“I’ll just e‑transfer you.” That phrase has lived in group chats and roommate conversations for a long time. But now, that same behaviour is quietly sneaking into the online shopping space where customers are using pay by bank solutions such as Interac e-Transfer to buy a new laptop or purchase those pair of concert tickets.

This is not about ditching cards tomorrow, but rather about the rise of alternative payment solutions. It is about recognizing that your customers already use banking apps and asking: why not let them pay the way they already move money every day?​

DOWNLOAD NOW: Canadian Payment Trends Report 2026

Why Is Pay by Bank Gaining Momentum in Canada?

The Canadian Payment Trends report shows that online transfers, including Interac e-Transfer®, have the fastest five-year growth in both payment volume and value.

In 2024 alone:

• Online transfer payments grew 16% in volume and 23% in value
• Canadians made 22.5 billion payments worth $12.2 trillion overall

Interac e-Transfer usage is up 175% over five years. That tells a simple story: sending money directly from a bank account is now everyday behaviour. Bringing that behaviour into checkout is the next logical step.

Why Does Pay by Bank Feel Safer to Shoppers?

For most customers, the decision is not “Do I like pay by bank as a concept?” It is: Do I feel safer doing this than typing in my card number?

The report highlights:

• 58% of Canadians view Interac e-Transfer as secure, compared to 41% for PayPal transfers
• 76% worry about fraud when buying online

Pay by bank via Interac e-Transfer hits a trust sweet spot:

• The flow is familiar: click, open banking app, approve
• Authentication happens using the same bank-level controls they already trust
• No card numbers or stored credentials are involved

For the customer, it feels like a natural extension of how they already move money.

What’s Driving Merchant Adoption of Pay by Bank?

On the merchant side, pay by bank often starts as “one more option” and quickly becomes a performance lever.

The report outlines several benefits:

• Potential savings of up to 50% on payment fees compared to credit cards in some scenarios
• No chargebacks and lower fraud exposure
• Faster, more predictable cash flow with real-time or near-real-time settlement
  
  

This is especially valuable for high-ticket purchases, where card limits and declines are common even when the buyer genuinely wants to complete the transaction. In those moments, pay by bank becomes a reliable fallback instead of a dead end.

What’s Actually Holding Pay by Bank Back?

One of the most interesting findings in the report: 60% of customers say they would use pay by bank if they were given a clear description of the service.

That means the barrier is not resistance; it is education.

A few small changes can unlock adoption:

• Add a simple explanation: “Pay directly from your bank. No card needed. You’ll approve this payment in your banking app.”
• Make it clear that you never store banking credentials
• Reinforce that everything happens inside the customer’s own bank environment
  
  

When shoppers understand what is happening and why it is safe, trying pay by bank feels like a low-risk choice.

DOWNLOAD NOW: Get the full Canadian payments picture

FAQs  

Q1. What is pay by bank in simple terms?

It lets customers pay directly from their bank account at checkout, usually by confirming the payment in their banking app instead of entering card details.​

Q2. Why is Interac e‑Transfer so central in Canada?

Interac e‑Transfer usage is up 175% over five years and is widely used for everyday transfers, so adding it to checkout builds on behaviour Canadians already know and trust.​

‍Q3. Is pay by bank secure enough for eCommerce?

‍Yes. 58% of Canadians see Interac e‑Transfer as secure, and payments are authenticated and processed through the customer’s own bank with bank-level security.​

Q4. Does pay by bank replace cards?

In most cases, it complements them by supporting high‑value or high‑friction transactions, reducing fees and giving customers a trusted alternative when they do not want to use a card.​

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