This year’s survey, which focuses on the payment trends, interests, and views of Canadian small businesses, revealed the majority of small businesses do fewer than 25 per cent of their transactions in cash but still feel obligated to accept it. The 2019 Payments Pulse: Small Business Edition was undertaken by Leger and Payments Canada between September 17, 2019 and September 24, 2019. An online survey of 300 Canadian small business owners of companies with less than 499 employees was completed using Leger’s online panel. The margin of error for this study was +/- 5.6%, 19 times out of 20.

1. DATE
Report
PROJECT NUMBER2019-10-07 82685-030
SMALL BUSINESS EDITION
PAYMENTS PULSE SURVEY:
PAYMENTS CANADA

2. 2
METHODOLOGY
QUANTITATIVE RESEARCH INSTRUMENT
An online survey of 300 Canadian SMB payment decision makers was completed online between September 17-24 2019, using
Leger’s online panel.
The margin of error for this study was +/-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.

3. KEY FINDINGS

4. KEY FINDINGS
PAYMENTS
▪ Preferred methods for paying vendors and suppliers vary. SMB payment decision makers prefer to pay their vendors and
suppliers with credit cards (62%), cheque (57%), or e-transfer (51%).
▪ Preferred methods for receiving payment from customers are varied as well. The top three methods this time include, e-
transfers (58%), followed by cheque (53%) and cash (44%).
▪ Similarly when it comes to the most efficient payment method to process, the top three methods stay consistent. Two-
thirds (63%) find e-transfer efficient to process followed by cheque (48%) and credit card (44%).
▪ One-quarter believe that they did frustrate or may have frustrated a customer by not having the method of payment the
customer preferred, and two-in-ten say they did or may have lost a sale because of not offering a customer’s preferred
payment method.
CASH PAYMENTS
▪ Seven-in-ten (68%) SMB payment decision makers receive some cash payments each month from customers, with half
saying up to 25% of their business is in cash. Larger and higher-earning small businesses are more likely to be handling cash
payments.
▪ The majority are spending less than 20 hours a month processing cash payments, with (74%) three-quarters of businesses
spending 10 hours monthly or less processing cash payments and 15% spending 10-20 hours per month doing so.
▪ Seven-in-ten (71%) say they, as a small business, have an obligation to their customers to accept cash payments, while six-
in-ten (61%) say accepting cash is important to the success of their business. Larger SMB’s (100-499 employees) are more
likely to agree that accepting cash is important.
▪ Six-in-ten (63%) agree their business would benefit from sending and receiving more data or information, such as an
invoice, with an electronic payment, with businesses with 100-499 employees significantly more likely to agree (91%).

5. KEY FINDINGS
DIGITAL PAYMENTS
▪ Two-thirds (64%) of SMB payment decision makers agree they would be likely to use digital payments (giving up cheques
and cash) if they could send/receive more data or information, such as an invoice. Again, the larger the business, the more
likely to agree with this.
▪ There are barriers to the adoption of digital payments, with cost being the main barrier for 38%. The technology itself is a
barrier for 26%, while 20% are concerned about having a lack of information or education about digital payments. Four-in-
ten see at least two barriers to adopting digital payments.
▪ Despite any barriers, seven-in-ten (68%) feel they could be encouraged to adopt digital payments within their business,
particularly having a clear return on investment (36%). Two-in-ten also feel that having some personal support or coaching,
grants/funding to pay for the technology, and educational resources being available would encourage them to adopt digital
payments.
▪ Three-quarters (74%) of SMB payment decision makers feel that their business would benefit from sending and receiving
instant electronic payments.
▪ Nearly half (46%) say their business relies on digital transactions (card, tap, mobile) to operate. Since offering contactless
payments (card, tap, mobile) 39% say their business’ bottom line has improved.

6. DETAILED RESULTS

7. 75%
10%
5%
5%
1%
1%
2%
2%
<500
501-1000
1001-1500
1501-2000
2001-2500
2501-3000
More than 3000
DK / I prefer not to answer
75% PROCESS ANYWHERE UP TO 500 PAYMENTS A MONTH;
23% PROCESS MORE THAN THAT.
0005 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=300).
7
NUMBER OF PAYMENTS MADE AND RECEIVED PER MONTH
23%
process more than 500
payments per month
Three-quarters (75%) of SMB
payment decision makers say their
business processes up to 500
payments per month, while one-
quarter (23%) process more than
500 per month with 14% processing
more than 1000 payments per
month.

8. 8
TOP5
CREDIT CARDS AND CHEQUES ARE POPULAR METHODS TO
PAY VENDORS AND SUPPLIERS.
0007 What is your most preferred method to pay your vendors and suppliers? Please select all that apply. Base: All (n=300).
8
62%
57%
51%
30%
28%
24%
18%
6%
4%
3%
3%
2%
35%
22%
19%
6%
9%
4%
3%
Credit Card
Cheque
E-Transfers
Cash
Automated funds transfer/ direct deposit
PayPal
Debit
E-Wallet (i.e. Apple Pay, Google Wallet, etc.)
Contactless/Tap
Digital currency
Retail apps
DK/prefer not to answer
Total methods
Preferred method
PREFERRED METHODS TO PAYING VENDORS AND SUPPLIERS
Six-in-ten SMB payment decision makers
say their business prefers to pay their
vendors and suppliers with credit cards
(62%) or by cheque (57%), while slightly
fewer say e-transfer (51%). Cash
payments and automated funds transfers
follow with three-in-ten saying these are
their preferred methods to pay vendors.

9. 9
TOP5
E-TRANSFERS AND CHEQUES ARE POPULAR METHODS TO
RECEIVE PAYMENT FROM CUSTOMERS.
9
58%
53%
44%
37%
33%
23%
21%
6%
4%
4%
3%
1%
23%
18%
15%
16%
15%
6%
4%
E-Transfers
Cheque
Cash
Credit Card
Automated funds transfer/ direct deposit / pre-authorized debits
Debit
PayPal
E-Wallet (i.e. Apple Pay, Google Wallet, etc.)
Digital currency
Contactless/Tap
Retail apps
DK/prefer not to answer
Total methods
Preferred method
PREFERRED METHODS OF RECEIVING PAYMENT FROM CUSTOMERS
0008 What is your most preferred method to receive payments from customers? Are there any other methods you prefer to receive? Please select all that apply. Base: All (n=300).
The preferred methods to receive
payments by SMB payment decision
makers from their customers is by
e-transfer (58%) and by cheque
(53%), followed by cash (44%).
Although credit card is most
desirable when it comes to paying
vendors and suppliers, only four-in-
ten (38%) want to receive payment
with a credit card.

10. SOME CUSTOMERS ARE FRUSTRATED IF THEIR PREFERRED
PAYMENT METHOD IS UNAVAILABLE, LEADING TO POSSIBLE
MISSED SALES.
0009 Has a customer ever expressed frustration because you did not offer the payment method they preferred?
0010 Have you ever lost a sale as a result of not offering a customer’s preferred payment method? Base: All (n=300).
CUSTOMER FRUSTRATED BY LACK OF
PREFERRED PAYMENT METHOD:
25%
14%
11%
74%
1%
YES/MAYBE (NET)
Yes
Maybe, but I’m not sure
No
DK/prefer not to answer
One-quarter (25%) of SMB payment decision makers say a customer has either definitely or possibly been frustrated by the lack of a preferred payment
method, while two-in-ten (20%) say this has or possibly has lost them a sale. Those in Quebec are significantly more likely to say they have not lost a sale
because of not offering a customer’s preferred payment method (89% vs. 76% rest of Canada).
LOST A SALE DUE TO LACK OF
PREFERRED PAYMENT METHOD:
20%
11%
9%
79%
1%

11. FOR 30%, NO MONTHLY PAYMENTS ARE MADE IN CASH.
0011 What percentage of your monthly payments from customers is completed in cash? Base: All (n=300).
11
MONTHLY PAYMENTS MADE IN CASH
30%
49%
10%
6%
4%
2%
0
1-25
26-50
51-75
76-100
DK/ prefer not to answer
68%
Receive cash payments each month from customers.
Seven-in-ten (68%) SMB payment decision makers say their business completes at least some of their payments in cash, with half (49%) saying 1-25% of
their payments each month are cash transactions. Smaller businesses, either those with fewer employees (<100 vs 100+) or those earning less revenue
(<$500K / $500+ annually) are significantly more likely have no cash transactions from customers.

12. 12
TOP5
E-TRANSFERS ARE THE MOST EFFICIENT PAYMENT METHOD
TO PROCESS.
12
63%
48%
44%
33%
33%
24%
21%
5%
3%
3%
1%
1%
27%
17%
19%
14%
10%
6%
5%
E-Transfers
Cheque
Credit Card
Automated funds transfer/ direct deposit
Cash
Debit
PayPal
E-Wallet (i.e. Apple Pay, Google Wallet, etc.)
Contactless/Tap
Digital currency
Retail apps
DK/prefer not to answer
Total methods
Preferred method
MOST EFFICIENT PAYMENT METHOD TO PROCESS
0012 What payment method is the most efficient for you to process? Do you find any other payment methods efficient? Please select all that apply. Base: All (n=300).
Six-in-ten (63%) SMB payment decision
makers say that e-transfers are efficient
payment methods, with 27% saying it is
the most efficient. Half say cheques (48%)
and credit cards (44%) are efficient
payment methods. One-third find
automated funds transfer / direct deposit
(33%) and cash (33%) an efficient
payment method.

13. THREE-QUARTERS SPEND 10 HOURS OR LESS A MONTH
PROCESSING CASH PAYMENTS.
0013 On average, how much time do you spend a month processing cash payments? Base: All (n=300).
13
89%
Spend 20 hours or less per month processing
cash payments
MONTHLY PAYMENTS MADE IN CASH
74%
15%
7%
1%
4%
10 hours or less a month
10-20 hours per month
20-30 hours per month
More than 30 hours per month
DK/prefer not to answer
Three-quarters (74%) of SMB payment decision makers say their company spends ten hours or less each month processing cash payments. Smaller
businesses, either those with fewer employees (<100 vs 100+) or those earning less revenue (<$500K / $500+ annually), are significantly more likely to
spend less time processing cash payments each month.

14. SEVEN-IN-TEN AGREE THAT SMALL BUSINESSES HAVE AN
OBLIGATION TO THEIR CUSTOMERS TO ACCEPT CASH.
0014, 0015 , 0016 To what extent do you agree with this statement: Base: All (n=300).
Seven-in-ten (71%) SMB payment decision makers believe their business has an obligation to their customers to accept cash as payment, and six-in-ten (61%)
believe that accepting cash is important to the success of their business. Nearly two-thirds (63%) agree that their business would benefit from the ability to send
and receive more data/information (such as an invoice) with an electronic payment. Larger businesses (100-499 employees vs <100 employees) are significantly
more likely to agree that their business would benefit from sending and receiving more data/information (eg. invoice) with an electronic payment and that
accepting cash as payment is important to the success of their business.
10%
11%
19%
11%
15%
19%
16%
37%
35%
45%
34%
25%
19%
Small businesses have an obligation to their customers
to accept cash as payment
Accepting cash as payment is important to the success
of my business.
My business would benefit from sending and receiving
more data/information (eg. invoice) with an electronic
payment.
DK/prefer not to answer Strongly disagree Somewhat disagree Somewhat agree Strongly agree
AGREEMENT WITH THE FOLLOWING
AGREE SIZE OF BUSINESSS
(NET) 1 2-100 100-499
71% 76% 66% 79%
61% 55% 60% 82%
63% 49% 67% 91%
Significantly higher

15. TWO-THIRDS AGREE THAT THEY WOULD BE LIKELY TO USE
DIGITAL PAYMENTS IF THEY COULD SEND/RECEIVE MORE DATA.
0017 How likely would you be to use digital payments (give up cheques and cash) if you could send and receive more data / information (e.g. invoices) with a payment? Base: All (n=300).
LIKLIHOOD OF USING DIGITAL PAYMENTS:
24%
40%
15%
12%
9%
Very likely
Somewhat likely
Somewhat unlikely
Very unlikely
DK/prefer not to answer
64%
LIKELY
27%
NOT LIKELY
Two-thirds (64%) of SMB payment decision makers say their business would be likely to use digital payments (give up cheques and cash) if they could
send and receive more data / information (e.g. invoices) with a payment. Again, larger businesses (100-499 employees vs <100 employees) are
significantly more likely say they would be likely to do so.
SIZE OF BUSINESSS
1 2-100 100-499
17% 25% 45%
35% 41% 45%
17% 16% 6%
18% 10% -
13% 7% 3%
Significantly higher

16. 75%
38%
26%
20%
17%
16%
14%
11%
6%
23%
2%
ANY (NET)
Cost
Technology
Lack of information/education
Value to business
Time
Lack of support
Effort
Other
I don’t see any barriers to adopting digital payments
DK/prefer not to answer
0018 What do you see as barriers to adopting digital payments? Base: All (n=300).
THREE-QUARTERS SEE AT LEAST ONE BARRIER TO ADOPTING
DIGITAL PAYMENTS; COST IS THE MAIN BARRIER.
BARRIERS TO ADOPTING DIGITAL PAYMENTS:
Three-quarters (75%) of SMB payment decision makers say they see at least one barrier to adopting digital payments in their business, with cost (38%)
being the number one barrier, followed by technology (26%) and lack of information/ education (20%). Four-in-ten (38%) see 2 or more barriers to
adopting digital payments
38%
See 2 or more barriers to
adopting digital payments

17. A CLEAR RETURN ON INVESTMENT WOULD ENCOURAGE 36%
TO ADOPT DIGITAL PAYMENTS.
0019 What would encourage the adoption of digital payments within your business? Base: All (n=XXX).
KEYS TO ENCOURAGING ADOPTION OF DIGITAL:
68%
36%
22%
21%
19%
8%
18%
14%
ANY (NET)
Clear return on investment
Personal support/coaching
Grants/funding
Educational resources
Other
Nothing would encourage me to adopt digital
payments
DK/prefer not to answer
Seven-in-ten (68%) SMB payment decision makers say they could be encouraged to adopt digital payments within their business, with 36% saying that a
clear return on investment would encourage them to do so. Two-in-ten feel that personal support/coaching (22%), grants/funding (21%), and educational
resources (19%) would encourage them to adopt digital payments within their business. Only 18% say nothing would encourage them to adopt digital
payments. Larger businesses (100-499 employees vs <100 employees) are significantly more likely to say that something would encourage them, while
smaller business (<100 employees vs 100+ employees) are significantly more likely to say nothing would encourage them.
SIZE OF BUSINESSS
1 2-100 100-499
45% 79% 91%
20% 43% 48%
12% 23% 52%
11% 27% 27%
11% 18% 45%
11% 7% -
29% 12% 9%
26% 9% -
Significantly higher

18. THREE-QUARTERS SAY THEIR BUSINESS WOULD BENEFIT
FROM SENDING/RECEIVING INSTANT ELECTRONIC PAYMENTS.
0020 , 0021, 0022 To what extent do you agree with this statement: Base: All (n=300).
6%
4%
8%
20%
30%
12%
13%
21%
47%
30%
32%
27%
9%
14%
DK/prefer not to answer Strongly disagree Somewhat disagree Somewhat agree Strongly agree
Three-quarters (74%) of SMB payment decision makers agree their business would benefit from sending and receiving instant electronic payments. Half
(46%) say their business relies on digital transactions to operate, while 39% say that their business’ bottom line has improved since offering contactless
payments such as card, tap, or mobile. Larger businesses (100-499 employees vs <100 employees) are significantly more likely to agree with all
statements below.
AGREEMENT WITH THE FOLLOWING:
AGREE SIZE OF BUSINESSS
(NET) 1 2-100 100-499
74% 60% 77% 97%
39% 17% 43% 88%
46% 24% 51% 85%
Significantly higher
My business would benefit from
sending and receiving instant
electronic payments.
Since offering contactless payments
such as card, tap, mobile my
business’ bottom line has improved.
My business relies on digital
transactions (card, tap, e-transfer)
to operate.

19. 52%
26%
21%
3%
2%
37%
1%
10%
RELY ON SOMEONE (NET)
My financial institution
My payment service provider
External consultants
Neutral third parties
I manage it independently
Other
DK/prefer not to answer
0023 Who do you rely on to support you in the adoption of new technologies for your business, such as digital payments? Base: All (n=300).
HALF RELY ON SOMEONE ELSE WHEN ADOPTING NEW
TECHNOLOGIES FOR THEIR BUSINESS.
SUPPORT IN ADOPTION OF NEW TECHNOLOGIES:
Half (52%) of SMB payment decision makers rely on someone for support when adopting new technologies for their business, such as digital payments,
with one-quarter (26%) relying on their financial institution and 21% relying on their payment service provider. Nearly four-in-ten (37%) manage the
adoption of new technologies themselves. Sole proprietors are significantly more likely to manage the support of new technologies on their own
compared to larger companies (2 or more employees).
SIZE OF BUSINESSS
1 2-100 100-499
31% 60% 82%
22% 29% 24%
7% 24% 48%
2% 4% 6%
- 4% 3%
49% 33% 18%
2% 1% -
18% 6% -
Significantly higher

20. 37%
33%
15%
14%
2%
37%
9%
27%
15%
6%
3%
My financial institution
My payment service provider
External consultants
Neutral third parties
Other
No one. I am comfortable with the level of
support I receive.
DK/prefer not to answer
0024 Who would you like more support from? Base: All (n=300).
FOUR-IN-TEN SMALL BUSINESS OWNERS WOULD LIKE MORE
SUPPORT FROM THEIR FINANCIAL INSTITUTION.
WHO WOULD YOU LIKE TO RECEIVE ADDITIONAL SUPPORT FROM?
When it comes to additional support for the adoption of new technologies, four-in-ten (37%) SMB payment decision makers say they’d like it from their
financial institution, with one-quarter (27%) saying this is their top choice. One-third (33%) would like additional support from their payment service
provider, while 37% are comfortable with the level of support they already receive.
SIZE OF BUSINESSS
1 2-100 100-499
18% 43% 67%
13% 38% 70%
4% 20% 30%
4% 15% 36%
1% 2% 3%
59% 29% 12%
17% 5% -
Significantly higher

21. RESPONDENT PROFILE

22. Men
59%
Women
41%
RESPONDENT PROFILE
16%
22%
22%
21%
19%
18-34
35-44
45-54
55-64
65+
AGEGENDER
Base: All (n=300).
SIZE OF THE BUSINESS
34%
33%
13%
9%
11%
1
2-9
10-50
51-100
100-499
22
REGION
QUE 24%
WEST 31% ATL 4%
ON 42%

23. 50%
21%
16%
6%
6%
< $250 K
$250 K - < $1 M
$1 M - $4.9 M
$5 M+
REFUSAL
23
RESPONDENT PROFILE
YEARS IN BUSINESSREVENUE
DECISION-MAKING
RE: PAYMENT METHODS
13%
26%
58%
3%
<5 years
5-10
11+
DK / prefer not to
answer
INDUSTRY
Base: All (n=300).
46%
23%
17%
9%
4%
2%
SERVICES
CONSULTANT
RETAIL
MANUFACTURING
WHOLESALE TRADE
HOSPITALITY
75%
25%
Myself
Shared with
myself and
someone else

24. THE TEAM

25. Lisa Covens
Vice-President
Communications and Public Affairs
O: 416-964-4107
lcovens@leger360.com
Ashley Simac
Research Director
Communications and Public Affairs
O: 416-964-4114
asimac@leger360.com
25
THE TORONTO PR TEAM
Kathleen Theriault
Research Technician
Communications and Public Affairs
O: 416-964-4112
ktheriault@leger360.com

26. @leger360 /LegerCanada /company/leger360 @leger360leger360.com