Interac adds Mastercard's push pay to scale outbound transfers
Interac is adding Mastercard Send to support a $24.5 billion market for cross-border payments that originate in Canada.
Interac Corp., Canada's debit network, and Mastercard will start with transmissions from Canada to bank accounts in Europe. National Bank of Canada will be the first bank to test the international remittance service for its personal banking clients. Interac has been expanding its transfer capabilities for both P2P and B2B use cases, creating a need to streamline outbound transactions.
"Whether it's traveling abroad, sending money to family or friends overseas, or purchasing products from a business in another country, the ability to move funds across borders quickly, easily and securely is becoming a must-have," Ramesh Jayakrishnan, director of Push Payments for Mastercard in Canada, said in a Wednesday press release.
The new service will connect banks to Mastercard Send through the Interac e-Transfer platform, a combination that helps banks "improve customer experience and future-proof their cross-border payment service," Jayakrishnan added.
Interac cited data from the World Bank showing Canada has become a large market for international payments with $24.5 billion in remittances being sent from Canada to other countries.
To use Mastercard Send through Interac, Canadians will log in on their mobile or online banking services and choose it as an option through Interac e-Transfer.
Interac will make the service available to other Canadian banks in the coming months, and also expects to add transfer capabilities to mobile wallets and payment cards in the future.