New data from the Canadian Federation of Independent Business (CFIB) shows that payment methods in SMEs have shifted from cash to contactless electronic payment options, including debit cards, credit cards and Interac e-Transfers. According to these latest results, one in three SME owners say they are increasing their use of credit cards and Interac e-Transfers to make and receive payments. The proportion rises to one in four for debit cards. In addition, 38% of SME owners have reduced their use of cash since the outbreak of the pandemic, and 7% no longer use this method of payment at all.
Despite this change of habit, sales remain very low for this time of year. These are the findings of CFIB’s SME Health Status Tracker, developed as part of the #JechoisisPME campaign.
“Although we’re seeing an evolution in payment methods, sales remain dangerously low for this time of year. Nearly two-thirds (62%) of owners have now fully reopened their doors, but only 26% have reached their usual level of sales,” says Jasmin Guénette, CFIB’s vice-president of national affairs.
Additional data from Chase Merchant Services also shows that monthly credit and debit card sales recorded in Canadian SMEs have increased from the low seen in April this year, when a significant number of businesses were closed (40% down in April, 25% down in May and 15% down in June compared to 2019). But sales via these payment methods, from March to June 2020, remain on average 25% lower than they were at the same time last year.
“The situation is improving, but the financial health of SMEs is far from back to normal. To get back on their feet, they need to be able to count on the support of all consumers. When we think local, we think of all those who contribute to our daily lives, whether it’s the corner hardware store, the convenience store across the street or the family bakery. That’s what the #JechoisisPME campaign is all about. We’re asking all consumers to make sure they choose the right places to shop in the coming months, and to give preference to small businesses whenever possible,” concludes Guénette.
Since CFIB created JechoisisPME.ca, thousands of people have pitched in to help small businesses. On its site, CFIB highlights other campaigns organized across the country to support small business takeovers.
Data source: CFIB
The data presented here are the preliminary results of a new CFIB online survey, COVID-19 and Your Business (17thedition ), to which 4,712 CFIB members have responded since July 17, 2020. By way of comparison, for a probability sample with an equal number of respondents, the margin of error would be plus or minus 1.4%, 19 times out of 20.
Source of data from Chase Merchant Services
Chase Merchant Services is a leader in the Canadian payment processing industry and a subsidiary of JPMorgan Chase & Co. Its results are based on Chase data for payment transactions made by Canadian businesses with annual sales of less than $15 million.
About CFIB
CFIB (Canadian Federation of Independent Business) is the country’s largest SME association, with 110,000 members in all sectors and regions. It aims to increase SMEs’ chances of success by defending their interests with governments, providing personalized resources and offering exclusive savings. Visit fcei.ca to find out more.
About the #JechoisisPME campaign
The #JechoisisPME campaign is an extension of SME Saturday, which CFIB organizes every year during SME Week in October. The new campaign runs until the end of the year and is supported by Scotiabank, Chase Merchant Services, eBay Canada, Intuit Canada, Interac Corp and Star Metroland Media. To become a contributor, contact: marketing@fcei.ca.
SOURCE Canadian Federation of Independent Business
