A. Dexit’s opportunity : becoming the electronic payment standard for low value transactions in Canada
The electronic payment industry in Canada is dominated by credit and debit card payement systems with a growing market size of $366.4 billion in 2005. But this system doesn’t allowed customers to pay for small-ticket purchases. Furthemore, Canadians are the world’s heaviest users of electronic payment systems.
Dexit, a canadian company from Toronto set up in 2001 by Renah Persofsky, who is also the chief executive officer of the company, came up with a brilliant idea. This brand wants to take the opportunity to provide customers who are used to paying with debit and credit cards, an alternative to cash. Dexit proposes a new way of easier and faster (less than 3 seconds) payement for low-value purchases which provide benefits for both customers and retailers. Customers could access accounts directly, there's less chance for error in a transaction, and they don't have to carry cash or order extra personal checks.
Dexit provides an electronic payment facilitation service to allow consumers to conveniently and quickly pay for goods and services as well as manage their cash more effectively.
Dexit althought offers merchant’s advantages like increasing order size, reduced customer’s walks aways, improves cashier efficiency, lowers cash-handling costs, avoids counterfeit money, and also lowers cash counting and depositing charges.
Dexit will not have any direct competitors, but “gift cards” which are not very convenient because of their limitations to specific brands and timing.
Thanks to two competitor’s faliurs (Mondex and VisaCash) Dexit learned that a high cost of hardware, as well as inconvenient, costly payment processes would keep away cust ...