Canadian economy can save $32 billion with e-payment and e-invoicing

Canada’s economy could get an annual $32-billion boost with a more determined shift to digital payments technology. According to a new report a modern Canadian payments system will lead to far greater choice, efficiency and convenience for consumers, businesses, governments and organizations, as well as a safer, more secure system.

Potential savings include 60-80 per cent reduced invoicing costs and a one to two per cent of revenue cost reduction by switching from paper to e-invoices.

Banks preventing innovations in Canadian e-invoicing

The review attributes Canada’s failure to keep pace upon “stagnation” in payment systems by Canada’s major banks and other key institutions.

The authors of the report stated that “Their [banks] interests are best served by keeping at bay new entrants to the system, the very entrants who would bring the innovations that Canadians need,” according to the report.

Recommendations for Canadian multi billion savings

The recommendations for government action include:

  • Implementation of an “instantaneous” electronic invoicing and payments for all government suppliers and benefit recipients.
  • Partnering with the private sector to create a mobile device-based “ecosystem.”
  • Leading the development of digital identification and authentication systems to support the system while protecting privacy of citizens. Absence of a simple, secure method of authenticating identities online means many online transactions such as purchases or bill paying transactions are unnecessarily “laborious.”
  • Creation of a new payments industry governing body as well as a public agency to scrutinize it and to work toward overhaul of existing systems.

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