The Rise of Pay by Bank: Why Canadians Are Choosing It Over Credit Cards

Canadian consumers are shifting away from traditional payment methods, with more people looking for secure and flexible ways to pay online. One trend that stands out in 2024 is the rise of pay by bank solutions—a payment method that allows consumers to complete transactions directly from their bank accounts.

While credit cards remain popular, more shoppers are turning to pay by bank because of its speed, security, and ease of use. In this blog, we’ll explore why Canadians are making the switch and what businesses can do to meet this demand.

Why Credit Cards Are No Longer the Default Choice

For years, credit cards have been the go-to payment method for online transactions. However, consumers are becoming more aware of the downsides, including:

• Security risks: With nearly half of Canadians reporting online fraud attempts, many prefer a safer alternative. (Source: TransUnion Canada Analysis, 2023)
• High fees: Credit card processing fees add to the cost of online purchases, leading some consumers to seek lower-cost options.
• Complicated payment processes: Shoppers don’t want to enter long card details or worry about expired cards.

How Pay by Bank Provides a Better Experience

Unlike credit cards, pay by bank connects directly to a user’s bank account, offering several benefits:

• Security: No need to enter card details, reducing the risk of fraud.
• Speed: Instant or near-instant transactions, keeping checkout seamless.
• Flexibility: Works with 100% of Canadian banks, making it widely accessible.

Consumer Sentiment: Are Canadians Ready for Pay by Bank?

Survey results show that Canadians are open to adopting pay by bank if they understand how it works:

• 60% said they would try pay by bank if there was a clear description of the process.
• 80% said they would use pay by bank if credit cards were not available.

This data suggests that educating consumers on how pay by bank works can significantly boost adoption.

How Online Businesses Can Offer Pay by Bank

Merchants looking to improve checkout experiences can integrate pay by bank options like Interac e-Transfer and solutions such as Clik2pay. By offering a secure, convenient alternative, businesses can attract more customers and build trust.

As more Canadians prioritise security and convenience in online shopping, pay by bank is quickly becoming the go-to alternative to credit cards. Businesses that adapt now can gain a competitive edge by offering consumers the payment methods they prefer.

Ready to offer pay by bank at your online store? Visit clik2pay.com to get started today.