The sharp rise of digital commerce has spawned a new type of business that allows users to purchase anything from almost any part of the planet. In Canada alone, it is estimated that there are over 27 million active e-commerce users. This global movement resulted in the emergence of multiple digital payment methods that help consumers keep their transactions safe and easy. Join us as we go over some of the most popular digital payment methods in Canada.
Interbank network services have become a popular payment method around the world. In Canada, Interac is a leading provider in the electronic financial transactions field, serving as the predominant e-Transfer service. Currently, there are over 250 financial services that work with Interac, as the network provides fast and secure online direct transfers from users to the recipient. In addition, Interac also has an e-Transfer option, which sees the user’s banks and the recipient’s bank communicate to make the transfer happen.
This type of payment method has become essential for many Canadian businesses operating online. This method is particularly successful among online entertainment providers. For instance, gambling websites, such as Genesis Casino, accept Interac casino payments that make it safe for users to deposit and withdraw money from their accounts. It is likely that this payment method will be rolled out to other Canadian service providers thanks to the benefits outlined above.
Card payments are by far the most popular cashless payment method around the world. This type of payment was first introduced back in 1950, but took a decisive step in the 70s when cards and payment terminals became electronic. As a result, payments become safer and clients could control their account balance and cancel transactions. 5 years later, the invention of the chip card made it possible to store and send large amounts of information across banks in real-time. This was the key to unlocking global card transactions and making credit cards the most popular payment method in Canada and the rest of the world.
With the arrival of e-commerce, cards became the main payment method in the online world. Nowadays, cards have also adapted to the new wave of improved and faster payments by adopting contactless technology, which doesn’t require clients to swipe or enter a personal identification number.
Apple Pay is the company’s very own online payment system, which replaces physical wallets by gathering bank and card information on a single app. Apple Pay was first released in 2017 and has since then become one of the most popular payment methods in Canada. This digital wallet software allows users to dispense physical cards and cash presenting an easier, safer and more private way to make purchases.
Apple Pay is supported on the iPhone and other Apple devices. Essentially, the software works by mimicking a card’s chip signal, making it possible for tablets and phones to make contactless payments. On Macs, Apple Pay is also available for online payments. Just like on iPhones and iPods, users can store their card information and use them to make online purchases, without having to type in their card information. In order to make these transactions safe, the software creates a unique transaction code for each payment, which prevents card data from being stored on Apple’s servers. In addition, Apple Pay allows you to activate multiple layers of security, such as passwords, biometrics and even facial recognition. Recently, it has been announced that Apple Pay will also turn iPhones into point-of-sale devices.
Overall, digital wallets have definitely won the hearts and minds of users. As a result, the latest data indicates that by 2025, virtual wallets will be used by over 4.8 billion users, a figure that accounts for roughly half of the world’s population. In fact, this estimated growth is expected to be the result of a significant increase of users in Latin America, Africa, Southeast Asia and the Middle East. More specifically, the Southeast Asian market is on track to become one of the largest consumers of e-wallets, with a growth projection of 311% by 2025.
While these are some of the most popular online payment methods in Canada, Paypal, Neosurf and InstaDebit are also some of the top services for digital transactions.