From Gen Z to Baby Boomers: How different generations are using online money transfers during COVID-19

COVID-19 has changed the way Canadians shop, work and socialize. Shifts in consumer behaviour have led to accelerated adoption and use of the Interac e-Transfer platform to move money securely. Over 64.2 million Interac e-Transfer transactions took place in June. Canadians also set a new record for average transactions per day in a single month at 2.14 million.

The ever-present need for secure, convenient digital transactions is intensified during a crisis, when having real-time access to your money is imperative. Layer on physical distancing requirements and the desire for contactless payment and shopping experiences, and it’s no wonder COVID-19 is accelerating Canadians’ shift to digital transactions.

Because consumer behaviour has changed since the start of the pandemic in Canada, certain Interac e-Transfer use cases have naturally decreased – paying your babysitter, splitting a night out, paying a friend back for concert tickets. However, Canadians have begun using the Interac e-Transfer service in new ways – and some for the first time.

Canadians seeking fast, safe money transfer solutions

Quicker access to your money is especially valuable when managing finances during a crisis. Since mid-March, more than 40 per cent of all Interac e-Transfer transactions have been deposited via Interac e-Transfer Autodeposit, a five per cent increase compared to February. When using Interac e-Transfer Autodeposit, funds are deposited directly into your bank account, without the extra step of answering a security question. Today, there are 10 million Canadians registered for Interac e-Transfer Autodeposit, a figure that continues to grow.

More Canadians 65+ using the Interac e-Transfer platform to transfer money during COVID-19

The use of digital tools among Canadians 65+ gradually increases every year, with internet usage more than doubling since 2007¹. As seniors in Canada become more accustomed to online tools, they also become more comfortable with online money transfers and digital transactions. In 2020, the number of Interac e-Transfer users aged 65+ increased 29.8% year-over-year².

The rate of growth has increased quickly during the pandemic in Canada. Since mid-March, the number of Canadians 65+ using the Interac e-Transfer platform increased 40 per cent compared to the same period last year³. This follows similar trends across other online solutions, such as digital banking, which saw a 250 per cent increase in registrations by senior clients in April 2020⁴.

This exponential growth can be attributed to seniors in Canada adapting to imposed COVID-19 restrictions. For example, friends, family and neighbours may do the grocery shopping, helping seniors avoid the grocery store crowds. To maintain the contactless payment and shopping experience and avoid high-touch surfaces, they’ll pay the shopper back using an Interac e-Transfer transaction instead of cash.

Increase in Canadians aged 18-24 using Interac e-Transfer

First-time Interac e-Transfer users aged 18-24 may begin using the Interac e-Transfer service to pay back friends, receive support from family or split rent with roommates when they start working or attending post-secondary school.

Canadians in provinces with lifted restrictions may be once again splitting restaurant tabs or fees for their sports leagues via online money transfer. They may also receive Interac e-Transfer transactions in return for running errands or grocery shopping for family and friends. Plus, as more businesses offer virtual and contactless experiences, Canadians 18-24 are more likely to choose digital transaction options⁵ such as Interac e-Transfer, Interac Flash or Interac Debit for In-App and In-Browser Payments.

Canadians are adapting to the COVID-19 pandemic, choosing Interac Flash for curbside pickup and contactless payments, Interac Debit for In-App and In-Browser Payments to replicate their favourite restaurant experiences, and Interac e-Transfer for safe money transfers at home and in their businesses. As Canadians’ needs change, the convenience of Interac solutions will influence a long-term shift in consumer behaviour.

^{1 https://www150.statcan.gc.ca/n1/pub/11f0019m/11f0019m2019015-eng.htm}

^{2 Based on Interac e-Transfer Q&A users from January 1, 2019 – July 1, 2019 and January 1, 2020 – July 1, 2020}

^{3 Based on Interac e-Transfer Q&A users from March 17-May 6, 2020}

^{4 http://cibc.mediaroom.com/2020-06-09-Canadians-65-and-over-lead-the-surge-in-digital-banking-use-amidst-COVID-19-pandemic}

^{5 https://www150.statcan.gc.ca/n1/daily-quotidien/180829/dq180829b-eng.htm}