This year on Small Business Month, we’ve given our podcast a bit of an SEO and branding makeover. Introducing Moneris’ newest podcast bringing small business owners and entrepreneurs the tools, advice and—most importantly—the data you need to start that business or take your business to the next level. It’s just good business! That’s the podcast! It’s Just Good Business. In this October episode of Al speaks with Anurag Kar, AVP, Money Movement Products at Interac Corp. about the growing trend of Canadians taking on side-hustles and what that means to the workforce and the economy.
This year on Small Business Month, we’ve given our podcast a bit of an SEO and branding makeover. Introducing Moneris’ newest podcast bringing small business owners and entrepreneurs the tools, advice and—most importantly—the data you need to start that business or take your business to the next level. It’s just good business! That’s the podcast! It’s Just Good Business.
In this October episode of Al speaks with Anurag Kar, AVP, Money Movement Products at Interac Corp. about the growing trend of Canadians taking on side-hustles and what that means to the workforce and the economy.
Also in this episode:
Chapters:
Al Grego:
Today's small business landscape is evolving at an accelerated pace. Many of those changes have nothing to do with the product or service you provide. From your operations, to hiring, to marketing, to how you accept payments. We'd like to help you navigate that change to provide you with valuable advice from business leaders and real-world data to help you make sound business decisions. Why? Because if you succeed, we all succeed. It's just good business.
Hello everyone, I'm Al Grego, and this is the inaugural episode of Just Good Business. I'd like to welcome my co-host for this month, Sam Wong. Sam, welcome to Just Good Business.
Sam Wong:
Thank you, Al. It's a pleasure to be on again.
Al Grego:
Now you say again because this isn't your first time on the podcast with me.
Sam Wong:
That's right, I was on back in April when this podcast was called ShopTalk.
Al Grego:
Yeah, well, a lot's changed since then.
Sam Wong:
Yeah, I'll say. I like what you've done with this place.
Al Grego:
Well, thank you, a lot of work has gone into it. And as you know, back in August, I talked about how, according to our data, a change was necessary to make the show a little more SEO friendly.
Sam Wong:
By changing the name?
Al Grego:
Well, for starters, we also ran some search volume reports for different keywords we can use to improve our search rankings.
Sam Wong:
Okay, so it sounds complicated.
Al Grego:
Well, it doesn't have to be, and that's why next month we're going to learn a little bit more about the importance of SEO with one of our experts.
Sam Wong:
I'll be sure to listen to that one. By the way, I've got to say I really like the new artwork too.
Al Grego:
Well, thanks for noticing. I'd like to give a great big shout out to Kaylee Ellis who does all the artwork for both this podcast and Moneris's other podcast Yes, We Are Open. I never get a chance to give her props on here, so props to Kaylee.
Sam Wong:
Very well deserved. New music too?
Al Grego:
I picked it out myself.
Sam Wong:
Nice. So are you still going to have monthly themes?
Al Grego:
We are.
Sam Wong:
Let me guess, this month is Small Business Month?
Al Grego:
You guessed it. So Sam, let's get on with our theme. Do you know what a side hustle is?
Sam Wong:
I do. It's a way to make money outside of your 9:00 to 5:00 job.
Al Grego:
That's right. Do you have a side hustle?
Sam Wong:
Does parenting count?
Al Grego:
Well, it is a lot of work, but I'm going to say no.
Sam Wong:
Other than that, no then. Do you have a side hustle?
Al Grego:
Well, I have a band.
Sam Wong:
That's fun.
Al Grego:
Yes, but not very lucrative.
Sam Wong:
So your side hustle is more of a passion project.
Al Grego:
That is accurate. I think most musicians will agree, it's a win if the hobby can just pay for itself. But according to a recent survey conducted by Interac, more and more Canadians are taking on side hustles.
Sam Wong:
Interesting, I'd love to learn more about that.
Al Grego:
Well, it just so happens I spoke to someone from Interac about their survey.
Sam Wong:
Great, let's hear it then.
Al Grego:
Hey, I'm the one who tees up the interviews.
Sam Wong:
Sorry, I got excited about the new format.
Al Grego:
I'll let it slide this time. Yes, this month's special guest is Anurag Kar from Interac and here's my chat with Anurag.
Our special guest this month is the AVP of Money Movement Products at Interac, Anurag Kar. Welcome to Just Good Business, Anurag.
Anurag Kar:
Thanks, Allan. Thank you very much for having me on the podcast.
Al Grego:
It's hard to believe that anyone listening to this would not know what Interac is or does, but maybe you can give us a quick overview of Interac.
Anurag Kar:
Interac's a payments network that was started back in the '80s with the financial institution, and they came together to essentially have the ability to use the ATM network across the country. Fast-forward to the late '80s, early '90s where checks were going by the wayside at the retail locations, and debit cards were coming into play, Interac also implemented the debit infrastructure that allowed merchants and businesses to receive debit payments, and connected them with financial institutions. And then you fast-forward to the early 2000s, the Interac product suite started expanding a little further from just commerce payments of debit and an ATM access to also having money movement capabilities. And born out of that was the first brand of the money movement product, which was the Interac email money transfer.
Al Grego:
Right.
Anurag Kar:
And then over the years, that has been rebranded to Interac e-Transfer, and now us as an organization, not only do we have a suite of payments products and capabilities for the market, but we also have consumer verification solutions such as digital ID products and that's under the brand and the moniker of Interac verification services. So in the past 30 plus years, we have started as a payments company, but we are now a payments and a data and a digital ID company, and that's our role in the Canadian financial services ecosystem.
Al Grego:
Yeah, it's hard to imagine a more ubiquitous logo. It's everywhere, right? And you guys are everywhere. So I mean it's Small Business Month in October, and Interac has come out with some really great findings about Canadian entrepreneurs so can you tell us a little bit about the research and what it revealed?
Anurag Kar:
The Interac research looked at Canadians who pursue entrepreneurship in a variety of ways. A lot of Canadians, not only are they looking at starting their own businesses, but a lot of their own businesses start off as a side hustle.
Al Grego:
Right.
Anurag Kar:
So from freelancers to small business owners where what we actually look at as side hustle businesses are businesses with let's say four or less employees. And at that time when these businesses are starting, they start having a lot of challenges to get established in today's environment. So what our research looked at and explored was what are some of those challenges that these sole proprietors or entrepreneurs or side hustlers, what are those challenges they're facing? What are the many things that they worry about as they trying to grow their business and get established, and they're still usually working a 9:00 to 5:00 job.
Al Grego:
Right.
Anurag Kar:
What are the challenges and the problems they're facing? And so our research really looked at where are the people looking for assistance, guidance, and where are their pain points, and essentially establishing their business and growing up.
Al Grego:
Well, I can certainly understand the whole concept of a side hustle. I mean, I've got a band on the weekends, I've got my own podcast at home. I mean many times, the side hustle is the passion project or is that job that you're really passionate about but maybe doesn't necessarily pay the bills. And given the state of inflation and the pressures in the economy right now, it makes a lot of sense. So what does your research show as to why more Canadians are taking on these side hustles?
Anurag Kar:
Our survey found that almost half, 44% of entrepreneurs, these set of side hustles out of financial necessity to make ends meet. Like you mentioned Allan, it's the economic pressures that they're feeling, but as you also noted, it is a lot of passion that goes into it. So the reward for their efforts, it's not always just financial to make the ends meet, but it is actually driving that passion, and essentially attaining what they want to do on a personal justification level. And what our data reveals is the 9:00 to thrive effect in action instead of our 9:00 to 5:00.
We really look at that 9:00 to thrive where nearly six in 10 respondents in the survey, they said that their side hustle turned out to be more fulfilling than they were expecting. You start off with one perspective, but slowly, slowly as you get into it, you start realizing that yeah, this is something I enjoy way more than my day-to-day job. And what's even more apparent is that 76%, they intend to continue their side hustle alongside their main job and almost two in 10 plan to go all in. And so it's not that just they want to continue as a side hustle, they actually want to make it a regular feature of their professional lives or go all into this. That started off as a passion project.
Al Grego:
I think that's the first time I've ever heard 9:00 to thrive, I really like that. For sure, the fulfillment part of it is an important part I think of any side hustle if you're doing it not just for financial gain, if it's a hobby or something you just enjoy, right?
Anurag Kar:
Yeah, that's it. What the internet survey does show is that some take pride in their very memorable first sale, up to 22% responded as saying just getting that first sale is very fulfilling for them, but others is achieving profit or paying out their first employer or staff with their salary. So what we're learning is the fulfillment is not only in just standing up the business and operating it, but it's the different aspects of the business as they're standing it up, and as they're going through the different motions of running their business, they're gaining quite a bit of fulfillment at operating it. And this is where Interac e-Transfer, it plays quite an important role in supporting these milestones where entrepreneurs, not only are they paying, but they're also using the service as a medium to get paid.
Al Grego:
That makes complete sense. I mean actually, and this is a true story, just this summer, for the first time I got paid for a gig via e-Transfer because up until.
Anurag Kar:
That's awesome.
Al Grego:
Up until this summer, it was always check. And let me tell you, the e-Transfer is easier because I got the lump sum from the bar owner, and then I was able to then pay the band members separately with e-Transfers as opposed to having to go deposit the check, wait for it to clear. I mean these days you don't have to wait for it to clear, but you know what I mean. It's so much faster now.
Anurag Kar:
That's exactly it, and actually even for think of the bar owner, right? Sometimes when they're managing their cash on hand, they're usually waiting for you to go cash a check-in so the cashflow is maintained on their side where when they're sending e-Transfer, they have confirmation that Allan, you have the money. It's proof, it's out of their account, they have proof that you've received it, and you're good to do whatever you want. So it actually not only is good for you to have access to a digital payment that then you can go and pay your bandmates, but also for the bar owner themselves where they're managing a cashflow in a little more streamlined manner.
Al Grego:
Now in terms of some common challenges that entrepreneurs might face when starting out, did your survey show any information on that?
Anurag Kar:
Yeah, so the Interac survey, it reinforces the challenges that side hustles and small businesses, they continue to remain a strong part of the Canadian economy, but they feel that they lack the financial confidence and the knowledge necessary to successfully grow and scale their business when they're first starting out. They don't feel that they get access to the resources to make those financial business decisions to operate their business. Only 15% of Canadian entrepreneurs, they felt that they had high confidence in their abilities to manage their business' finances from day one. And nearly half of the entrepreneurs, 49% of them had challenges and finding the right information or advice for growing their business and so that led to them lacking the financial confidence or accessing financial tools for just tracking their finances.
Al Grego:
So how's Interac helping to support in overcoming those challenges?
Anurag Kar:
Entrepreneurs have long been and will continue to be a driving force behind the Canadian economy, and on the Interac e-Transfer side, a lot of our growth has actually been coming from small businesses and business customers where 25% year-over-year growth and about a quarter of the total traffic on the e-Transfer service across the country is actually by businesses, predominantly small businesses. And so we've not only all had the payment capabilities for these small businesses, but we recently launched the Interac From Dollar One tool and a guide to help bridge this gap between financial confidence and providing the resources to the entrepreneurs for making their first dollar and beyond. We're trying to provide the educational components and the resources to these businesses to leverage for their own financial confidence.
Al Grego:
You mentioned From Dollar One hub, can you speak a little bit more about that?
Anurag Kar:
It's predominantly a educational hub where it provides the tips on beating burnout alongside practical instruction such as the role Interac products can play in them meeting their key milestones such as making their first sale or generating profit. But it's more than just payments, it's more like a educational toolkit that allows them to basically get the knowledge required for them to operate and build their business. There is definitely payment support and details there, but it's also more than just payment related information as resources. It's more advice for business owners for them to essentially get paid faster and pay and how to stay in charge of their small business as they're maybe paying vendor agreements or how to avoid late fees. It is providing them those little simple advice at just managing their day-to-day business.
Al Grego:
Anurag, if I'm a small business owner or an entrepreneur and I want to learn more about this report or about what Interac can do to help me realize my side of hustle, where would I go?
Anurag Kar:
We always encourage any sorts of businesses, individuals to refer to the hub on interac.ca. There is a lot of good tools, articles, advice, therefore increasing their knowledge or understanding different industries and what are some of the support or some messages that they're hearing from peers is very reflective of the overall national usage of payment products. But at the same time, if there's something in details that a small business wants to know about, we always encourage to have a conversation with your financial processor or financial institution. They are the ones who are there to help you grow and scale that business. So have a conversation, always do the research. We have a lot of good resources on interac.ca, but if there's anything to go in details about, have a conversation with your payment financial processor.
Al Grego:
Thank you so much for your time today, Anurag.
Anurag Kar:
Thank you Allan, appreciate you having me on.
Al Grego:
That was Anurag Kar from Interac, and again, the address for their From Dollar One educational hub is interac.ca/dollarone.
Speaker 4:
Good news for business owners. Moneris has partnered with Wix to launch an all-in-one e-commerce solution built to help you grow and scale online. With the new Moneris Online, you can combine Wix's website builder with Moneris payment processing expertise to effortlessly build an online store that is optimized for business and design to dazzle. Launch your online store today and enjoy no monthly fees for three months, and eight free hours of website creation support, a savings of up to $764. To learn more, visit go.Moneris.com/monerisonline.
Al Grego:
All right, now it's time to look at the data with our resident expert on consumer spending data, Sean McCormick. Sean, how are you doing today?
Sean McCormick:
I'm good Al. Ready to talk some data.
Al Grego:
This month we're going to going to talk about city spend data with cities across Canada. Where would you like to begin?
Sean McCormick:
We're going to talk about more or five different cities. So let's start with Toronto, just picking out some interesting data points from these cities. Looking at August spend, service station spend was up 31% year over year, so that's versus August of 2022. A lot of that increased driven by increased transaction count, so people going to the pump more often, maybe buying a little bit less fuel each time because it's a lot more expensive than it was this time last year, but definitely going to the pump more often. So a lot of that actually might be fueled by the return to office.
Al Grego:
Sure.
Sean McCormick:
In a lot of parts of the country. Well, all parts of the country, the return to the office is taking hold and people are needed to fill up more often.
Al Grego:
And maybe the price of fuel as well, reminding me to my teenagers when I might only put in $5 a time in the tank in order to get me to the next stop.
Sean McCormick:
How old are you, Al?
Al Grego:
Yes, I know.
Sean McCormick:
Five bucks.
Al Grego:
Well, there was a time. There was a time that might've given me a half tank.
Sean McCormick:
Looking at spending from Montreal, year over year spend volume in May. A couple of categories with notable decreases. Year over year spend volume for apparel was down 20% in May, department stores were down 30%, and used merchandise stores so pre-owned clothing down 29%.
Al Grego:
Interesting.
Sean McCormick:
Out in Vancouver, year over year volume in August. A few categories with notable decreases, restaurants were down 3% across the board. Fast food drove a lot of that decline, the fast food segment was down 10% on its own. In Calgary, how about this? Golf courses year over year in August, dollar volume was up 45%.
Al Grego:
Wow, that's huge.
Sean McCormick:
Yeah, huge. And spend at discount stores was also up 14%. Again, that's year-on-year numbers for the month of August.
Al Grego:
What about up in Edmonton?
Sean McCormick:
Edmonton, some interesting increases. Auto parts and accessories up 54% year over year. And that's a really interesting one. The cost of ownership on a car for repairs, parts, labor, everything is going up substantially if you've taken your car in to get fixed anytime lately. And as I mentioned, year over year spend in August for auto parts and accessories up 54% and similar to Calgary discount stores saw a massive increase as well year over year in August up 19%.
Al Grego:
Probably.
Sean McCormick:
In August of 2023.
Al Grego:
Probably again thanks to inflation, people are looking for those discounts.
Sean McCormick:
Absolutely. I've talked about this before, but human beings are very adaptable creatures, Al. And we've only got so much money to spend and I guess the fortunate part for a lot of Canadians, not all Canadians, is we are still able to move some chips around the poker table a little bit. It might not be comfortable, but we are able to do it in a lot of cases and Canadians are definitely in that mode right now.
Al Grego:
Thank you so much for your time today, Sean.
Sean McCormick:
Thanks, Al.
Al Grego:
That was Moneris's Director of Business Development, Sean McCormick. If you like his insights into spending data, you might want to catch the latest Canadian consumer behavior webinar hosted by yours truly and featuring Sean's expert insight. You can find the webinar on our new data services website at monerisdataservices.com.
This month, we have a question for one of our experts, and we're joined by Ben Maheux, product line manager from UEAT. Ben, thank you so much for joining me today.
Benoit Maheux:
Al, it's a real pleasure to be here.
Al Grego:
The question I got here from one of our listeners is I've seen ordering kiosks in larger restaurant chains, but I can't possibly afford something like that for my independent restaurant, can I? Now, just to add to that question, and I agree, you walk into any large fast food restaurant and right away you have these massive screens right in front of you where if you don't want to talk to somebody, you can order and pay at the screen and then wait for your order. That's great, but these are national chains, so how does a mom and pop restaurant, how can they take advantage of something like this?
Benoit Maheux:
Good point. And by the way, I'm a big fan of those definitely, but you don't necessarily need that 55 inch massive one.
Al Grego:
Right.
Benoit Maheux:
As a smaller business owner, you can come up with the basic iPad solution. To me, this is fairly small, but you can also have a countertop, something you fix on the wall, thirty-two inch, and look for those renting models. To me, right now, we all know it's a challenging period in terms of cash flow. I've just seen that most of the different restaurateurs are challenging and trying to reimburse their Canadian loan so it's still quite challenging. Why not look for a rental model? Look for a solution that doesn't need that upfront cash flow. So to me this is fairly achievable, just think what do you need? And try to keep that money in your pocket as much as possible.
Al Grego:
In terms of cash flow for a restaurant, there's also some really great upselling features that you can add to a kiosk.
Benoit Maheux:
Absolutely. So the kiosk will always offer you that extra croissant or [foreign language 00:20:12] that you want on top. You will never be shy of asking that question, that's for sure. And you're going to be taking away all of those mistakes by not properly entering the order because that's actually the customers who's entering those orders.
Al Grego:
Yeah, I mean even thinking back to when I was younger and I was working in pizza restaurants and we're always saying, "Hey, don't forget to push that garlic bread," or whatever, and sometimes you forget or sometimes the messaging isn't the same every time so this fixes that problem.
Benoit Maheux:
Absolutely. The whole idea is to automatically, when you order something, push for the great suggestion that fits. This increases the ticket size, which is a drastic way of improving the profits, and we've seen a 10%, 15% increase on ticket size. And to me, these are definitely important profits that you're leaving on the table.
Al Grego:
You just took my next question. I was going to say, you guys actually have numbers, you already have statistics on how this is increasing ticket size and we love talking about data here. So your data shows that these kiosks do actually increase ticket size.
Benoit Maheux:
Absolutely, and it's not only the question. So the first hypothesis was that okay, we're asking always the questions, we're seeing those 7% increase, but what we've observed is that most of the people are shy to take that extra size or adding that extra large, but while you're in front of a machine, you won't be shy in taking that delicious dessert in the end, so this also helps quite a lot in improving the ticket size.
Al Grego:
Okay, so if I have my family restaurant that I'm running and I'm thinking about implementing one of these kiosks, what would be my first step?
Benoit Maheux:
So first step is definitely looking into how can I arrange my different hour, how can I benefit from that? And one thing that people tend to focus, it's 24 hours, it's fairly straightforward in terms of process to help you out. We're going to be mapping the different floor plan, where do you want to put, do you want 1, 2, 3? How do you want to manage that all? And we've been lucky enough to work with two key partners here at UEAT. So we work with Samsung, which is the leader in terms of hardware providing McDonald's and those Tim Hortons, and we also work with Moneris providing technician all over Canada. So you have hundreds of technicians being able to support you by deploying the kiosk and supporting.
Al Grego:
So I spoke to Sean earlier, and he's talking about how in some cities in the country, restaurant spending is down and I mean inflation is affecting us all. So how might something like this help?
Benoit Maheux:
So definitely will help the restaurateur, that's for sure. Customer will benefit from the speed, so it's faster. You can clearly see pictures, beautiful picture of the menu, and discover the menu at your own pace. So definitely for the customer, it's faster and you have a better idea of the menu. But from the restaurateur perspective, I think it helps quite a lot because inflation, you're absolutely true attempt to go up and people are fleeing more and more the sit-in, dine-in kind of restaurants and are trying to spend their money more onto the quick service, fast casual. And that's where I see a great fit for those contactless or kiosk solution. I think those are going to be benefiting quite a lot. You can have a kiosk speeding things up, removing mistakes when you're putting the order in and also improving your ticket size. I think we're all benefiting from this solution.
Al Grego:
If I'm a restaurateur and I'm interested in learning more about these kiosks or the kiosk solution, where would I go?
Benoit Maheux:
So definitely you can reach out to us throughout the website at UEAT to can call anyone or his agent as well. So just contact Moneris and UEAT we'll be happy to help you out, it's been part of our DNA to help small businesses thrive, and we really want to make those tools available to the broader audience.
Al Grego:
Thank you so much for your time today, Ben.
Benoit Maheux:
My pleasure, Al.
Al Grego:
That was Ben Maheux from UEAT. To learn more about how UEAT is revolutionizing the customer experience in restaurants, visit their website at UEAT.io.
And now for a quick look at our calendar for October, I'm joined by Daniel Stranges from our events team. Daniel, thank you so much for joining me today.
Daniel Stranges:
Thanks for having me, Al.
Al Grego:
So I mean we all know October is Small Business Month. I'm sure we have a list of events that we're doing around Small Business Month.
Daniel Stranges:
You are absolutely right on that. As a proud partner of small businesses across Canada, Moneris has partnered with Ronald McDonald House Charities Canada to showcase just how big a small business can be in their community. So throughout the month of October, Moneris alongside our small business partners are donating $200,000 to RMHC Canada. The generous spirit of Moneris and Canadian small businesses will enable 1,190 nights of comfort to families with sick children, ensuring that they could remain together and close to the care that they need.
Al Grego:
And that money is going to be donated across Canada, not just in one specific location.
Daniel Stranges:
That's correct, across all of the Ronald McDonald House locations across Canada.
Al Grego:
Amazing. What else do you have?
Daniel Stranges:
Some important dates to keep in mind. On October 24th, Moneris is proud to partner with CNIB's Connecting the Dots Conference, which is taking place in Toronto. And the event aims to bring together early stage entrepreneurs to build out their networks, learn from industry experts, and ultimately drive their businesses forward.
Al Grego:
Very cool. Anything else?
Daniel Stranges:
On October 26th, we are proud to sponsor the RMHC Great Games Challenge and their annual trivia game fundraiser that'll take place downtown Toronto at TD Music Hall.
Al Grego:
I love trivia.
Daniel Stranges:
We do.
Al Grego:
What else do you have?
Daniel Stranges:
Again, on October 26th as well, Moneris is proud to partner with Startup Canada Tour in Brampton, and Moneris's very own Scott Tabachnick will be moderating a panel called On the Money, Unlocking Financing Strategies for Early Stage Startups. And during this panel, we've got industry experts and successful entrepreneurs sharing their invaluable insights on securing financing and funding for your startup to grow.
Al Grego:
That's a lot of stuff to look forward to. If people want to learn more about any of these initiatives, where would they go?
Daniel Stranges:
You're right, Al, there is a lot going on. So the best way to keep on top of this is to make sure you're following our social media channels.
Al Grego:
Okay, well thank you so much for your time today, Daniel.
Daniel Stranges:
Thanks for having me, Al.
Speaker 8:
Coming up on season five of Yes, We Are Open podcast. I head east to Atlantic Canada, making stops in Newfoundland.
Yes, we're open.
Nova Scotia.
Yes, we are open.
And Prince Edward Island.
Yes, we are open.
Eight new Canadian businesses with eight new stories. First episode drops October 2nd. Available wherever you get your podcasts.
Al Grego:
So that's all we have for this month, Sam, what'd you think?
Sam Wong:
I think I need to find myself a real side hustle. What about you?
Al Grego:
I think it's cool that kiosks are becoming more affordable for smaller restaurants.
Sam Wong:
So what's coming up next month?
Al Grego:
Well, next month, as I mentioned, off the top, we'll be talking about the importance of SEO for your business. So if you're listening right now, and you have any questions about SEO or any other business related topics, you can email us at podcast.moneris.com, and we'll try to answer them in future episodes. Sam, thank you so much for co-hosting.
Sam Wong:
Thank you for the invite, Al. Anytime.
Al Grego:
On behalf of Sam, myself, and the rest of Moneris, it's Just Good Business saying thank you for listening, and see you in November.