Mobile payments have transformed the way Canadians send, receive and spend money. Whether you’re transferring funds to a friend, tapping your phone at checkout or paying for something online, your smartphone can now handle many tasks that once required cash, cards or a visit to the bank.
This guide explains the different types of mobile payment services available in Canada, how they work and what to know about security.
Mobile money transfer options:
There are three ways to transfer money through your mobile phone:
Option 1: How to send money through Interac e-Transfer from a phone
Interac e-Transfer is one of the most popular ways to send money electronically in Canada. It allows you to quickly transfer funds from your bank account to another person using just their email address or mobile number, directly through your banking app.
Here’s how to send money through Interac e-Transfer from your phone in just a few simple steps:
1. Open your banking app
Download and open your bank’s mobile app, then sign in using your password, fingerprint or face ID. Most major Canadian banks support Interac e-Transfer directly within their apps.
2. Select Interac e-Transfer
Every banking app is different, but most have an option labelled Interac e-Transfer, Send Money or something similar. You can usually find it in the main menu, the payments tab or the transfers section of your mobile banking app.
3. Choose or add a recipient
Select an existing contact or add a new recipient by entering their name and email address or Canadian mobile number. Double-check the information before continuing.
4. Enter the transfer amount
Type in the amount you want to send and choose the bank account the money will come from. You can also typically include a short message or note so your recipient knows what the money is for.
5. Create a security question (if needed)
If your recipient doesn’t have Autodeposit enabled, you’ll need to create a security question and answer. Choose something only the recipient would know, and share the answer with them separately.
6. Review and send the transfer
Carefully review the recipient details and transfer amount, then tap Send or Confirm. The recipient will receive a text message or email notification with instructions to deposit the funds. If they use Autodeposit, the money will be deposited automatically into their bank account.
What is Autodeposit?
Audodeposit is a feature from Interac that allows e-Transfers to be deposited automatically into your bank account without needing to answer a security question. Once you register your email address and mobile number with Autodeposit through your online or mobile banking app, any Interac e-Transfer sent to that email or mobile number will be deposited directly into your chosen account. It makes receiving money faster and reduces the risk of forgetting passwords or security answers.
Bank accounts with free Interac e-Transfers in Canada
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If you don’t have Autodeposit enabled, you’ll get a text or email notification with instructions to deposit the funds when you receive an Interac e-Transfer. Just log in to your online or mobile banking account and correctly answer the security question provided by the sender to deposit your funds.
You can also request an Interac e-Transfer through most Canadian banking apps by selecting the Request Money option. Select a contact or enter the sender’s information and the amount requested. If you’re requesting money from a client, you can also add an invoice number and due date.
Features of mobile banking apps
Besides sending money to other people, mobile banking apps offer a variety of other useful features. Depending on your bank, you may be able to:
Pay bills or schedule future payments
Check your account balance and transaction history
Upload and deposit cheques
Track credit card or loyalty points
Find nearby branches and ATMs
Lock or manage your debit and credit cards
Manage investments, savings accounts or registered accounts
Set up account alerts or spending notifications
Option 2: Transfer money through mobile wallets
Mobile wallets are apps that let you make payments and manage cards or loyalty programs using your mobile device. They’re offered by device platforms (such as Apple and Google), banks and other financial service providers. To get started, you typically just need to add your credit, debit or loyalty card details to the app and verify your identity.
Most mobile wallets allow you to set up a security method such as a PIN, password, fingerprint or facial recognition. If you add multiple cards, you can choose a default card that’s automatically used for payments unless you select another at checkout. Once set up, your wallet securely stores your card details so you don’t need to carry physical cards for everyday purchases.
Google Wallet is a mobile wallet that allows you to store payment cards and make in-store, in-app and online purchases with a valid Google account. Google Wallet works on both Android and iOS devices, but tap-to-pay in stores is only available on Android. To use the app, simply add your credit, debit or loyalty card, verify it with your bank if necessary and then choose it at checkout.
Although you can use Google Wallet to send money to friends and family in India and Singapore, this feature isn’t available in Canada. Here, the app is mainly used for contactless payments, online checkout and storing digital passes.
Supported cards and items:
Credit cards
Debit cards
Transit passes
Boarding passes
Loyalty cards
Select gift cards
IDs
Digital keys
Proof of vaccination
Apple Wallet (Apple Pay)
If you have an Apple device, you can use Apple Pay to make secure payments with your debit, credit, transit or other cards. It allows you to pay in stores, online and in apps without needing to physically use your card.
Although Apple Pay offers a peer-to-peer money transfer option called Apple Cash in the US, this feature isn’t available in Canada.
Supported cards and items:
Credit cards
Debit cards
Transit passes
Boarding passes
Loyalty cards
Tickets
Select gift cards
IDs
Digital keys
Samsung Wallet (Samsung Pay)
Samsung developed Samsung Wallet exclusively for Galaxy devices, as it relies on the Samsung Galaxy One UI interface. It allows users to store and use payment cards and other digital items like loyalty cards and digital keys.
Samsung Wallet can be used for in-store tap-to-pay purchases, as well as in-app and online. However, it’s not as widely accepted as Apple Pay or Google Pay.
Credit cards
Debit cards
Transit passes
Boarding passes
Loyalty cards
Tickets
Gift cards
IDs
Digital keys
Option 3: Send money with money transfer apps
If you aren’t quite ready for mobile banking or mobile wallets, other third-party payment services offer an easy way to send money from your mobile device.
PayPal
PayPal is one of the most popular third-party payment services available in Canada, allowing users to send and receive money using an email address. When you sign up for a free account, you’ll have the option to link your bank account and credit or debit cards to fund payments.
You can then send money using the PayPal app or through a mobile web browser. Once a payment is sent, the recipient receives an email notification prompting them to claim the funds by signing into or creating a PayPal account.
Funds can be held in your PayPal account, used for online purchases from merchants that accept PayPal or withdrawn to a linked bank account.
Does Canada have Zelle, Venmo or CashApp?
Popular peer-to-peer payment apps like Zelle, Venmo and Cash App are not available in Canada. All three services are restricted to the United States and don’t support Canadian bank accounts.
Instead, Canadians can use Interac e-Transfer for fast domestic transfers between bank accounts, which is often free depending on the bank. There are plenty of alternative money transfer services available for both domestic and international transfers as well, though these services typically charge a transfer fee.
With hacking and data breaches frequently making headlines, you may be concerned about the safety and security of mobile banking and payments. But digital payments are more secure than you might think, employing tools like:
Biometric authentication. Many mobile wallets and banking apps use fingerprint scanners, facial recognition or device passcodes to verify your identity before approving payments. This adds an extra layer of protection if your phone is lost or stolen.
Secure passwords and verification codes. You’ll want to set up a password that’s difficult to guess. Some payment services also use one-time passwords, PINs or codes for transfers to prevent anyone else from claiming your cash. These passwords expire after the transaction is complete or after an allotted time.
Monitored payments. Depending on the service, you may be able to monitor or cancel your mobile payment if you discover you’ve sent it to the wrong address or it’s not picked up as expected. Cancelling a payment returns the funds to your account, though it may incur a fee.
Encryption and tokenization. Most mobile banking and wallet services encrypt sensitive information during transactions. Mobile wallets like Apple Wallet and Google Wallet also use tokenization, which replaces your actual card number with a unique digital token so merchants don’t receive your full banking details.
What to watch out for
When it comes to offline safety, most people know it’s not a good idea to share their PIN or card information. The same applies when sending money through your cell phone. Here are a few important security risks and precautions to keep in mind.
Protect your device against theft. Mobile wallets are secure, often requiring your fingerprint or PIN. But what about if you lose your phone? Most devices and payment systems today allow you to remotely lock, locate or erase the device’s data. This prevents potential thieves from using your card even if they make it past your PIN or fingerprint. And because your data is encrypted, they can’t access your information to use your card manually.
Take caution with public Wi-Fi. Public Wi-Fi networks can sometimes expose users to fake hotspots or intercepted connections. While payment information is usually encrypted, hackers may still attempt to steal login credentials or trick users into entering information on fraudulent websites. It’s safest to avoid accessing banking apps or setting up payment wallets on unsecured public networks.
Watch for phishing scams. Fraudulent emails, texts and pop-up messages may appear to come from legitimate banks or payment services. These scams often try to trick you into revealing passwords, verification codes or banking details. Avoid clicking suspicious links or downloading attachments from unfamiliar sources.
Monitor for malware. The threat of malware is more common on computers, but that doesn’t mean your mobile phone is completely safe. Malicious apps or links may attempt to steal passwords, banking information or other personal data. To reduce your risk, only download apps from official app stores and keep your device and apps updated with the latest security patches.
Bottom line
Mobile payments make it easier than ever to send money, shop online and pay in stores directly from your phone. From bank-based transfers like Interac e-Transfer to digital wallets from Apple, Google and Samsung, Canadians have a wide range of secure payment options available for everyday use.
The right service for you depends on how you prefer to bank, shop and transfer money. While Interac e-Transfer focuses on fast and cheap domestic transfers, others are better suited for contactless payments, online checkout or international money transfers.
Frequently asked questions about mobile money transfers
Banks and financial institutions offer different ways of monitoring the progress of your payment, though you can often view the status through an app or your online account.
If you send money through a service like PayPal, your transfer's status is available in the app or online.
With many services, your transaction is "pending" until the payment is claimed, allowing you to cancel it before it's picked up. If the payment shows as received, call your bank or money transfer service to ask how to reverse the transaction.
With most mobile payments, you receive a text or email with details on how to complete the transaction. The process of setting up an account or claiming money varies depending on the service used.
If you're unsure, contact the bank or service that sent you the notification.
It depends on the payment service and financial institution, but you generally have anywhere from a week to a month to pick up the payment before it expires. With PayPal, funds are automatically returned to the sender after 30 days if the recipient doesn't claim the money.
Each financial institution and payment service enforces its own transaction limits, but Interac e-Transfers are typically limited to $2,000–$3,000 per transaction. Check with your bank or preferred payment service to find out how much you can send or receive.
Not always. Some payment services allow you to collect funds using a service account, mobile wallet or cash pickup location without needing a traditional bank account.
However, many mobile payment systems in Canada, including Interac e-Transfer, typically require you to have access to a participating bank account to deposit the funds. Your email address or mobile number is usually used to receive the payment notification and identify your account.
Rebecca Low is a writer for Finder. She has contributed to a range of digital publications, including income.ca, Indeed, and Expatden, writing on topics like personal finance, career development, and travel.
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Chelsey Hurst is a publisher at Finder, specializing in banking and investments. She loves empowering people to avoid financial pitfalls and make better decisions with their money. Chelsey has a Bachelor of Science from Redeemer University, a Master of Science from McMaster University, and has won multiple awards for research communication. In her spare time, Chelsey enjoys cooking and taking long walks in nature.
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