Calgary-based Neo Financial has taken a significant step deeper into Canada’s core payments infrastructure, joining Interac e-Transfer as a direct participant.
The move follows Interac’s recent decision to expand access to its network for qualified payment service providers, opening the door for fintechs like Neo to operate alongside traditional financial institutions.
For Neo, the shift is more than symbolic. Becoming a participant gives the company greater control over how it builds and delivers money movement features to its more than one million customers.
“Under the hood, this is about access,” said co-founder Jeff Adamson in a LinkedIn post. “We now have the direct connectivity to move at our own speed, ship the features our customers want, and own the end-to-end experience.”
Interac e-Transfer remains one of the most widely used financial services in the country, processing more than 1.6 billion transactions last year alone and serving as a backbone for everyday peer-to-peer and business payments.
Neo’s entry reflects a broader shift underway in Canada’s fintech landscape, where regulated payment service providers are beginning to gain more direct access to foundational payment rails traditionally dominated by banks.
Fellow fintech Wealthsimple was granted similar access to Interac e-Transfer in 2023.
As a registered PSP under Canada’s Retail Payment Activities Act, Neo can now participate more fully in the ecosystem, with increased independence over customer experience, product development, and transaction flows.
Adamson framed the milestone as part of a larger competitive shift in Canadian finance.
“This level of access is a win for competition and a win for every Canadian who wants more choice in how they move their money,” he said.
The change is expected to accelerate Neo’s roadmap, enabling the company to build new payment features and reduce reliance on intermediary partners. It also positions Neo more competitively against both digital-first challengers and incumbent banks, which have long benefited from direct access to Interac’s network.
For Interac, the addition of Neo underscores its push to modernize and broaden participation in Canada’s payments system, while maintaining its focus on security and trust as digital transaction volumes continue to grow.
Founded in 2019, Neo has raised more than $650 million to date and offers a range of financial products including credit cards, savings accounts, mortgages, and embedded finance solutions through its partner network.
As fintechs gain deeper integration into national infrastructure, Neo’s move signals a continued blurring of lines between banks and technology companies and a more competitive future for how Canadians move money.
Leave a Reply