January 8, 2019 Admin

Infrastructure Investments and its Affect on Merchant Services

Royal Debit is the premier merchant service and payment processing service provider in Canada and we are excited to continue offering innovative, reliable and secure payment solutions to our Canadian merchants. The technology landscape is always changing, and we strive to keep you and your business ahead of the curve.

There are plans to invest in the transport infrastructure in an effort to make international access to Canadian markets easier. These improvements will affect retail merchants large and small in a positive way. In an effort to promote Canada as a major player in the domestic and international market, the plan seeks to encourage massive growth for commerce and trade.

In addition to these efforts, small business taxes have been slashed to 9% in an effort to help raise spending levels. It’s anticipated that infrastructure investment will increase revenue thanks to better transportation, communication, and easy payment facilities.

How Will Spending Help The Canadian Economy?

The planning and infrastructure projects paired with the efforts by the government will work as a foundation for allowing the expansion of already existing entities. These will expand to larger channels of distribution and further investment into innovation, environment, and technology.

How Will This Investment Affect Canadian Merchants?

There is no way to know the full impact these changes will have, but the potential for serious growth in the transportation, manufacturing, and retail industries of the Canadian market is certain. The commercial stimulus and positive commerce policy should allow for a steady rate of expansion that will prevent a serious flux in inflation.

The demand for consumer goods and retail services are always guided by the rate of inflation. Lower interest rates increase equity prices and capital amounts for those seeking to invest. When rates are lower, investors are more prone to offer discounts on the cash flow of these specific investments. The small shift in interest rates will also have an influence on the cost of borrowing for commercial development, properties, and spending on a national level.

By maintaining a steady but low rate of inflation, merchants in Canada will be further encouraged to invest more freely and will be less restrictive in their spending choices. This, in turn, will motivate growth and long-term investment into the nationwide economy. Overall, more jobs will be created which will improve the overall standard of living and employment rates.

If you have more questions about this topic, then please do not hesitate to give Royal Debit a call at (416) 986-3342!