Calgary-based Neo Financial is levelling up its payment game today by officially joining the Interac e-Transfer network as a participant. They are the only second fintech in Canada to do so.
This move follows a change in Canadian rules that allows fintechs to hook directly into the country’s main money-moving system rather than relying on a traditional bank to middleman the process. If this sounds familiar, it is because Toronto-based Wealthsimple made a similar move back in 2023 when it became the first fintech to get its foot in the door under these broadened access rules.
While Wealthsimple helped pave the way for non-banks to join the network, Neo’s new status as an official participant gives it the same kind of independence. Instead of paying fees to a partner bank to handle e-Transfers, Neo now has the keys to the car, allowing it to process transactions faster and build its own custom payment features.
“Interac e-Transfer is central to how Canadians move money, and joining as a Participant means we now control how we build on it,” said Jeff Adamson, Co-founder of Neo Financial, in a statement on Wednesday.
Neo Financial powers the Tim Hortons credit card which debuted in 2023.
For the over 1.3 million Canadians using Neo, this means the app should eventually feel a lot more like a traditional bank account when it comes to moving money. It is a major milestone for the Calgary startup as it continues to compete with both the Big 5 banks and rivals like Wealthsimple for a permanent spot in your digital wallet.
Neo essentially offers a free savings and chequing accounts (with zero fees and no minimum balances) with free Interac e-transfers, plus supports Apple Pay and Google Pay.
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