Canadians on the Leading Edge of the Online Retail Payment Revolution

Craig Patterson
Craig Patterson
Now located in Toronto, Craig is a retail analyst and consultant at the Retail Council of Canada. He's also the Director of Applied Research at the University of Alberta School of Retailing in Edmonton. He has studied the Canadian retail landscape for the past 25 years and he holds Bachelor of Commerce and Bachelor of Laws Degrees. He is also President & CEO of Vancouver-based Retail Insider Media Ltd.

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Photo: http://ellabb.comPhoto: http://ellabb.com

Photo: http://ellabb.com

August 13, 2014

A recent report from Forrester Research predicts that Canadian online retail spending will climb to $33.8 billion in 2018 from $20.6 billion in 2013, an annual increase of over 12 percent. The growth of online retail spending in Canada, although impressive, has been constrained by three main factors – high shipping costs, the availability of preferred payment methods and security. That’s where companies like Optimal Payments, who process online payments for retailers, play an important role in addressing the needs to support Canadians’ ever growing appetite for online shopping.


Montreal-based luxury brand Mackage is a loyal Optimal Payments customer. Photo: Mackage. Montreal-based luxury brand Mackage is a loyal Optimal Payments customer. Photo: Mackage. 

Montreal-based luxury brand Mackage is a loyal Optimal Payments customer. Photo: Mackage. 

Through its NETBANX® payment gateway and acquiring service, Optimal Payments offers customers a variety of payment options and ensures protection from both fraud and security breaches.

An important component of NETBANX’s services is its proprietary Risk Rules Engine, a solution that provides a range of flexible rules to meet the needs of a broad range of etailers, from volume-priced to high-end, thereby making it an integral part of its customized fraud solution. Once a merchant begins processing transactions, the platform’s systems are continuously refined to ensure maximum approved transactions and minimum fraud. Optimal Payments provides additional safeguard tools such as address verification, negative database matching, velocity monitoring, Internet Protocol (IP) and Bank Identification Number (BIN) validation, device intelligence and tokenization. 



The Company has assisted a number of Canadian etailers tackle the issues of preventing fraud and meeting the needs of a rapidly expanding online market. Mackage, a Montreal-based company specializing in the design and manufacturing of luxury outerwear, chose Optimal Payments to provide a fully integrated payment and fraud-management solution. Since the launch of their online store in September of 2013, Mackage has minimized their losses from fraud while providing their customers with an enhanced checkout experience. In only two years, etailer Beyond the Rack has expanded from a standing start to more than $100 million in sales and was recently recognized as North America’s fastest growing online retailer. Beyond the Rack selected Optimal Payments to handle its online payments as well as its credit and refund processes. “We’ve seen a significant expansion in our business, and Optimal Payments has played an instrumental role helping us drive that growth,” says Yona Shtern, CEO, Beyond the Rack, “We could not have done it without Optimal Payments’ support or their NETBANX service: they’re fully integrated into our finance system and shopping cart, and they’re an integral part of our value chain.” 


Beyond the Rack: North America's fastest growing online retailer. Beyond the Rack: North America's fastest growing online retailer. 

Beyond the Rack: North America’s fastest growing online retailer. 

Optimal Payments is expanding its ecommerce offerings and network. In the first week of July, the Company announced a significant expansion into the U.S. online payments market with the acquisition of Meritus Payment Solutions, a California-based payment processing firm with a U.S. merchant portfolio of 8,000 high growth small and medium businesses and established U.S. bank relationships. Meritus’ strong stakeholder relationships, multi-channel sales force, established presence with small- and mid-sized businesses in the U.S. and entrepreneurial spirit make them an ideal acquisition for Optimal Payments. This combination brings together two of the fastest growing companies in the dynamic online payment processing sector.  This larger network and established bank relationships will enable Optimal Payments to offer online shoppers more payment options.  


President and CEO Joel LeonoffPresident and CEO Joel Leonoff

President and CEO Joel Leonoff

Optimal Payments processes approximately US $15 billion annually in more than 200 countries and territories with over 100 types of payment and multi-currency options. The Company is led by President and CEO Joel Leonoff, a Montrealer. In 2000, Joel was recognized by the Globe and Mail’s Canada Top 40 under 40 award, honouring Canadians for their vision, leadership, innovation, achievement, and community involvement. Joel was also named CEO of the Year at the 2014 U.K. Stock Market Awards which rewards companies and individuals that are judged to have contributed the most to shareholder value. Earlier this year, Optimal Payments was selected by its customers as the Best Ecommerce Platform/Gateway Award at the Card-Not-Present (CNP), a testament to the Company’s commitment to best-in-class service. In addition to offices in London, Cambridge, Isle of Man, Sofia and New York, Optimal Payments has three rapidly growing offices in Canada — Montreal, Calgary and Gatineau, Quebec. 

This is a great Canadian success story – a digital payment company making it easier and safer for Canadian etailers to conduct business regardless of whether they are selling their products and services domestically or internationally.   

Today’s retail news from around the web: August 13, 2014

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