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The Growth Of E-Transfers In The Wake Of The Pandemic

The past year and change has been a tough one on all of us. The coronavirus pandemic has been kind to no one. Of course, the ongoing priority is everyone’s health and safety. But, of course, business owners all over Canada are continuing to struggle with restrictions on allowing customers in their stores.

It’s a good thing that modern technology has developed to a point where people don’t have to visit stores to make purchases from them. Online shopping has become a go-to resource for practically all requirements. As well, sending money from person to person is now easier than ever. Thanks to Interac’s e-transfer service, people are able to make payments on their mobile devices with just a few quick taps.

COVID-19 has accelerated the shift to digital commerce and money transfers.

As reported by Interac, both Canadian businesses and consumers have been making heavy use of e-transfers during the pandemic. Not only is COVID-19 changing the way people shop at brick and mortar stores, it is significantly increasing the use of digital payment solutions. Canadians have been widely using e-transfer to pay rent, send friends gifts and pay business owners for products and services.

“Cash flow becomes especially important during times of uncertainty,” Interac adds, “Cheques can be cumbersome and maintain a risk of non-sufficient funds. Digital solutions, however, offer Canadians almost immediate access to their money at a time when they need it most.”

E-transfers are now a staple in the lives of Canadians.

According to Interac, one year ago, this month, e-transfers in Canada reached a historical daily high. On May 1, 2020, there were over 3.75 million transactions. The company points out that Canadians are increasingly looking for secure, convenient and near real-time payment systems during the COVID-19 pandemic. Interac’s e-transfer has been a proven solution.

“In fact, since the outset of the pandemic, the growth of first-time Interac e-Transfer users has been 43 percent higher when compared to user growth during the same time last year,” reports the Interac website, “Canadians are also using the Interac e-Transfer platform more often. The average number of Interac e-Transfer transactions per user in April grew by 9 percent compared to the same time period last year.”

E-transfers are used to provide financial support to family members.

Want to split the grocery bill? Need to help out with the rent? Canadian families are assisting their members with responsibilities by using Interac’s e-transfer service. Naturally, this trend has grown significantly since the beginning of the COVID-19 pandemic.

“Since March 15 (of last year), there have been 27 per cent more proximity Interac e-Transfer transactions sent than forecasted,” says Interac.ca, “Proximity Interac e-Transfer transactions are transactions made between users in the same place. This shows Canadians are using the Interac e-Transfer service for in-person transactions as well.”

What does the popularity of e-transfers mean for your business?

Anyone with a bank account can utilize Interac’s e-transfer service. What that means is that e-transfer users are most likely debit card carriers. Does your company accept debit cards? At Unity Payments, we believe that the easiest and most convenient way for merchants to accept debit cards is with the Poynt Smart Terminal. To learn more, please don’t hesitate to call us at 1-800-661-3761. You may also email us at info@unitypayments.ca.

Author

Dan Faraldo