Email Money Transfer, more commonly known as e-Transfer, is a popular method of transferring and receiving money electronically using an individual's email or phone number. This comes with advantages in speed and convenience compared to traditional money transfer methods, thus its increased usage.
As recently as 2023, a survey of Canadian businesses conducted by Statistics Canada found that 50.00% of all surveyed businesses had integrated EMTs, also known as Interac e-Transfers, as a payment method. This placed it hot on the heels of Cash, which was accepted by 53.4%, and Cheque, which held the highest acceptance rate at 70%.
The EMT method is primed for even more growth as more financial institutions shift towards digitalization and online processes. Given its importance, let us delve into the world of Email Money Transfers and all you need to know about them.
In Canada, Email Money Transfers (EMTs) are also known as Interac e-Transfers after the company Interac, which facilitates this service through their interbank networks. The two are synonymous and basically refer to the same thing in Canada.
To send money with Interac e-Transfer, you'll need a Canadian bank account at a participating financial institution, the recipient's name, email address, or mobile phone number, and access to either a banking app or an online banking service. Below is a step-by-step guide to complete your first Email money transfer:
Receiving money through Interac e-Transfer is straightforward and can be done in two ways:
The main advantage of EMTs like the Interac e-Transfer is their speed and accessibility. They allow you to transfer money to most Canadian individuals and businesses at minimal fees, with no charges when accepting payments.
Email Money Transfers also have a reputation for being secure, with multiple layers of protection, including encryption and authentication processes. The use of a security question adds an extra layer of security, ensuring that only the intended recipient can access the funds.
Even with its lightning speeds, Interac e-Transfer is not infallible, with its most restrictive feature being the daily limit of $3,000 and weekly limit of $10,000 imposed on users. The Canadian Payment Methods and Trends Report of 2023 opined that this may be why a majority of Canadians still chose to use cheques over online transfers when conducting Peer-to-Peer payments.
The future of Interac e-Transfers looks promising, with several exciting advancements on the horizon. This includes integrating enhanced security features, such as biometric authentication and advanced encryption, to further protect transactions.
The increasing adoption of AI and machine learning in financial services also holds much promise. The vision includes automated payment reminders, smart budgeting tools, and enhanced functionalities for businesses to help streamline payroll and payments and handle customer refunds more efficiently.
As digital payment systems continue to advance, EMTs like the Interac e-Transfer are set to remain the cornerstone of secure and efficient financial transactions for Canadians, adapting to meet the evolving needs of an increasingly digital world.