One of Canada’s most recognizable payment solutions is taking their technology across borders and overseas.
Interac is working together with nanopay to build a new way of digitally transferring money securely from Canadian bank accounts to other countries through a high-volume corridor. The new partnership will begin with transfer capabilities to India.
“Bringing another real-time digital payment option to Canadians to send money to relatives, friends or businesses around the world is very exciting,” said Debbie Gamble, VP of product and platform development at Interac. “Taking a made-in-Canada, ubiquitous and scalable platform like Interac e-Transfer and integrating it with a savvy fintech force like nanopay will open up more access points, choice, convenience and control for Canadians to move their money.”
The extension of Interac’s e-transfer platform to work with international countries is important, as the brand is widely used and trusted in Canada. In 2016, Canadians sent more than 158 million transfers with the service, growing 50 per cent year-over-year and totalling more than $63 billion. During peak times, Interac may process more than one million transfers a day.
“The Interac e-Transfer platform is the backbone of digital payments in Canada,” said Gamble. “The potential for innovation is limitless when technology partners can build on it and leverage the service that is already an integral part of Canadians’ daily lives.”
This is an important step forward for Interac, as prior to this move customers had to enlist the third-party help of Western Union. If Interac is able to keep all the fees and processes within their own system, it will open the door for many outside banks and companies to work with the Canadian provider.
India is a good choice for the first iteration of the international e-transfer service to roll out, as Canadians frequently transfer money to the second-most populous country in the world. If someone wants to send cash, all they have to do is use the same Interac system they have been using for years and transfer it to an eligible Indian bank account. The only thing that is different is the beneficiary of the funds must provide a bit more information as to comply with regulatory requirements.
Nanopay’s part in this will be helping Interac introduce the service to as many financial institutions as possible across Canada. As the service becomes more widespread, the two companies hope to introduce the service to more countries, with the U.S. and the U.K. up high on the list for sure.