Canadian Retailer - Holiday 2015 - 15

I think Canadians are beginning to experience some tiredness,
some fatigue with what am I really getting [as a points collector]. It
takes me years to get what...a barbecue with most general rewards
cards? I think merchants have a relationship and some really great
reward programs already in play with their customers that if they
know they can save $3 million a year by shifting 3 per cent of their
payment volume to Interac, it can pay for these types of programs.
So we are very aggressive this year in offering this to retailers.
LEBLANC: There seems to be a leveling of the customer experi-

ence through technology. That brings us to Interac Flash. How
successful has the adoption been?

O'CONNELL: Merchant adoption has been fabulous and transactions are growing at over 150 per cent annually. So we are seeing that inflection point. It was
very touch and go there when credit was the only
option out there. Now we're seeing some merchants actually implementing with Interac Flash
debit as the only contactless they will offer. They
have seen what happened when they put that
convenience in on the other side. They were inadvertently encouraging consumers to use more
high cost credit, losing not only cash volumes,
which is their third lowest cost tender type, but
also their lowest cost, Interac.

It's in fact more secure, if you think about it
in many ways, than inserting your chip, because
there's no PIN and its pure EMV technology. We
implemented our Interac Flash technology at the
highest level of security possible. We have less
than one basis point of fraud, which is the best
anywhere in the world today. We have security,
we have speed to limit checkout lines, and we
have that convenience for your customer.
It's the merchant's choice, have a try and
shift that payment mix away from credit. And
when you're talking about Interac, you are talking about flat fees measured in pennies...it's a
pretty easy business case to make.

LEBLANC: If a merchant has wound up for what-

ever reason with a terminal that doesn't accept
Interac Flash what's their next step?

O'CONNELL: I am not aware of any merchant

"I [the consumer] want to get out of the store
with my new products or groceries as fast as I
can, and Interac Flash allows me to do that at
the cheapest price point."

terminals that aren't certified for Interac Flash.
It is the merchant's choice to tell their acquirer
which products they want to accept on those terminals. It rests with them.
And then you have to remember it's not just about the card
base. Interac Flash is also the basis for all future mobile transactions. Mobile is essentially a contactless transaction. If you
don't accept Interac Flash you're not going to be able to accept
all those consumers who want to pay with Interac using their
phone. Interac Flash is so critical for the mobile future because
that is the underpinning of all mobile tap payments. So I would
say if you haven't already, tell your acquirers that you want Interac Flash enabled on the terminals.
As I've said, all major terminals in Canada are technically certified to Interac Flash. There's no systemic reason not to. It's all
in the merchant's acceptance choice whether they want it or not.
Because consumers, what do they really want over anything?
Over points and rewards-where they are getting somewhat fatigued, but it's still a major factor-it is speed and convenience
and security. It's those three things. I want to get out of the store
with my new products or groceries as fast as I can, and Interac
Flash allows me to do that at the cheapest price point. And Interac Flash is extremely secure.
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Don't let the wool be pulled over your eyes. Because I've heard out there 'I don't know if Interac
will be in mobile. I don't know if Interac Flash will
be in this wallet or that wallet from the United
States.' And I'm here to tell you that Interac is a
critical component of all major wallet strategies,
because debit is essential to both merchants,
issuers and consumers, and Interac Debit is the
standard across the country. Whether its proprietary Canadian bank wallets, or device manufacturer wallets from around the world who want to
compete in Canada, Interac Flash is essential.
LEBLANC: Let's talk about security. What trends

are you seeing now and in years to come?

O'CONNELL: It will always be priority one.
Fraud mitigation and security of Interac has
always been a hallmark of ours and will continue

HOLIDAY 2015 | CANADIAN RETAILER

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