Why Interac is Growing in Popularity for Online Casinos
Interac is one of the most popular payment transfer services in Canada, with good reason. As such, it’s also a very popular method of depositing and withdrawing from online casino accounts.
In order to understand the method’s dominance in Canadian e-commerce, we need to look at history as well as popular features.
Perhaps the most important point to note about the brand is that it’s been around longer than online internet banking. The Interac Association was founded in 1984 as a non-profit alliance of financial institutions as a means to create a shared network allowing consumers to access their money at any ABM operated by the Big Five banks: RBC, CIBC, Scotiabank, TD, and Desjardins. Today, nearly every ABM in the country is on the Interac Shared Cash Dispensing (SCD) system and more than 250 financial institutions use Interac.
That solid foundation as well as the greenfield advantage has been instrumental in the brand’s success and cornering the market through the deployment of several products and features. The headstart gave them a leg up in the nascent industry a full decade and a half before any US banks even scratched the surface of convenient peer to peer transfers.
Acxsys was the for-profit company that began the e-Transfer service with the Interac Association in 1996. Merger attempts were quashed by the Competition Tribunal, and the companies operated under Consent Order until 2013 when they were allowed to set fees for more than cost recovery directly arising from running the business. The companies were finally allowed to merge as a for-profit corporation known as Interac Corp., on 1 February 2018, in order to fully compete with rivals.
It would be too easy to say that the method has been adopted by online gambling enthusiasts simply because it’s so easy to use and nearly everybody already uses one of the products or services. We also should look at its systemic surge in usage over the last couple of years in general.
Current Interac Services
- Interac e-Transfer – allows the transfer of money from one bank account to another
- Interac Debit – This was Canada’s first national debit card service
- Interac Flash – a secure, no-contact enhancement of the Interac Debit card that allows Canadians to pay instantly by simply holding their cards near a POS reader
- Interac Cash – gives Canadians greater access to their cash at ABMs across the entire country
- Interac Online – for secure online payments made directly from a banking account
- International Services – Canadian cardholders can now make purchases from nearly 2-million US businesses. Foreign account holders can also receive money from ABMs in Canada.
In a nutshell, Interac allows convenient, secure, and efficient money transfers for casino deposits (person-to-business P2B); casino cashouts (business-to-person B2P); person-to-person (P2P), and business-to-business (B2B).
One of the most important recent developments affecting all customers may have been the 2017 introduction of Autodeposit and Request Money. These made it easier for consumers, including those at online casinos, to receive payments into their accounts.
e-Transfer payment volume increased significantly in 2017 with more than $92 billion being transferred in about 241 million transactions.
Another interesting metric was reported by the company in 2017: 76% of Interac e-Transfer transactions were deposited using a mobile device.
The next year saw an even more dramatic surge in numbers with 2018 showing a staggering 54% increase in volume to 371 million transactions, and a 45% increase in value year to year to $132 billion.
The transfer is now used over a million times each day by Canadians for everything from paying the babysitter to settling debts, buying groceries, paying utility bills, or transacting with casinos. Mobile usage reportedly stayed steady at about 76% of volume.
Where to use Interac
All of the online casinos listed on Best Casinos Canada have been thoroughly vetted and reviewed, and each is licensed for international online play.
Why Interac is a Longterm Solution
The Canadian banking system is a well-defined industry that has been working in harmony for several decades. Interac works closely with the major banks to identify consumer needs, sometimes before they arise. The evolution of the brand shows its ability to respond to market forces.
What formerly required the use of email addresses and security questions has evolved into using phone numbers as identifiers, making either deposits or withdrawals into nearly one-step processes. Consumer needs are being met in real-time with peer to peer payment processing, instant messaging transfers, and even Siri-based payments for iOS users of Siri at RBC.
As each new development in consumer demand appears on the horizon, Interac leaps ahead of any potential competition to maintain market dominance. After all, if you can pay and receive money from any entity on the system – easily, quickly, and securely, why would any US or another competitor even try to capture Canadian customers in the current market?
A few European countries such as Sweden, Finland, and Germany have instituted BankID personal identifier numbers to make all online banking transactions instant. Canadians, on the other hand, may not be ready to completely abandon cash just yet. However, According to a Forex source, Canada is now the top country in the world for cashless transactions, followed closely by Sweden.