Darrell MacMullin has seen the rise of a empowered consumer marketplace that is emboldened by all the tools at their disposal. The challenge for retailers, he says, is how to properly interact with them.

MacMullin, PayPal's managing director for Canada, says the time when using his company's electronic payment system was seen as a novelty is gone. Today's retailers, he says, need to embrace the entire commerce experience from a digital perspective, as customers have become more accustomed to e-commerce tools.

"Merchants have been reluctant to make a technology bet, specifically with e-commerce being such a small sliver," said MacMullin. "But I think they are realizing now though that the way innovation is changing. If you are not fishing where the fish are so to speak. Consumers are looking online for pricing, looking at real-time inventory."

Watch the full interview above