small and medium-sized
enterprises (SMEs), leaving 0.3 per cent representing large businesses. As a key economic driver, Payments
Canada decided to focus a survey specifically on the payment interests of Canadian SMEs, Payments Pulse
Survey: Small Business Edition.
Building on our E&Y report How can payments modernization benefit Canadian businesses? released earlier
this year, we dug deeper to find out how payments systems meet SMEs’ business needs, how inefficiencies in
current payments processing impact SMEs and how SMEs anticipate benefiting from a new payments system.
The introduction of new systems, rules and standards as part of Payments Canada’s Modernization program
will foster a faster, safer and more data-rich payments environment. The top anticipated enhancements will
come from new real-time payments, giving small businesses more choice in how they make their payments,
and the adoption of the ISO 20022 data standard, which has the potential to improve automation and efficiency
by increasing the data that travels with a payment.
What we heard loud and clear is that Canadian SMEs are ready for more payment options. They want more
choice for their customers at point-of-sale and more options for their back-office payments to suppliers and
vendors, such as e-transfers, e-wallets and the digital currencies. And of course, they want their payments to
be safe and secure.
Finally, the survey found that overwhelmingly the majority of SMEs are willing to integrate new technologies
into their operations to meet future payment needs.

3. KEY FINDINGS
81%
Of Canadian small businesses are
willing to integrate new technologies
into their operations
88%
Of newer Canadian small
businesses (in operation 10 years
or less) are willing to do the same
Are willing to move away from cash, if they had other options
Willing
61%
Unwilling
30%
61%
Are willing to move away from cheques, if they had other options
Willing
67%
Unwilling
25%
67%
Believe that it is important that the payments industry
continues to evolve
Important
87%
87%
52%
Say that e-transfers are a payment
method they would like to have
available for customers
The barriers to adopting new payment methods
1.
2.
The cost per transaction
The cost per implementation
49%
Say that safety and security is
paramount in terms of payment
priorities

4. METHODOLOGY
QUANTITATIVE RESEARCH
INSTRUMENT
A survey of 303 Canadian small business owners was
completed online between December 29, 2017 to
January 10, 2018 using Leger’s online panel,
LegerWeb.
A probability sample of the same size would yield a
margin of error of +/-5.6%, 19 times out of 20.
In order to qualify:
• The size of the small business could not exceed 499
employees;
• Respondents needed to be at least partly
responsible for decisions about the business’
payment methods; and
• Businesses need to fall into a set list of industries
(i.e. retail, consultancy, services, manufacturing,
wholesale trade, or hospitality).
ABOUT LEGER’S ONLINE
PANEL
Leger’s online panel has approximately 400,000
members nationally and has a retention rate of 90%.
QUALITY CONTROL
Stringent quality assurance measures allow Leger
to achieve the high-quality standards set by the
company. As a result, its methods of data
collection and storage outperform the norms set by
WAPOR (The World Association for Public Opinion
Research). These measures are applied at every
stage of the project: from data collection to
processing, through to analysis. We aim to answer
our clients’ needs with honesty, total confidentiality,
and integrity.

5. RESPONDENT
PROFILE

6. RESPONDENT PROFILE
Men
60%
Wome
n
40%
16%
24%
26%
24%
9%
1%
18-34
35-44
45-54
55-64
65+
REFUSAL
AGEGENDER
Base: All (n=303).
< 45 40%
45+ 59%
SIZE OF THE BUSINESS
23%
27%
24%
8%
17%
1
2-9
10-50
51-100
101+
<10 50%
10+ 50%
MEAN 59.2 employees
REGION
QUE 26%
WEST 32% ATL 011%
ON 31%

7. RESPONDENT PROFILE
34%
19%
24%
14%
9%
< $250 K
$250 K - < $1 M
$1 M - $4.9 M
$5 M+
REFUSAL
YEARS IN BUSINESS
REVENUE
DECISION-MAKING
RE: PAYMENT METHODS
1%
8%
14%
16%
11%
11%
32%
5%
4%
< 1 year
1-4
5-9
10-14
15-19
20-24
25-50
51+
REFUSAL
INDUSTRY
Base: All (n=303).
30%
70%
Myself
Shared with Someone else
42%
23%
16%
10%
5%
4%
SERVICES
CONSULTANT
RETAIL
MANUFACTURING
WHOLESALE TRADE
HOSPITALITY
<10 22%
10+ 74%
MEAN 21.3 years

8. DETAILED
RESULTS
1. Payments

9. 51% PROCESS ANYWHERE UP TO 500 PAYMENTS A MONTH;
39% PROCESS MORE THAN THAT.
0001 On average, how many payments does your business make and receive in a month?
Please consider point-of-sale to the customer, and payments to and from suppliers.
Base: All (n=303).
1%
51%
9%
9%
6%
4%
3%
8%
9%
0
1-500
501-1000
1001-1500
1501-2000
2001-2500
2501-3000
More than 3000
I don't know / I prefer not to answer
PAYMENTS MADE AND RECEIVED IN A GIVEN MONTH
39%
process more than 500
payments in a given month.
Fifty-one percent of those surveyed say their business
processes anywhere up to 500 payments per month. Four-
in-ten (39%) process more than that, with 29% processing
more than 1000 payments per month. (Relatively few [8%]
process more than 3000 payments each month.)
Not surprisingly, the number of payments made and
received in a month increases along with the size of the
business, how long the business has been around, and
how much revenue it makes in a year.
Interestingly, businesses in Atlantic Canada are least likely
to be processing more than 1000 payments a month (12%
vs. 48% among those in Quebec, Ontario, or the West).

10. CASH AND CHEQUES ARE STILL POPULAR METHODS OF
RECEIVEING PAYMENT FROM CUSTOMERS.TOP6
0005 Which are your preferred methods to receive payment from customers?
Base: All (n=303).
99%
52%
50%
49%
48%
37%
37%
23%
13%
10%
4%
4%
<1%
<1%
1%
ANY
Cheque
Credit Card
E-Transfers
Cash
Debit
Automated funds transfer / direct deposit
PayPal
Contactless/Tap
E-Wallet
Check-out free transactions
Digital currency
Other
None of the above
I don’t know / I prefer not to answer
PREFERRED METHODS OF RECEIVING PAYMENT FROM CUSTOMERS
90%
selected a cashless method.
Respondents selected
3.3
methods, on average.
18%
81%
1
2 +
Despite the fact that 90% selected some sort of cashless method, cash and cheques are
still popular methods of receiving payment from customers; roughly half of those surveyed
count cheques (52%) and/or cash (48%) as part of their preferred method(s) of receiving
payment from customers, and both methods make it into the Top Six.
Overall, though, methods are varied. Most small business owners chose at least two
(81%), the average be 3.3. Cheques top the list.

11. E-TRANSFERS AND CREDIT CARDS ARE TWO OF THE MANY
METHODS THAT SHOULD BE AVAILABLE TO CUSTOMERS.TOP5
0007 From the following list, what payment methods would you like to
have available to your customers?
Base: All (n=303).
92%
52%
50%
42%
41%
41%
33%
27%
20%
19%
8%
8%
<1%
4%
4%
ANY
E-Transfers
Credit Card
Cash
Cheque
Debit
Automated funds transfer/ direct deposit
PayPal
E-Wallet
Contactless/Tap
Check-out free transactions
Digital currency
Other
None of the above
I don’t know / I prefer not to answer
METHODS THEY’D LIKE TO HAVE AVAILABLE FOR THEIR CUSTOMERS
89%
selected a cashless method.
Respondents selected
3.7
methods, on average.
17%
76%
1
2 +
The same five methods of payment that businesses prefer to receive from customers are
also the payment methods they would like to have available for their customers. Cash and
cheques remain in the Top Five.
Overall, methods remain varied. Most small business owners chose at least two (76%), the
average be close to four (3.7). E-transfers top the list.

12. BUSINESS OWNERS ARE LOOKING FOR MORE METHODS.
0005 Which are your preferred methods to receive payment from customers?
0007 From the following list, what payment methods would you like to have available to your customers?
Bases: All (n=303).
PAYMENT METHODS SUMMARY: RECEIVING PAYMENT FROM CUSTOMERS
49%
50%
48%
52%
37%
37%
23%
10%
13%
4%
4%
52%
50%
42%
41%
41%
33%
27%
20%
19%
8%
8%
E-Transfers
Credit Card
Cash
Cheque
Debit
Automated funds transfer / direct deposit
PayPal
E-Wallet
Contactless/Tap
Check-out free transactions
Digital currency
PREFERRED METHODS FOR RECEIVING PAYMENT FROM CUSTOMERS
(MEAN: 3.3)
METHODS THEY WOULD LIKE TO HAVE AVAILABLE FOR CUSTOMERS
(MEAN: 3.7)
When what’s currently preferred is analyzed against what
should be available, it’s obvious small business owners
want more options (3.7 vs. the 3.3 they currently prefer,
on average). There appears to be less of a need for
cheques, but more of a need for things like e-wallet,
contactless tap, and check-out free transactions.

13. METHODS TO PAY VENDORS ARE VARIED, BUT CREDIT CARDS AND
CHEQUES ARE AMONG THE MOST POPULAR.TOP6
0006 Which are your preferred methods to pay vendors and suppliers?
Base: All (n=303).
99%
58%
47%
32%
23%
23%
21%
19%
7%
5%
4%
3%
<1%
<1%
ANY
Credit Card
Cheque
E-Transfers
Cash
Automated funds transfer/ direct deposit
Debit
PayPal
Contactless/Tap
E-Wallet
Check-out free transactions
Digital currency
None of the above
I don’t know / I prefer not to answer
PREFERRED METHODS OF PAYING VENDORS AND SUPPLIERS
88%
selected a cashless method.
Respondents selected
2.4
methods, on average.
36%
64%
1
2 +
The preferred methods to pay vendors and suppliers are quite varied. Most
small business owners (64%) chose at least two, the average being 2.4
methods. The most popular is a credit card (58%). Cheques are more popular
than cash (47% vs. 23%), but both methods make it into the Top Six. Credit
cards lead the pack.

14. CREDIT CARDS, CHEQUES, AND E-TRANSFERS ARE POPULAR
WAYS TO PAY VENDORS AND SUPPLIERS.TOP5
0008 From the following list, what payment methods would you like to
have available to pay your vendors and suppliers?
Base: All (n=303).
93%
56%
46%
42%
30%
28%
26%
23%
12%
8%
8%
5%
<1%
2%
5%
ANY
Credit Card
Cheque
E-Transfers
Automated funds transfer/ direct deposit
Debit
Cash
PayPal
E-Wallet
Digital currency
Contactless/Tap
Check-out free transactions
Other
None of the above
I don’t know / I prefer not to answer
METHODS THEY’D LIKE TO HAVE AVAILABLE TO PAY VENDORS AND SUPPLIERS
87%
selected a cashless method.
Respondents selected
3.0
methods, on average.
28%
65%
1
2 +
The same five methods of payment that business’ prefer to pay vendors
and suppliers are also the payment methods they would like to have
available to do so. Overall, methods remain varied. Most respondents
(65%) chose at least two, the average being 3.0. Credit cards lead the
pack.

15. BUSINESS OWNERS ARE LOOKING FOR MORE METHODS.
0006 Which are your preferred methods to pay vendors and suppliers?
0008 From the following list, what payment methods would you like to have available to pay your vendors and suppliers?
Bases: All (n=303).
PAYMENT METHODS SUMMARY: PAYING VENDORS AND SUPPLIERS
58%
47%
32%
23%
21%
23%
19%
5%
3%
7%
4%
56%
46%
42%
30%
28%
26%
23%
12%
8%
8%
5%
Credit Card
Cheque
E-Transfers
Automated funds transfer / direct deposit
Debit
Cash
PayPal
E-Wallet
Digital currency
Contactless/Tap
Check-out free transactions
PREFERRED METHODS FOR PAYING VENDORS AND SUPPLIERS
(MEAN: 2.4)
METHODS THEY WOULD LIKE TO HAVE AVAILABLE TO PAY VENDORS AND
SUPPLIERS (MEAN: 3.0)
When what’s currently preferred is analyzed against what
should be available, it’s obvious small business owners want
more options (3.0 vs. the 2.4 they currently prefer, on
average). There appears to be a need for things like: e-
transfers, e-wallets, and digital currency options.

16. 51% MAKE BUSINESS PAYMENTS INTERNATIONALLY.
39% DO NOT.
0003 What percentage of your business’ payments are made internationally?
Base: All (n=303).
PERCENTAGE OF THE BUSINESS’ PAYMENTS THAT ARE MADE INTERNATIONALLY
39%
30%
12%
6%
4%
10%
0
1-25
26-50
51-75
76-100
I don't know / I prefer not to answer
51%
make business payments internationally.
MEAN (including 0): 16%
MEAN (excluding 0): 28%
Half of those surveyed (51%) make business payments internationally.
This is more likely to be the case among more established businesses:
• 10 or more employees (68% vs. <10 employees: 34%);
• 10 or more years in business (57% vs. <10 years: 36%);
• 501+ payments in a month (81% vs. 500 or less: 35%);
• $250K+ in revenue (68% vs. <$250K: 28%).
As a result, the percentage of payments made internationally increases
along with the size of the business, how long the business has been
around, and how much revenue it makes in a year.

17. 23% DO NOT DEAL WITH ONLINE TRANSFERS.
AMONG THOSE WHO DO, THE AVERAGE AMOUNT IS 31%.
0017 What percentage of your payments comes from online transfers, such as PayPal or Interac?
Base: All (n=303).
PERCENTAGE OF THE BUSINESS’ PAYMENTS THAT COME FROM ONLINE TRANSFERS
23%
36%
17%
10%
5%
9%
0
1-25
26-50
51-75
76-100
I don't know / I prefer not to answer
69%
have payments that come from online transfers
(i.e. PayPal or Interac).
MEAN (including 0): 23%
MEAN (excluding 0): 31%
Sixty-nine percent have payments that come
from online transfers. This is especially true
among businesses processing 501+ payments in
a month (79% vs. 500 or less: 66%), and
businesses processing international payments
(86% vs. 52% among those who do not).

18. 54% BELIEVE THEIR BUSINESS SPENDS TOO MUCH TIME ON
PAYMENT PROCESSING ACTIVITIES.
0011 Do you feel your business spends too much time on any of the following
payments processing activities?
Base: All (n=303).
DOES YOUR BUSINESS SPEND TOO MUCH TIME ON CERTAIN PAYMENT PROCESSING ACTIVITIES?
54%
25%
22%
19%
15%
12%
12%
41%
5%
YES
Tracking payments
Matching payments to invoices
Cheque remittance
Cheque Issuance
Reviewing unapplied cash
Forecasting cash flow (or managing cash flow)
None of the above
I don’t know / I prefer not to answer
Yes, on cheques (issuing or remitting):
27%
Yes, on payments (tracking and/or matching):
38%
Over half the small business owners (54%) believe their business
spends too much time on payment processing activities, like tracking
payments and/or matching payments to invoices. These businesses
are more likely to be larger, more established ones:
• 10 or more employees (75% vs. <10 employees: 33%);
• 25 or more years in business (62% vs. <10 years: 46%);
• 501+ payments in a month (72% vs. 500 or less: 38%);
• $250K+ in revenue (70% vs. <$250K: 32%).

19. SAFETY AND SECURITY IS PARAMOUNT.
0021 Rank the following three payment priorities in order of importance to your business.
Base: All (n=303).
THE PERCENTAGE OF THE TIME A PAYMENT PRIORITY WAS RANKED FIRST:
SAFETY AND SECURITY
Ensuring all payments are completed within a private and secure environment.49%
LOW-COST TRANSACTION FEES
A Reduction in the cost per transaction fees applied to the acceptance and/or
processing of all payment options, outside of cash and cheques.
34%
FASTER PAYMENT PROCESSING
Receiving payments in real time, improving cash-flow.14%
When asked to rank these payment priorities in order of importance,
nearly half of small business owners (49%) placed safety and
security first. While faster payment processing was ranked first far
less often (14% ), it was more than two times more likely to placed
first by larger companies:
• 10 or more employees (21% vs. <10 employees: 3%);
• $250K+ in revenue (19% vs. <$250K: 9%).
Not surprisingly, small business owners who believe current
payment processing fees are unfair are nearly two times more likely
to rank low-cost transaction fees first (47% vs. 21% among those
who believe the fees are fair).

20. CURRENT PAYMENT PROCESSING FEES AREN’T FAIR.
0019 To what extent do you agree with the following statement? “I feel the current fees associated with processing payments are fair.”
Base: All (n=303).
“THE CURRENT FEES ASSOCIATED WITH PROCESSING PAYMENTS ARE FAIR.”
10%
STRONGLY AGREE
18%
STRONGLY DISAGREE
50%
44%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
AGREE (NET)
DISAGREE (NET)
I don't know / I prefer not to answer
Small business owners are somewhat divided over whether or not
current payment processing fees are fair: four-in-ten (44%) believe
they are, while 50% believe they are not. Small business owners who
agree, are more likely to be those with an established business:
• 10 or more employees (55% vs. <10 employees: 32%);
• 25 or more years in business (53% vs. <10 years: 33%);
• 501+ payments in a month (59% vs. 500 or less: 32%);
• $250K+ in revenue (53% vs. <$250K: 33%);
• international payments (54% vs. none: 28%).
The opposite holds true for those who disagree.

21. DETAILED
RESULTS
2. New Technology

22. 81% WOULD BE WILLING TO INTEGRATE NEW TECHNOLOGIES
INTO THEIR OPERATIONS.
0004 Which of the following best describes your willingness to integrate new technologies into your operations?
Base: All (n=303).
ARE YOU WILLING TO INTEGRATE NEW TECHNOLOGIES INTO YOUR BUSINESS?
18%
81%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
WILLING (NET)
UNWILLING (NET)
I don't know / I prefer not to answer
5%
STRONGLY DISLIKE the disruption it causes.
46%
STRONGLY SUPPORT new technologies that
help their bottom line.
The vast majority (81%) is willing to integrate new technologies
into their operations. A willingness to accept new technologies is
stronger among:
• newer businesses (<10 years in business: 88% vs. 10+:
83%);
• business that don’t receive monthly payments in cash (90% vs
79% among business that do); and
• business willing to move away from cash (84% vs 70%
among business that are unwilling).

23. PAPER-LESS PAYMENTS ARE EXCITING, BUT INTELLIGENT
ROBOTS ARE A SOURCE OF ANXIETY.
67%
55%
49%
47%
43%
39%
24%
34%
44%
36%
45%
50%
EXCITED (NET)
ANXIOUS (NET)
I don't know / I prefer not to answer
0020 To what extent do you feel excited or anxious, when it comes to each of the following?
Base: All (n=303).
EXCITED OR ANXIOUS ABOUT ANY OF THE FOLLOWING?
Paper-less payments
E-wallets and e-payments
(i.e. Apple Pay, Google Wallet, etc.)
Self-driving vehicles
Connecting to customers
via virtual or augmented reality
Artificially intelligent robots
An artificially intelligent robotic workforce
Paper-less payments are exciting for about seven-in-ten (67%) small business owners, but levels of anxiety increase steadily along with the complexity of
the innovation presented (i.e. an artificially intelligent robotic workforce shows the highest levels of anxiety). Demographically, businesses willing to move
away from cash and cheques are more likely to be very excited about most of the technological innovations tested.

24. THE PAYMENTS INDUSTRY MUST CONTINUE TO EVOLVE.
0022 To what extent do you believe it is important that the payments industry continues to evolve and offer services that streamline the
processing and reconciliation of payments in Canada?
Base: All (n=303).
IS IT IMPORTANT THAT THE PAYMENTS INDUSTRY CONTINUES TO EVOLVE AND OFFER SERVICES
THAT STREAMLINE THE PROCESSING AND RECONCILLIATION OF PAYMENTS IN CANADA?
10%
87%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
IMPORTANT (NET)
UNIMPORTANT (NET)
I don't know / I prefer not to answer
36%
believe this is VERY IMPORTANT.
1%
believes this ISN’T IMPORTANT AT ALL.
About nine-in-ten (87%) small business owners think it is important
that the payments industry continues to evolve. This is especially
true for business owners:
• willing to move away from cash and cheque payments (95%
apiece),
• who deal with international payments (91%),
• who believe the current payment processing fees are fair
(93%), and
• who are willing to pay a transacting fee for modernized
systems (95%).

25. DETAILED
RESULTS
3. New Payment Methods

26. DECISIONS TO ADOPT NEW PAYMENT METHODS ARE OFTEN
INFLUENCED BY A BUSINESS’ CUSTOMERS.
0009 Who influences your decision to adopt new payment methods?
Base: All (n=303).
INFLUENCERS
87%
50%
29%
26%
17%
17%
16%
12%
3%
10%
3%
ANY
My customers
My vendors and suppliers
My financial institution
My payments services provider
My peers and competition
My accounting software provider
My IT provider
Other
None of the above
I don’t know / I prefer not to answer
When deciding on adopting new payment methods, eighty-seven
percent say there are influencers, especially those from larger
companies:
• 10 or more employees (95% vs. <10 employees: 79%);
• $250K+ in revenue (94% vs. <$250K: 78%);
• international payments (94% vs. none: 79%).
The biggest influencers? Customers (50%).

27. YES, THERE ARE USUALLY BARRIERS TO ADOPTING NEW
PAYMENT METHODS.
0010 What, if any, barriers do you experience when adopting new payment methods
into your business?
Base: All (n=303).
BARRIERS
77%
47%
35%
31%
22%
21%
20%
1%
16%
9%
8%
6%
3%
ANY
Costs per transaction
Cost of implementation
Security concerns
Lack of customer demand for change
Time and cost of training
Vendors and suppliers are not technically compatible with new system
Other
FEW TO NO BARRIERS
I have experienced few to no barriers
I don’t see any barriers
I have yet to adopt a new payment method into my business
I don’t know / I prefer not to answer
Nearly eight-in-ten (77%) experience at least one barrier when
adopting new payment methods into their business. This is
especially true for owners of larger businesses:
• 10 or more employees (86% vs. <10 employees: 68%);
• 501+ payments in a month (88% vs. 500 or less: 73%);
• $250K+ in revenue (85% vs. <$250K: 68%);
• international payments (85% vs. none: 69%).
One of the main barriers is the cost per transaction (47%).
Sixteen percent have experienced few, if any, barriers, but these
respondents are more likely to be from smaller, less established
companies (i.e. fewer than ten employees [23%]; <$250K in
revenue [24%]; 500 or fewer payments per month [21%]).

28. FOR 24%, NO MONTHLY PAYMENTS ARE MADE IN CASH.
0012 What percentage of your monthly payments from customers is completed in cash?
Base: All (n=303).
MONTHLY PAYMENTS MADE IN CASH
24%
41%
11%
7%
7%
10%
0
1-25
26-50
51-75
76-100
I don't know / I prefer not to answer
66%
have cash payments each month from customers.
MEAN (including 0): 21%
MEAN (excluding 0): 29%
Most of the small business owners surveyed (66%) have at least
some monthly payments from customers that are completed in
cash. The average proportion, among those who do, is 29%.
Twenty-four percent do not receive any cash payments from
customers, bringing the average proportion down to 21%, overall.
These businesses are two times more likely to be smaller (i.e.
<10 employees [34% vs. 10+: 15%]), and three times more likely
to be processing 500 or fewer payments per month (35% vs.
501+: 9%). These businesses are also statistically less likely to be
making or receiving international payments (39% vs. 17% among
those that do).

29. 0013 To what extent are you willing to move completely away from using cash to electronic payments?
Base: All (n=303).
WILLINGNESS TO MOVE AWAY FROM CASH
7%
30%
61%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
WILLING (NET)
UNWILLING (NET)
I don't know / I prefer not to answer
I don't accept cash
30%
are VERY WILLING.
14%
aren’t WILLING AT ALL.
Most small business owners (61%) are willing to move away from cash and
embrace electronic payment methods, 30% of whom are very willing.
Demographically, those willing to make the transition tend to be from
businesses:
• with 10 or more employees (69% vs. <10: 53%),
• making/receiving international payments (66% vs. 55% among those
who do not),
• not receiving any cash payments in the first place (71% vs. 58% among
those who are);
• willing to move away from using cheques as well (75% vs. 31% who are
not), and
• from Ontario (75% vs. 55% among businesses located anywhere else in
Canada).
MOST ARE WILLING TO MOVE AWAY FROM CASH.

30. MOST ARE WILLING TO MOVE AWAY FROM CASH.
0013 To what extent are you willing to move completely away from using cash to electronic payments?
Base: Everyone but those who mentioned they don’t accept cash (n=283).
WILLINGNESS TO MOVE AWAY FROM CASH
32%
65%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
WILLING (NET)
UNWILLING (NET)
I don't know / I prefer not to answer
32%
are VERY WILLING.
14%
aren’t WILLING AT ALL.
Willingness to move away from cash in favour of electronic payments is virtually unchanged when
those who don’t accept cash are removed from the analysis.

31. 32% OF THE CUSTOMER PAYMENTS RECEIVED ARE
CHEQUES.
0014 What percentage of your monthly payments from customers is completed by cheque?
Base: All (n=303).
MONTHLY PAYMENTS MADE BY CHEQUE
FROM CUSTOMERS
15%
34%
18%
13%
11%
9%
0
1-25
26-50
51-75
76-100
I don't know / I prefer not to answer
76%
have payments each month from customers using a cheque.
MEAN (including 0): 32%
MEAN (excluding 0): 38%
Most small business owners (76%) have payments each month from customers
that are completed using a cheque. The average proportion, among those who
do, is 38%.
Fifteen percent do not receive any cheque payments from customers, especially
smaller businesses (i.e. <10 employees [22% vs. 10+: 8%], making <$250K per
year in revenue [20% vs. $250K+: 9%]).
Businesses using cheques for expenses/suppliers are more likely to be
receiving cheque payments from customers as well (83% vs. 67% among those
who do not).

32. 60% USE CHEQUES TO PAY EXPENSES / SUPPLIERS.
0015 Do you pay suppliers/expenses by cheque?
Base: All (n=303).
60%36%
Yes
No
I don't know / I prefer not to answer
PAYMENTS MADE BY CHEQUE
TO SUPPLIERS / FOR SUPPLIERS
Most small business owners (60%) are using cheques for expenses and/or suppliers,
especially those from larger businesses:
• 10 or more employees (68% vs. <10 employees: 52%);
• 10 or more years in business (65% vs. <10 years: 43%);
• $250K+ in revenue (70% vs. <$250K: 44%).
Those who accept customer payments by cheque are more likely to be using cheques to
pay expenses / suppliers as well (66% vs. 29% among those who do not).

33. MOST WOULD BE WILLING TO MOVE AWAY FROM
CHEQUES.
0016 To what extent are you willing to move completely away from using cheques for convenient electronic payments?
Base: All (n=303).
25%
67%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
WILLING (NET)
UNWILLING (NET)
I don't know / I prefer not to answer
WILLINGNESS TO MOVE AWAY FROM USING CHEQUES
Nearly seven-in-ten (67%) small business owners are willing to move
away from cheques in favour of more convenient electronic
payments, 30% of whom are very willing. Regionally, however,
Quebec’s small business owners are less willing than small business
owners anywhere else in Canada (54% vs. 72%, respectively).
Those willing to move away from cash are more likely to move away
from cheques as well (83% vs. 37% among those unwilling to move
away from cash).
30%
are VERY WILLING.
9%
aren’t WILLING AT ALL.

34. MOST WOULD BE WILLING TO MOVE AWAY FROM
CHEQUES.
0016 To what extent are you willing to move completely away from using cheques for convenient electronic payments?
Base: Those using cheques to pay expenses and/or suppliers and receiving cheques from customers (n=156).
31%
69%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
WILLING (NET)
UNWILLING (NET)
I don't know / I prefer not to answer
WILLINGNESS TO MOVE AWAY FROM USING CHEQUES
When those still accepting cheque payments from customers
and using cheques to pay expenses and/or suppliers are
examined in isolation, willingness to move away from cheques
isn’t much higher than what was witnessed overall (see
previous slide).
24%
are VERY WILLING.
12%
aren’t WILLING AT ALL.

35. 56% WOULD CONSIDER A TRANSACTION FEE, IF THE NEW,
MODERNIZED SYSTEM SAVED THEM MONEY.
YES
13%
0018 Would you be willing to pay a transaction fee (per electronic payment received automatically), if the new, modernized system saved your business
more money on reconciling monthly invoices?
Base: All (n=303).
018b Would the added savings in efficiencies be incentive enough to pay for a transaction?
Base: Those willing to pay the transaction fee (n=169) / Those unwilling to pay the transaction fee (n=119).
WILLINGNESS TO PAY A TRANSACTION FEE
39%
56%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
WILLING (NET)
UNWILLING (NET)
I don't know / I prefer not to answer
YES
59%
Most small business owners (56%) would be willing to pay a transaction fee if
the new system saved their business money on reconciling monthly invoices
each month. Willingness is particularly keen among larger businesses:
• 10 or more employees (73% vs. <10 employees: 39%);
• 501+ payments in a month (74% vs. 500 or less: 43%);
• $250K+ in revenue (69% vs. <$250K: 40%).
Willingness is also statistically higher among those willing to move away from
cash (67%) and/or cheques (65%), relative to those who aren’t (38% and 39%,
respectively).
Among those willing to pay the transaction fee, most (59%) believe the added
savings in efficiencies is incentive enough to pay for a transaction.
WOULD THE ADDED SAVINGS IN
EFFICIENCIES BE INCENTIVE ENOUGH
TO PAY FOR A TRANSACTION?

36. ABOUT PAYMENTS CANADA
Payments Canada ensures that financial transactions in Canada are carried out safely and
securely each day. The organization underpins the Canadian financial system and economy by
owning and operating Canada’s payment clearing and settlement infrastructure, including
associated systems, bylaws, rules and standards. The value of payments cleared by Payments
Canada’s systems in 2017 was approximately $50 trillion or $200 billion every business day.
These encompass a wide range of payments made by Canadians and businesses involving
inter-bank transactions, including those made with debit cards, pre-authorized debits, direct
deposits, bill payments, wire payments and cheques.