Canadian businesses and consumers face four major hurdles when it comes to sending money today:
1. Lack of Options: Canadians are limited in terms of payment options, with only one or two methods considered cost-effective for everyday use.
2. Cross-Border Payments: For businesses and consumers alike, sending money abroad, even just to the States, can be painful, not to mention not always cost-efficient.
3. Transaction Speed: Traditional bank payments are simply too slow to meet the expectations of today's businesses and consumers. Account-to-account (A2A) payments in Canada are still not real-time and can take up to 5 days to process.
4. Payment Inclusivity: It can be difficult to cater to your entire audience in terms of how they prefer to receive payments, which often leads to customers going elsewhere to find a better offer.
The Opportunity: Instant Payments To Cards, Bank Accounts, Digital Wallets & More
Sending funds is highly reliant on legacy banking systems, and there are very few native cross-border payment services within consumer platforms. Mastercard® and VoPay identified this opportunity and collaborated to bring a new payment solution to Canada through Mastercard Move.
The value of Mastercard Move is simple: send payments domestically or internationally in near real-time to multiple receiving endpoints using standard credit/debit card details.
This means you can send funds to almost any receiver, regardless of where they bank, what card network they use, or what kind of account they have.
And then, to top it off, it can be used to send payments internationally, in 100 currencies, to the same spread of receiving endpoints:
Bank Accounts
Digital Wallets
Credit Cards
Debit Cards
Prepaid Cards
International Cards
This flexibility to send funds to multiple destinations is what makes Mastercard Move so attractive and why businesses are coming to us to incorporate it into their products and services.
Providing An Edge For Canadian Businesses
Canadian businesses are striving to gain an edge over their rivals on both a local and global level. User experience is everything these days, especially for software platforms, and giving customers access to better services can make the difference between you and your rivals.
Push-to-card payments offer the ultimate user convenience for customers and clients needing funds. The real-time component of push-to-card makes it a huge improvement over traditional bank payments, and the fact that customers and clients don't have to worry about where the funds will go is great for peace of mind.
Push-to-card can be leveraged across several use cases:
Payroll: Send funds to employees quickly and safely
Lending: Disburse loan payouts to borrowers instantly and scale your lending platform
Marketplaces: Pay platform vendors in real-time for a better user experience
Fintechs: Build instant payment technology into your fintech app or platform
For businesses that need to transact both ways, such as sending and collecting, VoPay’s tokenization technology allows them to use push-to-card and pull-from-card payments in conjunction with each other. They can simply request customer card details, usually at the time of payment, then tokenize this information and use it for future push-to-card payments.
Scenario: Insurance Company Uses Mastercard Move To Pay Claims Instantly Around The World
Imagine a travel insurance company that wants to improve customer experience by speeding up claims payments. It also wants to reduce friction by requesting payment details only once and using the same information to collect premium payments.
The company captures the customer’s card information at the time of onboarding and tokenizes it to set up a monthly debit for the premium payments. When a claim arises, the insurer calculates the amount and uses the stored token to initiate the real-time payout directly to the customer's account.
Scenario: Gig Platform Offers On-Demand Wage Payouts To Workers
Many gig platforms are desperate to improve the platform experience of their workers to stay competitive as more rivals enter the market. One way they can do this is to ensure workers get paid quickly for their services and let them choose when they get paid.
It uses worker card information to disburse funds to their account in real-time and builds this functionality into their app to give workers the power to initiate these payments. As they earn money from gigs, it is reflected in their balance, and they can choose to withdraw from their balance to their card account, bank account, or virtual account linked to their card information.
This is all possible on VoPay’s platform thanks to our partnerships with major networks such as Mastercard and the tokenization technology within our fintech stack.
Taking Canadian Payouts To The Global Stage
VoPay’s push-to-card services can be used to send funds to international card accounts, provided the cards are on major networks. The ability to send payments globally is a huge driver for businesses looking to offer more competitive services and scale their user base.
Through VoPay’s premium network partnerships with major players such as Mastercard, businesses can leverage our services and incorporate them into their products without all the headaches of building payment functionality from the ground up.
VoPay has been perfecting payments and financial technology for almost a decade, so you don't have to. Explore our complete range of payment methods, including push-to-card payments, or speak to one of our Advisors today to get started.
