What Is Pay by Bank? A Guide for Canadian Businesses

Imagine this: It’s peak holiday season. Your online store is bustling, carts are filling up, but when customers get to checkout, delays and card declines cause them to abandon. You lose sales and watch competitors with slick, instant payment options win your business.

This isn’t a distant future, it’s happening now in Canada. As payment trends shift, Canadian shoppers expect speed, security, and simplicity. As Canadian consumers look for more choice in how they pay, pay by bank has become a go-to option

If you’re not offering pay by bank, you’re missing out on higher conversions, lower fees, and a competitive edge that’s reshaping Canadian commerce.

See exactly how pay by bank works: Watch our quick explainer video

What is pay by bank?

Pay by bank enables customers to pay for goods and services directly from their bank account, no card required. Instead of entering card details, buyers securely log in with their banking app (often using Interac e-Transfer® in Canada) and send funds immediately and securely.

For consumers, it’s a convenient way to pay in real time, without extra steps or risk. For businesses, pay by bank means:

• Lower transaction fees versus credit cards
• Reduced chargeback risk
• Instant payment confirmation for faster cash flow

How does pay by bank work in Canada?

Pay by bank uses trusted frameworks like Interac and open banking. The typical steps for businesses are:

• Customer selects a pay by bank solution, such as Interac e-Transfer, at checkout
• They choose and log in to their bank securely
• Money is transferred instantly from their account to yours
• Both parties receive real-time confirmation
• No credit card numbers, no delays, and fewer abandoned carts.

Why Canadian businesses should pay attention

Canadian consumers value secure, frictionless, and transparent payment options. By offering pay by bank, your business can:

• Lower payment processing costs, save on interchange and transaction fees
• Get paid faster, transactions settle in real time
• Build trust, leveraging Interac and direct bank authentication
• Increase conversions, reduce friction, and cart abandonment at checkout

Key Use Cases for Pay by Bank in Canada

• eCommerce: Frictionless, instant checkout experiences for online shoppers
• Collections: Digital-first solutions for faster, more efficient collections
• Non-profits: Seamless, automated donation processing
• Recurring or bill payments: Hassle-free, secure recurring payments and authorizations
• Gig economy & marketplaces: Instant, direct payouts for contractors, freelancers, and vendors

How to Get Started with Pay by Bank

You can add Interac e-Transfer to your platform by partnering with a payment solution provider such as Clik2Pay. 

Try Clik2pay FREE and see how flexibility can help: Click here