Global Payments to add Interac Konek to Canada network

Global Payments will enable Interac's Konek digital wallet across its merchant network in Canada, extending the service to thousands of businesses nationwide.

The agreement will give merchants using Global Payments access to account-based payments alongside card payments at checkout. Backed by leading Canadian financial institutions, Konek lets consumers pay online either by credit card or directly from a chequing or savings account.

The rollout is due to begin through Global Payments' application programming interface, before expanding to the company's built-in online checkout and hosted payment products. Konek's account-based payment function uses Interac Direct, which is available only through the wallet.

The move comes as payment providers and merchants seek to broaden the range of checkout options for online shoppers. Interac cited research showing that 47 per cent of mobile wallet users in Canada value the convenience of mobile wallet payments, while 42 per cent of Gen Z and Millennial consumers are increasingly open to paying directly from their bank accounts for online purchases.

The data points to a broader shift in payment preferences in Canada, particularly among younger consumers who are more willing to consider pay-by-bank options. For merchants, adding an account-to-account payment route may also offer a way to diversify beyond traditional card acceptance.

Interac said Konek combines account-based and card-based payments in one product and gives merchants issuer fraud liability, shifting responsibility for fraud losses from the merchant to the issuer.

It also said account-based payments through Konek can lower acceptance costs compared with most traditional cards, a potentially important factor for merchants under margin pressure and reviewing the economics of digital checkout.

Checkout shift

Online checkout has become a competitive issue for retailers and service providers as consumers expect more payment choice and a smoother buying process. In response, providers have been expanding digital wallet, bank transfer and alternative payment options.

For Global Payments, adding Konek strengthens its offering in Canada with a product built around domestic banking links. Because its merchant network spans businesses of different sizes, the launch could give broad distribution to a relatively new payment method.

Interac is one of Canada's best-known payment networks, with nearly 300 financial institutions connected to its system. Canadians use Interac products more than 20 million times a day on average, according to the company.

Konek is part of Interac's effort to extend that presence further into eCommerce by combining bank-based and card-based payments in a single wallet. The arrangement with Global Payments should increase its visibility among merchants that already rely on outsourced payment acceptance and checkout tools.

"We are proud to collaborate with Global Payments to scale the availability of Konek to more businesses of all sizes across the country," said Kris Zanuldin, Head of Konek at Interac.

"This enablement of Konek underscores accelerated momentum across Canada's payments ecosystem as merchants and consumers seek more flexible, secure checkout experiences and access to account-based payment solutions," Zanuldin added.

Global Payments framed the launch around changing merchant needs as checkout takes on greater importance in online sales and customer retention. It said adding another payment method could help businesses meet rising consumer expectations while managing payment acceptance costs.

Chris Baron, General Manager and Canada Country Head at Global Payments, said merchants are increasingly treating checkout as a point of differentiation rather than a back-end function.

"Canadian merchants are navigating rising consumer expectations, and checkout has become a real differentiator," Baron said.

"Enabling Konek gives merchants access to a solution that's built for how Canadians want to pay. This includes more direct, bank-based payment options that offer speed, security and flexibility, while helping them manage the cost of acceptance," he added.