Worldpay, a UK payments processing company, is launching into Canada through a partnership with a local bank, the Peoples Trust Company, as it accelerates its global expansion plans.
Through the partnership, Worldpay gains a domestic licence for its customers to accept card payments in Canada, ft.com reports. Until now, businesses using Worldpay would have to undergo a cross-border transaction to accept a payment in Canada.
The partnership has enabled Worldpay to strike a deal with Canadian company Rakuten Kobo, a seller of ebooks, to manage its online payment processing. Rakuten Kobo already works with Worldpay in other markets, including the US, Europe and Japan.
Worldpay expects to replicate this deal with other customers that it has previously been unable to serve in Canada. In 2015, the UK payments processor opened offices in India and San Paolo and is planning to move into other countries in the coming months. It said Canada was an attractive market for digital payments, pointing to its 12% compound annual growth rate.
In 2015, Worldpay predicted that digital wallets would become the world’s most popular payment method in the coming years. It forecast that USD 647 billion of consumer spending with businesses would be made using digital, or ewallets, in 2019 compared with an estimated USD 577 billion through credit cards and USD 412 billion via debit cards.
The group said Canada was at the fore of cross-border digital shopping transactions, with 75% of Canadian shoppers purchasing from US websites. The move enables Worldpay’s customers, who use the payments processor in other countries, to use the same system for the Canadian market.
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