Top Questions Canadian Businesses Ask About Pay by Bank Solutions
May 9, 2025
As digital payments continue to evolve in Canada, businesses are exploring smarter, more secure ways to accept payments. One solution that’s gaining momentum is Pay by Bank—a method that lets customers pay directly from their bank accounts. It’s a streamlined alternative to credit cards and other traditional options, offering lower costs, improved security, and faster settlement.
While still emerging, Pay by Bank is showing real potential. Solutions like Interac e-Transfer® have already made this payment method familiar to millions of Canadians. And now, more businesses are asking great questions about how Pay by Bank works, what it offers, and how customers feel about it.
Below, we answer the top questions Canadian businesses are asking to help you make informed decisions.
1. What’s the Current Adoption Rate of pay by bank in Canada?
Adoption of pay by bank is growing steadily, though there’s still room for broader awareness. According to Payments Canada’s 2025 report, 29% of Canadians already find pay by bank appealing, while another 38% remain open-minded but neutral. That means nearly 7 in 10 Canadians are opennot opposed to trying or adopting this type of payment.
Key opportunities:
- 53% of newcomers to Canada are likely to use pay by bank.
- 47% of gig workers also show high interest in the solution.
Source – Payments Canada, 2025
2. What Are the Main Benefits for Businesses?
Canadian merchants who offer pay by bank can enjoy a number of advantages:
Lower Costs: Pay by bank can help reduce processing fees by cutting out intermediaries like credit card networks.
Increased Security: Since customers don’t have to enter card details, 32% of Canadians view pay by bank as more secure. This boosts trust and may reduce fraud risks.
Irrevocable, Guaranteed Funds
Many pay by bank methods, such as Interac e-Transfer, are irreversible once authorized, reducing chargeback risk.
Source – Payments Canada, 2025
3. What Are the Barriers to Adoption—and How Can They Be Overcome?
As with any innovation, some education is needed. Here’s what’s holding some customers back—and how businesses can help shift perceptions:
Awareness Gaps: Many Canadians simply aren’t familiar with pay by bank yet. But as more major brands adopt the method, awareness is expected to rise.
Security Questions: While some users trust pay by bank more than cards, others want reassurance. Highlighting features such as bank-grade encryption and no credential storage can ease concerns.
Age-Based Preferences: Younger Canadians (34%) are more open to pay by bank compared to older Canadians (22%). Tailored communication strategies can help reach different age groups effectively.
Source – Payments Canada, 2025
4. How Does It Stack Up Against Other Payment Methods?
While pay by bank is still catching on, many businesses are already embracing modern payment types alongside traditional ones. A 2024 report from Clearly Payments shows:
- 73.4% of businesses still use cheques
- 58.9% use electronic funds transfers (EFT)
- 54.4% use credit cards
- 50% use Interac e-Transfer
Pay by bank complements these methods with a new level of speed, convenience, and cost-efficiency—making it a valuable addition to your payment mix.
5. What Does the Regulatory Outlook Look Like?
The Canadian regulatory environment is increasingly supportive of pay by bank innovation.
- This year, the Bank of Canada will begin supervising payment service providers, enhancing safety and consumer trust.
- Real-Time Rail (RTR), led by Payments Canada, is under development and will support instant bank-to-bank payments, further enabling pay by bank solutions.
Canadian consumers—and businesses—are becoming more open to new ways to pay and get paid. While pay by bank is still gaining traction, it’s clear the demand is there, especially among younger, tech-savvy, and financially flexible audiences.
With lower costs, better security, and the support of upcoming infrastructure like RTR, pay by bank is positioned to become a trusted and efficient option in your payment toolkit.
Interested in learning more or integrating pay by bank into your platform? Now’s the time to get ahead of the curve. Talk to us.
