Nearly 90% of eligible Canadians have used Interac e-Transfer, which Interac Corp. noted reached one billion transactions within a year for the first time since the service launched two decades ago.
“The one billion transaction milestone shows the growing relevance of Interac products in the digital economy,” said William Keliehor, Chief Commercial Officer at Interac.
This level of penetration puts Interac in a good position to analyze the spending habits of Canadians, which have certainly been influenced by major events such as the Covid-19 Pandemic and currently rampaging inflation.
Canadians moved around more than $600 billion through transfers over the Pandemic, according to Interac, with half indicating they increased their use in this period. Interac saw annual Transfer growth of 16%, confirming this trend.
“Canadians have long embraced Interac e-Transfer to send money, but recent rapid growth may demonstrate that the service has achieved a new relevance as Canadians return to the shared experiences that may have been out of reach in the earlier stages of the pandemic,” suggests Anurag Kar, assistant vice president at Interac.
A survey by Interac found that 74% of Canadians want to spend more time having fun experiences with friends and family following the Pandemic. They are looking forward to reunions with friends and family, upcoming birthdays and anniversaries, and travel.
This trend toward experiences over material goods post-Pandemic is particularly visible among younger Canadians, Interac says.
“Young Canadians might be eager to expand their social circles through these shared experiences,” notes Kar. “They’re often splitting the costs associated with them as a means of helping stay in control of their money and turning to Interac e-Transfer to do so.”
As for the more present impact of inflation—which is a concern for 80% of Canadians—nearly two-thirds of spenders in Canada they are more cautious about their finances than ever before.
“Each generation is navigating the changing economic conditions,” said Keliehor.
The silver lining is that smaller-scale experiences we might once have taken for granted are a renewed source of excitement for many Canadians, including meeting friends for a meal or drink, arts and cultural outings, and sporting events.